If your credit union has been paying attention, then you should already know that October is Cybersecurity Awareness Month. Sponsored by the Cybersecurity Infrastructure Security Agency (CISA) and the National Cyber Security Alliance (NCSA), the annual event is in its 18^th year and continues to help individuals and businesses raise awareness about the importance of cybersecurity in the present age.

The first known form of currency--the Mesopotamian shekel--emerged nearly 5,000 years ago and cash has been used to purchase goods and services ever since. Until recently, it was a safe bet that cash would be around for the foreseeable future...that may not be the case anymore.

A cashless society is a common theme in science fiction novels. But with the rise of digital banking and cryptocurrencies, together with global crises and tech-savvy consumer demand, those works of fiction are becoming closer to fact. Cash is not going away, at least not anytime soon, but the popularity of non-cash transactions continues to grow.

Digital payments and technologies are reshaping how people all over the world spend money--to the point where some economists are debating the future of cash. It’s not just the widespread use of credit and debit cards, but the rise of digital wallets, digital banking apps, direct deposits, instantaneous peer-to-peer payments and digital lending services that are solving people’s banking needs, and as a result, making cash less common.

The growing demand for digital banking services and the rise of fintech companies into the banking space means that credit unions (CUs) have to change the way they do business in order to stay competitive. Members now want access to a variety of online banking services, and the credit unions that fail to provide them likely won’t be around too much longer.

2020 was a tough year for credit unions and other businesses around the country. Many were forced to make fast and difficult changes to satisfy their member and customer needs. As the future of brick-and-mortar remains uncertain, credit unions must take advantage of all the opportunities and resources that are available to them.

The National Credit Union Administration (NCUA) consistently provides guidance and resources to help credit unions better serve their communities. With funding from Congress, they have been able to fund the Community Development Revolving Loan Fund (CDRLF) for many years,  enabling CUs in rural and underserved communities to continue providing basic financial services to their members with the hopes of bolstering their local economies through loans and technical assistance grants. While the 2021 funding of the program was put at risk in 2020, the program managed to stay alive and is again accepting applicants.

In 2015, just 7% of banking services were completed on digital platforms from start to finish. While the credit union industry has made great strides in the last few years, there is still a lack of digital options for members. This can be a huge deterrent for members especially when digital lending isn't offered. Some small credit unions might be under the impression that they won’t benefit from digital lending platforms due to the demographics of their membership or for budget constraint reasons. However, it has been proven to help many small CUs in crucial ways. Here are some questions small credit unions should keep in mind when considering digital lending platforms.

Not everyone loves a challenge, but small credit unions face them every day. Small credit unions encounter more constraints than their larger CU counterparts, yet they get the opportunity to provide creative solutions that put them out on top. The limitations imposed on small credit unions have only made their solutions more targeted and innovative and allows them to connect with their members in a way that large credit unions cannot. Here are three ways small credit unions outperform larger financial institutions around them, despite the many hurdles thrown their way.