There have been many changes in the financial industry over the past couple of years, and credit unions have had to be agile and adapt to the latest trends. Although the sudden digital transformation of banking was difficult for many credit unions who pride themselves on personal service and community involvement, most were able to adjust and find ways to bridge the gap between digital banking and superb member service.

With the lowest mortgage rates in years, it’s no surprise that mortgage originations and refinancings are soaring around the nation. This is good news for credit unions. However, advancement in digital technologies and the rise of fintech companies into the lending space also means that the competition in the mortgage lending market is as tough as ever.

Today’s consumers have turned to digital solutions to handle all sorts of daily transactions. Unsurprisingly, e-commerce and the use of digital wallets have soared, and so have fintech companies that offer digital banking and digital lending services. Credit unions must keep pace and adapt to the changes in order to thrive.

The game has changed for credit unions when it comes to how they service their member’s needs, especially in terms of digital lending. Because of the rise of fintech companies and app-based financial services, credit union members now want access to fast and easy digital lending services. Although that doesn’t mean branch visits and personalized attention are a thing of the past, CUs who wish to compete and thrive in the future must come up with a well-thought-out digital strategy.

New technologies are rapidly reshaping the way credit unions do business. Digital services are replacing traditional brick-and-mortar services, and it’s likely that this trend is here to stay. For credit unions to keep up with the times and remain competitive in this digital age, they must continue to upgrade their technologies to enhance their digital banking services.

As credit unions turn to digital solutions to meet their member’s changing needs, in-branch transactions and manual processes are rapidly becoming a thing of the past. Such digital transformation throughout the financial world is here to stay, and CUs must adapt to survive and thrive.

One of the big takeaways from 2020 for credit unions was that digital banking services are not only going to be important for the future, but they’re also essential right now. To satisfy members’ expectations and compete with the rise of fintech companies, CUs must choose the best technologies and continue to enhance their digital banking capabilities.One of the most important elements of credit unions’ digital banking future will be offering competitive digital lending services.

The pandemic forced businesses around the world to shutter their doors, and sadly for many, they will never re-open. Among the businesses that were able to adapt and survive, many did so by turning to digital technologies to solve problems and conduct transactions that were traditionally done in-person. This has created a boom in technology that has implications for many different sectors of the business world and economy.

Lending has always been fundamental to the growth and sustainability of credit unions, and during such dire economic times, it’s become even more important. In the past, lending was conducted in-person at branches and was often time-consuming and complicated for members. But the world has changed and the old ways of doing things are changing with it. These days, members want quick and easy digital lending options, and CUs that fail to provide these services risk being left behind.

2020 has been an unprecedented year for businesses and financial institutions around the globe. Nearly everyone's bottom line has been affected by the pandemic, and credit unions, like all businesses, have had to be agile and adopt new practices in order to survive.

One area that has always been crucial for the profitability of credit unions (and now even more so) is lending. Credit unions that sustain profitable and healthy lending practices have a leg up on the competition and will be around for a while, and those that don’t, will run the risk of dying a slow death and ultimately weighing out their merger options.