The most important fintech trends for credit unions to watch in 2024
The fintech industry is constantly evolving, and credit unions need to stay ahead of the curve to remain competitive and meet the needs of their members. There have been a lot of advances lately and we are sure this list might even become outdated by the end of the year, but we are sure these will be some of the most important credit union fintech trends for 2024, what do you think?
1. Artificial intelligence (AI) and machine learning (ML)
AI and ML are already being used by fintech companies to develop new products and services and to improve the efficiency of existing ones. Credit unions can use AI and ML to personalize the member experience, identify and prevent fraud, and make better lending decisions.
For example, credit unions can use AI to personalize the member experience by recommending relevant products and services based on each member’s individual needs. Credit unions can also use AI to identify and prevent fraud by analyzing member data for suspicious activity. Finally, credit unions can use AI to make better lending decisions by assessing each borrower’s risk profile more accurately.
2. Blockchain
Blockchain is the technology that underlies cryptocurrencies like Bitcoin, but it also has the potential to revolutionize the financial industry. Credit unions can use blockchain to improve the security and efficiency of payments, develop new lending products, and create new ways for members to interact with their finances.
For example, credit unions can use blockchain to create faster, more secure, and more efficient payment systems. Credit unions can also use blockchain to develop new lending products, such as peer-to-peer lending or fractional ownership lending. Finally, credit unions can use blockchain to create new ways for members to interact with their finances, such as by providing them with access to decentralized finance (DeFi) protocols.
3. Open banking
Open banking is a new regulatory framework that allows consumers to share their financial data with third-party providers. This can give members more control over their data and allow them to access new products and services. Credit unions can use open banking to partner with fintech companies and offer their members a wider range of products and services. For example, credit unions can partner with fintech companies to offer their members new and innovative products and services, such as robo-advising or budgeting tools. Credit unions can also use open banking to give their members more control over their data, such as by allowing them to switch between different financial institutions easily.
4. Digital payments
Digital payments are becoming increasingly popular, and credit unions need to make sure that they offer their members a variety of convenient and secure ways to pay for goods and services. Credit unions should invest in new digital payment technologies, such as mobile wallets and contactless payments.
For example, credit unions can offer their members mobile wallets that allow them to make payments using their smartphones. Credit unions can also offer contactless payments, which allow members to make payments by tapping their debit or credit cards against a contactless terminal.
5. Cybersecurity
Cybersecurity is a major concern for all financial institutions, including credit unions. Credit unions need to invest in robust cybersecurity solutions to protect their members’ data from cyberattacks. For example, credit unions should implement strong authentication measures, such as two-factor authentication. Credit unions should also encrypt their members’ data and provide employee security awareness training. These are just a few of the most important fintech trends credit unions should watch in 2023. By staying ahead of the curve and adopting new technologies, credit unions can improve their member experience, reduce costs, and increase revenue.
Conclusion
Credit unions that embrace fintech trends will be well-positioned to succeed in the years to come. By investing in new technologies and partnering with fintech companies, credit unions can offer their members a wider range of products and services, improve the member experience, and reduce costs. We would also warn though to fully investigate any fintech or fintech providers as we have seen, historically, many times where companies were too eager to jump on the new thing and invest too much and lose. There are risks of these having unknown vulnerabilities, not being fully compliant, or leading one to work with nefarious third-party companies. In the end, we say look to what will best empower your members just as we look to what will best empower the credit unions we work with. If you are ready to use the best forms and documents for credit unions on the market, check out our free credit union document samples!
