{ "version": "https://jsonfeed.org/version/1.1", "user_comment": "This feed allows you to read the posts from this site in any feed reader that supports the JSON Feed format. To add this feed to your reader, copy the following URL -- https://www.pymnts.com/category/credit-unions/feed/json/ -- and add it your reader.", "next_url": "https://www.pymnts.com/category/credit-unions/feed/json/?paged=2", "home_page_url": "https://www.pymnts.com/category/credit-unions/", "feed_url": "https://www.pymnts.com/category/credit-unions/feed/json/", "language": "en-US", "title": "Credit Unions Archives | PYMNTS.com", "description": "What's next in payments and commerce", "icon": "https://www.pymnts.com/wp-content/uploads/2022/11/cropped-PYMNTS-Icon-512x512-1.png", "items": [ { "id": "https://www.pymnts.com/?p=2686349", "url": "https://www.pymnts.com/credit-unions/2025/credit-unions-capitalize-on-consumer-trust-to-boost-growth/", "title": "Credit Unions Capitalize on Consumer Trust to Boost Growth", "content_html": "

For all financial institutions \u2014 and especially for credit unions \u2014 primary accounts are critical for the growth of the business.

\n

Primary accounts are the mainstays of banking, as they are the accounts where savings and checking activity are concentrated. The data accompanying the inflows of paychecks (in the case of individual banking clients), customer payments, and supplier payments (in the case of commercial activity) can be used by credit unions to craft new products and services.\u00a0

\n

These accounts also give banks the capital that they need to lend out into the community at large, with a multiplier effect that improves the financial standing of stakeholders well beyond the confines of the bank itself.\u00a0\u00a0 \u00a0\u00a0

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Fine-Tuning Digital Initiatives

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In the PYMNTS Intelligence report done in collaboration with Velera, \u201cThe Credit Union Advantage: Seven Trends Driving Future Growth\u201d we found that credit unions have been fine-tuning their approaches to digital innovation, which in turn attracts both consumers \u2014 especially younger consumers.\u00a0

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Those consumers are also business owners and entrepreneurs, so the potential is there for the bank to establish a duality of primary account: for both the individual\u2019s personal financial holdings and for the business accounts themselves.

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There\u2019s particular promise in engaging digitally with microbusinesses, which are the smallest corporate banking customers and which have the potential to grow into larger businesses, given access to capital and to the digital tools that help them manage their financial lives in real time (including with commercial cards).

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More CUs are forging ahead with mobile-centric rewards tied to those cards, digital payments and budgeting and transaction management offerings. The share of CUs with 10 or fewer branches taking a \u201claggard\u2019s\u201d approach to innovation decreased significantly to just 11% in 2024 from 47% two years earlier.

\n

We mentioned that consumers are also business owners: CUs have a 64% conversion rate of memberships to primary accounts among consumers, which indicates success in garnering the loyalty and dollars of those individuals.

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But only 7.7% of small businesses use CUs for their primary accounts, and 82% have never had contact with a credit union \u2014 so this is a greenfield opportunity, as another 7.7% of smaller firms (we surveyed 2,000 of them) have at least some relationship with a CU.

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The familiarity, combined with digital innovation, can conceivably get these smaller companies to switch their primary accounts to CUs. Twelve percent of the smallest firms, with $250,000 or less in annual revenues, opt to house their primary accounts within CUs \u2014 but 80% of them have never had accounts with credit unions.\u00a0

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What SMBs Want

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Some 55% of CUs plan to innovate self-service digital solutions, such as mobile banking and digital onboarding, within three years, so there\u2019s likely to be more digital innovation on the horizon.

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The data shows that top-performing CUs invest an average of 5.6% of their assets in innovation and have a member churn rate of 1.7%, compared to 3.1% investment and 3.3% churn among bottom performers. The less churn there is, the more likely it is that getting customers to move toward \u201cprimary account status.\u201d\u00a0

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The small businesses themselves offer up a roadmap: PYMNTS Intelligence and Velera found that 23.7% of smaller firms have conveyed that \u201cmust have\u201d features must include robust security offerings and 22% have said they want self-service solutions.

