Credit unions and fintechs don’t always get along. But the right fintech can be essential for credit unions hoping to expand their services and find more flexibility. With so many fintech solutions out there, it can be tough to find the right one. Jim Ryan, the VP of Strategic Partnerships at Curql Collective spoke with the Banking on Experience team on the issue. Jim Ryan is credit union royalty. He literally has credit unions running in his veins. His dad was part of the Indiana Credit Union League, and he got into the business himself while in college, working as a teller. Today, he is the Vice President of Strategic Partnerships at Curql Collective, working to tell their story to credit unions and CUSOs. Using technology to serve members The COVID-19 pandemic provided a tremendous opportunity for credit unions to refine how they serve their members. Part of this was just simple communication, reaching out to members to make sure they were okay during uncertain times. But technology was the backbone. This involved everything from using RSA keys for remote workstations, to integrating lead generation and CRM systems. While every credit union assuredly met the challenges of the pandemic with grit, technology was often the foundation. Figuring out fintech When they first entered the industry, many fintech organizations were identified as a threat, especially by credit unions. But in reality, these companies were focused on bringing technology to the financial sector. Technology isn’t anything new in the space. Think about the longstanding fixtures we all take for granted. At one time, what we might see as mundane and ordinary were groundbreaking and industry-shattering. Fintechs offer those breakthroughs today. Creating a fintech ecosystem These individual companies want to get to market quickly. They do this by focusing on solving a single problem in the financial sector. The issue is, when focusing on solving a complex but singular issue, fintech solutions often need a marketplace to plug in those solutions. Many of them are finding credit unions to be that marketplace. This provides a way to get a substantial audience of users, further proving an idea as a solution. Curql Collective helps directly fill this gap, providing a clear ecosystem of fintech providers that can help credit unions solve specific problems. The struggle for clarity The nature of credit unions often means they can suffer from a lack of role clarity. This is particularly acute for smaller credit unions, where the business development officer might wear several department hats. As credit unions get larger, it becomes more feasible to assign increased role clarity. This can allow credit unions to operate more like a fintech. With greater clarity, it becomes easier for the credit union to focus on larger objectives, rather than the constant struggle to meet everyday obligations. Meeting credit unions where they are Once credit unions get over the idea of a fintech as an external threat, the offerings out there can still be overwhelming. Organizations that want to modernize don’t always have the resources for a complete overhaul. This can lead to innovation paralysis. That’s why it’s essential for fintechs to meet credit unions where they are. Ultimately this can allow credit unions to quickly provide new solutions that members want, while still keeping continuity with existing operations. This doesn’t mean all fintechs are great for all credit unions. But by more clearly understanding the fintech ecosystem, credit unions can find the best solutions. Listen to the full episode here. CRMNEXT has the answers you want Discover the right CRM for your credit union with a free demo. You’ll quickly discover that CRMNEXT puts an end to sticky notes, ALT-Tabs, and lost productivity. You’ll love it, and so will your members (even if they don’t know why). Visit crmnext.us today.

Small credit unions are increasingly feeling the financial squeeze. New compliance requirements often mean looking at larger vendors for the best tools. But those vendors are often targeting customers at a much larger scale. Becky Reed, the CEO of Lonestar Credit Union, chatted with the Banking on Experience team about ways your Credit Union can navigate today’s uncertain waters, and how size shouldn’t limit you from employing a modern technology stack. A Little About Becky Reed Lonestar Credit Union’s CEO started her career in retail management, working in a record store. While she didn’t start out in credit unions, Becky is known to say, “I wasn’t born here, but I got here as quick as I could.” She broke in as a financial service officer and quickly moved up to branch manager. She arrived at Lonestar in 2014 as the COO. Like a lot of credit unions at that time, Lonestar faced significant technology challenges. Going to the Cloud with Pure IT When faced with the daunting task of pinpointing Lonestar’s technology stack issues, Beck transitioned Pure IT to a CUSO to help her meet her vision of moving the credit union to the cloud. Drawing on a fellow record store employee from the 90s, the new CUSO helped to meet that goal. The Challenge of Finding Help A lot of times credit unions can get caught up in asset size when working with technology vendors. Rather than trying to help a credit union meet their vision for technological modernizations, vendors come in with their own agenda, selling hardware rather than meaningful solutions. Becky believes credit unions need to focus on their needs and search for the right company, even if that means pursuing a vendor that typically only works with billion-dollar institutions. Why credit unions struggle with the Cloud In the broader enterprise space, the transition to the cloud isn’t so much a migration as a sprint for many organizations. Credit unions can often lag behind. Part of this is a matter of habit. Credit unions want to keep using what works. Another element is that credit unions aren’t always scalable. A lot of credit unions can’t afford a CTO. They rely on homegrown IT staff. This can lead to a view of technology that’s laser-focused, but often with a narrow purview of the wider world of technology. All of these issues can prevent credit unions for using member-benefitting technology. Overcoming the “too small” mentality Many smaller credit unions put limitations on themselves, particularly around CUSOs. Regardless of asset size, there’s no reason a credit union can’t invest in or start a CUSO as long as it's part of a strategic plan. For Lonestar, this meant embracing beta testing. The future with Fintech Fintech startups used to be seen as the enemy. But the reality is, most fintech can align well with credit unions as long as they can both jump through some flaming hoops. Once things are clearly outlined, these relationships can provide incredible value for a credit union and a crucial proving ground for fintech startups. Data with a purpose Data may be the new oil, but data for data’s sake are not only irrelevant, they’re overwhelming and distracting. Becky warns that credit unions should start with the question they want data to solve. Does your answer serve every department? While technology can be disruptive, having representatives from all departments can make it clear what the benefit of a shift will be before implementation. As Becky sees it, credit unions can survive with a limited budget by being creative and resourceful. They can use technology to their advantage, and they can focus on providing high-quality member service to “punch above their weight.” Listen to the full episode here. Learn More about CRMNEXT Get your free demo and see how the right CRM can have a huge impact at your credit union. Visit crmnext.us today.