BANKING
Hickman adds , “ They are able to introduce technologies that challenge the incumbent methods that traditional banks and banking services have more pressure to maintain .”
Future proofing for the next decade Ultimately , credit unions have no choice but to catch up and digitise , otherwise they will become outmoded and outdated by shiny and fast-moving fintechs . But progress is always positive – and Longo believes the predicted changes will be beneficial for both unions and customers alike . He also believes these changes will come in two main areas .
“ The first change I see is an increased focus on small businesses . During the COVID-19 pandemic , community banks and credit unions provided critical financial assistance to small businesses through the Paycheck Protection Program ( PPP ).”
“ DURING THE COVID-19 PANDEMIC , COMMUNITY BANKS AND CREDIT UNIONS PROVIDED CRITICAL FINANCIAL ASSISTANCE TO SMALL BUSINESSES THROUGH THE PAYCHECK PROTECTION PROGRAM ”
He points out that as a global operator , Finastra has helped process more than 86,000 PPP loans to date , supporting community financial institutions in their quest to provide funding for local businesses and preserve jobs as many people live paycheck to paycheck .
“ I see this focus continuing into the next decade as the value that small businesses provide is increasingly recognised ,” Longo says .
“ The second change I see is that there will be diversification in services offered . Rather than going through traditional auto lending , we can now do digital retail lending .”
He adds , “ Whether that be microloans or BNPL services , or even payroll streamlining . All these services will overtake existing financial mechanisms to form a new financial environment .”
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