BANKING
Digital transformation has changed the business world as we know it . From face to face interactions and the diminishing use of cash , to blockchain and cryptocurrency use , the financial industry has been rocked on its axis .
Regardless of whether it ' s a start-up based on digital technologies , or an incumbent organisation with a legacy system core , the financial services and banking industry has probably experienced the greatest changes globally .
But although some areas of banking have embraced the new normal , there are other parts of the financial sector that have struggled with the transformation . Credit unions and building societies , for example , are a breed apart from the usual incumbent .
Pandemic disruptions So , what changes have occurred in the credit union space over the past 24 months ?
Peter Longo , Senior Director , Product Management Digital at
Finastra believes branch networks have undergone massive changes , mainly because they have transformed from transaction centres into advisory centres .
He points out that the credit union industry has also become much more aggressive in terms of supporting small businesses over the past couple of years – mainly due to changes brought about by the pandemic .
Credit unions , Longo says , have been reallocating and staffing up in commercial and small business sectors , as well as cross-training employees and advisors to do more , as member needs change .
“ Credit unions have typically thrived in lending , credit cards , and card spending . This has been disrupted due to the pandemic . Embedded finance competitors have come to the fore alongside community banks , that have historically refrained from going after microloans or smaller unsecured loans , but now look to explore this .”