Fintech Partnerships are Key to Achieving Digital Transformation

In this article in our series of 2021 Technology Trends, we give thought to the changing digital ecosystem and how credit unions can develop tomorrow’s capabilities today and remain viable to their existing members while attracting today’s “modern” consumer.

There is no question that competition is thickening for credit unions and the need for rapid digitalization is pressuring all industries to change their business models to adapt to consumers that expect a more enhanced, personalized experience. For credit unions however, these demands seemingly present more challenges than most industries by virtue of the legacy systems and processes currently in place at most institutions. Core systems providers have traditionally focused on what they do best, processing transactions and automating back-end processing. This focus obviously placed process functionality above the needs of the member. In today’s digital marketplace the focus is now beginning to shift to a member-first approach.

Many credit unions have been contracting third-party vendors and Fintech companies for some time now to provide solutions such as mobile banking, remote deposits, card processing and instant issue just to name a few. However, over that time these third-party integrations have created a maze of disparate platforms, each requiring different forms of connectivity and programming languages. Additionally, these relationships all require ongoing contract reviews, maintenance and vendor due diligence requirements. These requirements are burdensome for credit unions of all sizes and even more so for small to medium-sized credit unions that lack the time, budget and in-house technological expertise.

Moving forward credit unions should be reviewing their entire digital ecosystem and searching for core system providers that offer and support third-party and fintech solutions that are tightly integrated into the core as if it were all operating in one single platform. In addition to providing credit unions with the products and services that drive a greater member experience, the core provider reduces the credit unions overhead burden by taking on the responsibility of vetting the third-party and fintech companies and performing the research, development and testing of those products.

At Sharetec, we develop core processing solutions with two goals: make it smarter and keep it simple. Our system is scalable to meet the needs of credit unions of every size. We offer a modern Browser-based User Interface and open systems architecture along with a variety of third-party and Fintech partnerships to provide your credit union with best of breed solutions that drive digital transformation.