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CU Snapshot

 October '18September '18
# of CUs5,6475,653
Total Assets
($ billions)
Total Savings
($ billions)
Net Cap.
Loans to Savings85.8%85.5%
Loan Delinq.0.6%0.7%

         Credit Union Indicators

Should CUs partner with fintech?

Both sides have strengths to offer each other in a collaborative relationship, says CSCU's Tom Davis.

Credit unions' relationships with financial technology (fintech) companies might define their future in financial services, according to Tom Davis, CSCU's senior vice president of finance and technology.

When you look at credit union strengths and weaknesses, and those of fintech, "there's something to be said" for collaboration, Davis says.

Fintech companies have several strengths over financial institutions: They're nimble, need less revenue to reach their financial goals, and are not weighed down by regulatory burdens.

But fintech companies also have weaknesses compared with credit unions: They're limited in what they can offer because of regulations, don't have the same scale as traditional financial services firms, and lack integration of companion products and services.

Furthermore, credit unions have other attractive advantages, including stable funding, financial expertise, and an established and cultivated customer base.

When you blend credit unions and fintech on paper, "the cons sort of go away" for both, Davis said.

What will fintech companies likely do as they mature? According to Davis, they could:

The future of credit unions could depend highly on whether fintech is a friend or a foe, Davis says.

(Via news.cuna.org)