BANKING
through the account to account payment method will see their loan repayments arrive into the payee ’ s account instantly . With more traditional card repayments funds can take several days to clear which can cost the consumer more in interest fees .”
“ A FLEXIBLE , PLATFORM-BASED APPROACH CAN ALLOW CREDIT UNIONS TO BENEFIT FROM THE FINTECH BOOM , BY INCORPORATING NEW APPS TO AID IN CREATING NEW CHANNELS OF INCOME ”
A challenge too far ? But how has the fintech boom affected credit unions in a broader sense ? Is the competition now too heavily pitched against them ? Hickman thinks not , and says the benefits balance out the challenges .
“ A flexible , platform-based approach can allow credit unions to benefit from the fintech boom , by incorporating new apps to aid in creating new channels of income . In the past , digital banking apps were traditionally used for people to deposit cheques . Now we have systems like BNPL which have challenged credit unions , with their ease and adaptability . However , working with fintechs , credit unions can not only survive but also thrive .” Hickman says fintech apps can also support customer service , giving credit unions the ability to enable mundane transactions , whilst bringing traditional ‘ white-glove ’ services to the forefront digitally .
Ultimately , although changes and competition are uncomfortable , they also
48 February 2022