Future Proofing Credit Unions from the Digital Onslaught

20 Feb 2019
by Aaditya Jain, Ronak Doshi, Kriti Gupta, Pranati Goswami, Rahbare Islam Nayyer, Supratim Nandi

Winds of change in member expectations, rising regulatory costs, and the roadblock stemming from legacy systems are the key challenges being faced by credit unions. Keeping pace with the changing member preferences and dynamic technology can be overwhelming. Even though credit unions have largely been regionalized and operate within a community, they need to form partner networks to mutualize their run costs and focus on improving member experience.

Rising tech spends by large banks and increased interest in FinTechs pose major threats to credit unions in their digital journey. As per Everest Group estimates, the tech spend by top four banks in the U.S. is five times the technology spend of the entire credit union industry. An already limited tech budget, offset by core legacy system maintenance, eats into their funds as credit unions contemplate between run vs. change investments.

In this report, we analyze the challenges and key trends for the credit unions in the United States. This report also presents key takeaways on how credit unions can accelerate their digital transformation journey and visualize the future state of this industry. Technology & customer preferences are changing rapidly, and it is imperative that credit unions keep pace with this change.

SCOPE OF THE ANALYSIS

  • Market segment: IT services
  • Geography: United States
  • Industry: Credit unions

SOURCES LEVERAGED

  • Expert analyst inputs
  • Previous Everest Group research
  • Secondary data sources that are publicly available

CONTENTS

This report focuses on the credit union industry in the United States:

  • Credit unions – challenges, priorities and trends
  • Digital disruption and changing consumer preferences
  • Implications for credit unions to keep pace with the change

Membership(s)

Banking and Financial Services (BFS) – IT Services

 

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