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The thing with fintech like QCash is we are genuinely excited to be working with credit unions. Their “CU mission” is clear, and we know how to help them achieve their goals and objectives.

It is comforting to know that we are partnering with a specific form of financial institution in credit unions that possess a number of inherent advantages compared to others. Members and account holders tend to view the member-owned credit unions as more trustworthy by reinvesting their money into the  member and organization while not having to worry about  figuring out all the subtle, sly ways executives could sap more account fees into their investors’ holdings. 

The challenge with credit unions, especially the more established community organizations, is the potential threats and anxiety executives may feel from the pressure to innovate and adopt that “newfangled” technology everyone is talking about. Due to the original COVID-19 lockdown in early 2020, however, the credit union movement was forced to innovate much sooner than they may have planned to fulfill the remote banking demand members required to financially survive such a turbulent era in American history. And honestly, the movement is better for it. 

Photo: Eric Ward | Unsplash

Credit unions’ relationship with new technology

Now two years into the 2020s, credit unions are increasingly interfacing established and traditional technology into modern and contemporary systems. Oftentimes, executives are hesitant to make that switch to new systems like fintech.

Both credit unions and fintech can seem like attractive alternatives to other financial institutions, especially for Millennials. According to the National Credit Union Association, almost two million Millennials became credit union members between 2013 and 2014. Credit unions also bring the additional benefit of a personal, community-centric connection. If a consumer exhibits poor credit or low income, an executive is often much more willing to work with them and possibly even mentor them on improving their financial health and greater personal finance goals. 

In fact, during the height of the pandemic, while banks were pulling back on credit lines and loan availability, credit unions actually leaned in to offer assistance and support to struggling members in need. A number of credit unions, for instance, offered loans without underwriting. These are the small measures that can turn into BIG measures for your members down the line by helping to build trust between credit unions and their membership.

The point remains that when credit unions pair newer technology like the QCash CUSO with existing processes or platforms, your members get the best of both – a member-centric platform and a healthy overall infrastructure that can keep up in a consistently evolving market.

If 2020-2021 wasn’t clear enough, for those credit unions looking to continue growing they will need to continue to be open towards adopting new technologies and fintech like tap cards, mobile small dollar lending platforms, and digital wallets. And many appear to be ready for it. PYMTS research found that 41 percent of credit unions see partnerships as crucial to innovation. 

With added support from complementary digital and mobile platforms like QCash life event lending that can provide tailored small dollar lending assistance to credit union members, the credit union difference can only build on its community-first approach to service members with the latest financial inclusion tools available.