Non-bank competition is increasing with the rising popularity of mobile payment apps such as Venmo, Zelle and Square, just to name a few. Millennials and younger credit union members, in particular, have discovered the convenience of these apps and the ease with which funds can be exchanged and transferred. Using P2P (peer-to-peer) mobile payment systems, restaurant bills and bar tabs can be paid, pizza money contributed and concert tickets repaid with just a few clicks, all while never leaving the couch. However, with all this virtual money exchanging hands, should there be concerns these transactions are being adequately protected and secured?

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According to a LinkedIn study, Millennials will change jobs an average of four times in their first decade out of college, compared to about two job changes by Gen Xers in their first ten years out of college. This in contrast to their parents and grandparents, who seemingly "stuck it out" for longer, with the mentality of "why leave a perfectly good job for an uncertain one." even if the promise of greater money and benefits was appealing. While the reasons for younger generations to job hop more frequently are not limited to just factors of pay and benefits, a study by Utah-based Thrive Communications found that over 20 percent of Millennials would actually quit a job if the employer did not offer fast in-office technology. Technology is such a central and crucial aspect of this generations' lives that businesses who do not adopt new technologies will not keep the hearts of younger generations for long. It is not so much a lack of loyalty as it is a shift in priority. For this very reason, credit unions who wish to attract and keep Millennial members must build a modern banking experience, and do it well. 

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Amazon has been a threat to retail for many years. While brick and mortar stores have pointed fingers at Amazon for their decline in foot traffic, some credit unions are beginning to fear competition from Amazon as well. Amazon has yet to implement any banking features in the U.S. but they have already begun taking deposits in India. Delivery staff can now accept cash as payment upon delivery, as well as collect deposits through a Cashload feature in a version of Amazon Pay. Amazon allows their India-based customers to deposit any surplus cash from their purchase into their Amazon Pay account, and they can deposit additional funds to be used toward future orders or bills within partner websites and apps. Amazon allows deposits up to 10,000 rupees ($143 U.S. dollars), which is quite a bit, considering the average Indian household makes about $50 per month. Could such services be on the horizon for U.S. customers? Here’s what we can expect from Amazon in banking: Read More

Baby Boomers were once the ultimate buyer, and the target market of banks and CUs, as well as industries across the board. Now, a new generation is soon to be the biggest player in the market: Millennials. This generation will become the largest group of first time home buyers, and by the year 2020, they will control $7 trillion of U.S. assets. Among all the generations, there is the biggest gap between Boomers and Millennials as their values, habits, and interests are very different. This has spurred a lot of change for businesses, as they need to adjust several facets of their operations to fit the needs of this new generation. It has reached the point where this change is inevitable, and those who ignore the needs of Millennials will lose out to the competition. Here’s how you can redesign your credit union to fit the needs of the ever elusive Millennial member.

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Not too long ago, there was a lot of skepticism associated with digital banking. Many assumed it was not secure, and even more people would not have considered a digital-only model for their credit union. Today the financial landscape is changing, and rather than being skeptical of digital, people are becoming impatient with traditional banking institutions… particularly Millennials. Younger generations are demonstrating their lack of trust in the traditional banking system at an unprecedented rate. Here are trends financial institutions can expect in 2019.

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Credit unions thrive on personal interaction and service. After all, many credit unions were founded for a lack of personalization in their local banking community. However, technology has brought on an opposing, yet competing, banking solution. Digital-only banks are low-cost solutions for those who want to manage their banking needs exclusively online. Digital-only financial institutions are defined as strictly digital banking solutions. So banks and credit unions that have in-branch service and brick and mortar options that also happen to offer full digital service, cannot be considered a digital-only bank. Digital-only institutions are more commonplace overseas but they are gaining momentum here in the United States. Here is the scoop on digital-only institutions in the financial industry today.

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The success of your credit union is intimately connected to the technology you choose and how it's applied. When it comes to credit unions operating as financial institutions versus technology institutions, the lines have become increasingly blurred. Credit union CEO's are progressively finding themselves operating more like CTO's. This may be an unwelcome amendment to their job description, but the nature of the business requires this balance to be found.  A dangerous mistake that an executive who is not comfortable with technology can make is the mentality of “if it’s not broken, don’t fix it”. This can be a risky tactic, as ‘broken’ technologies are not always easily identifiable. Your credit union core system may work, but it could be creating inefficiencies that are not quite as obvious.

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When selecting a core provider, there is more to consider than features and functionality. There are quantitative factors that should be considered, and these numbers will help guide a credit union's decision in the selection process. Choosing the right core for your credit union can be overwhelming, but looking at the numbers and data can help the right core platform become more obvious. When shopping for core systems, obey the numbers, and your credit union will find the right fit.

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A core system and all its ancillary products will equip your credit union with the majority of the functionality you require. However, as new products and services become available, the core alone may not be enough to keep your credit union competitive with the largest financial institutions that compete for your members. Application programming interfaces (API) can bridge that gap, and provide access to new features that credit unions are seeking. Some CUs are skeptical of APIs for concerns of security but most would argue that the benefits outweigh the added risk. APIs allow developers to introduce more add-ons with features that may not be available with the core platform alone. Here’s why your credit union should open up to new possibilities through APIs.

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In the realm of credit union core technology, there are some key data processors that are leading the pack. It’s no surprise that according to Callahan & Associates 2019 Core Report, the two biggest providers in the industry have continued to hold a lion share of the market with 42.9%, supplying core platforms to nearly 2,500 credit unions. As big players continue to grow, the number of credit unions has dropped. There are 219 fewer credit unions, year over year, totaling 5,596 for the industry as a whole (Q2 2018). Besides the "big two", there are other core providers in the industry that simply cannot be ignored. The top dogs typically cater to billion dollar CUs and even hold 83.3% of that market, but when it comes to small to medium-sized credit unions, niche core providers are making their impact. Here’s how some core providers add value and support for credit unions and their members. 

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