Collaboration and cooperation have always played major roles in the credit union ethos. One of the best examples of that philosophy in action is participation lending, which is when credit unions band together to back a loan to a single borrower. By doing so, credit unions can share the risks and rewards. For many credit unions, mitigating risk is vital, and so is the spirit of community that can be enhanced when rewards are shared.

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.

Last Summer, the reputation of banks fell for the first time in 5 years. After a series of data breaches in the banking industry, customers began to distrust larger financial institutions. As a result, people began to turn to credit unions, which they viewed more positively. The big point of differentiation between credit unions and other financial institutions is the culture of trust and member service. Credit unions tend to be more involved in their community, and are able to connect with members on a personal level. These are qualities that members have begun to value a lot more and credit unions anticipate more members in 2019 to join for these very reasons.