The Role of Credit Unions Today | Part 2 | Mambu’s Banking Insights for Growth

Credit Unions must adapt to thrive.

In Part 2 of this panel conversation from Mambu’s Banking Insights for Growth, we’re looking at what Credit Unions need to do to shore up their future.

After introducing the unique role of Credit Unions in Part 1, this part unpacks the technology behind transformation. Here we get more insights from Sue Mitchell from Mitchell Stankovic and Associates, Karan Maini from Persistent Systems and Anshul Verma from Mambu.

Don’t miss this important discussion.

Unlocking the Potential of Credit Unions Through Digital Transformation

In Part 2 we find out how credit unions can break free from outdated technology infrastructure and move towards digital-first solutions that empower them to better serve their members. We found out in Part 1 that digital transformation was key but here we get a bit more focus on how they can achieve that. 

Overcoming Technology Bottlenecks

Unsurprisingly one of the big barriers faced by credit unions is the limitations of legacy systems. Here, Karan Maini highlights how outdated platforms that were once cutting-edge 15 years ago are now holding credit unions back. To thrive in today’s digital age, credit unions must unbundle these old systems and invest in new technologies that enhance their ability to attract new members, increase loan-to-deposit ratios, and grow their member base. This is where partnerships with Mambu come in, allowing these organisations to adopt cloud-native, modular systems that allow them to scale rapidly and offer a wider range of financial products.

Maini also shares a success story about a credit union in Canada that embraced digital transformation, positioning itself ahead of major banks in the region. The efforts allowed them to expand their services into new markets, while also creating tangible value for its members.

Shared Services and Scalability

For smaller credit unions, the answer may be about sharing services, something Sue Mitchell picks up on in this conversation. By adopting a shared services model, credit unions can pool resources and scale more effectively, overcoming the obstacle that their legacy stacks creates.

She also points out the critical role of cybersecurity in ensuring the sustainability of smaller credit unions. Despite representing over $75 billion in assets, small credit unions are vulnerable to cyberattacks. By adopting shared services and modern, cloud-native solutions, they can enhance their security and operational resilience.

Embracing a Culture of Change

The discussion also touched on the human element of digital transformation. Both Maini and Mitchell emphasised that the shift to new technologies is not just about systems, but also about changing mindsets. Credit unions need to overcome the fear of change and embrace the opportunities that come with modernization. As Maini noted, the fear of not changing has become more pressing than the fear of transitioning to new systems. Mitchell echoed this sentiment, urging credit unions to adopt a forward-looking approach to both technology and business models, leveraging partnerships and APIs to maintain flexibility and innovation.

This segment, just like the first, has provided a wealth of advice and insights for credit unions seeking to get ahead. By addressing technology bottlenecks, adopting shared services models, and fostering a culture of change, credit unions can remain true to their mission of community focus and member service while embracing the future of finance. 

If you’re interested in finding out how other parts of the banking ecosystem can digitally transform, be sure to watch other episodes in the Banking Insights for Growth series.