\n

The post Credit Unions Capitalize on Consumer Trust to Boost Growth appeared first on PYMNTS.com.

\n", "content_text": "For all financial institutions \u2014 and especially for credit unions \u2014 primary accounts are critical for the growth of the business.\nPrimary accounts are the mainstays of banking, as they are the accounts where savings and checking activity are concentrated. The data accompanying the inflows of paychecks (in the case of individual banking clients), customer payments, and supplier payments (in the case of commercial activity) can be used by credit unions to craft new products and services.\u00a0 \nThese accounts also give banks the capital that they need to lend out into the community at large, with a multiplier effect that improves the financial standing of stakeholders well beyond the confines of the bank itself.\u00a0\u00a0 \u00a0\u00a0\nFine-Tuning Digital Initiatives\nIn the PYMNTS Intelligence report done in collaboration with Velera, \u201cThe Credit Union Advantage: Seven Trends Driving Future Growth\u201d we found that credit unions have been fine-tuning their approaches to digital innovation, which in turn attracts both consumers \u2014 especially younger consumers.\u00a0 \nThose consumers are also business owners and entrepreneurs, so the potential is there for the bank to establish a duality of primary account: for both the individual\u2019s personal financial holdings and for the business accounts themselves.\nThere\u2019s particular promise in engaging digitally with microbusinesses, which are the smallest corporate banking customers and which have the potential to grow into larger businesses, given access to capital and to the digital tools that help them manage their financial lives in real time (including with commercial cards).\nMore CUs are forging ahead with mobile-centric rewards tied to those cards, digital payments and budgeting and transaction management offerings. The share of CUs with 10 or fewer branches taking a \u201claggard\u2019s\u201d approach to innovation decreased significantly to just 11% in 2024 from 47% two years earlier.\nWe mentioned that consumers are also business owners: CUs have a 64% conversion rate of memberships to primary accounts among consumers, which indicates success in garnering the loyalty and dollars of those individuals. \nBut only 7.7% of small businesses use CUs for their primary accounts, and 82% have never had contact with a credit union \u2014 so this is a greenfield opportunity, as another 7.7% of smaller firms (we surveyed 2,000 of them) have at least some relationship with a CU. \nThe familiarity, combined with digital innovation, can conceivably get these smaller companies to switch their primary accounts to CUs. Twelve percent of the smallest firms, with $250,000 or less in annual revenues, opt to house their primary accounts within CUs \u2014 but 80% of them have never had accounts with credit unions.\u00a0 \nWhat SMBs Want\nSome 55% of CUs plan to innovate self-service digital solutions, such as mobile banking and digital onboarding, within three years, so there\u2019s likely to be more digital innovation on the horizon. \nThe data shows that top-performing CUs invest an average of 5.6% of their assets in innovation and have a member churn rate of 1.7%, compared to 3.1% investment and 3.3% churn among bottom performers. The less churn there is, the more likely it is that getting customers to move toward \u201cprimary account status.\u201d\u00a0 \nThe small businesses themselves offer up a roadmap: PYMNTS Intelligence and Velera found that 23.7% of smaller firms have conveyed that \u201cmust have\u201d features must include robust security offerings and 22% have said they want self-service solutions. \nThe post Credit Unions Capitalize on Consumer Trust to Boost Growth appeared first on PYMNTS.com.", "date_published": "2025-04-17T04:00:23-04:00", "date_modified": "2025-04-16T21:55:01-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/credit-union-trust.jpg", "tags": [ "Commercial Cards", "corporate banking", "Credit Unions", "Digital Banking", "Featured News", "mobile cards", "News", "PYMNTS Intelligence", "PYMNTS News", "rewards cards", "Velera" ] }, { "id": "https://www.pymnts.com/?p=2686267", "url": "https://www.pymnts.com/credit-unions/2025/trump-fires-2-board-members-of-national-credit-union-administration/", "title": "Trump Fires 2 Board Members of National Credit Union Administration", "content_html": "

President Donald Trump fired two Democratic board members of the National Credit Union Administration (NCUA), leaving the board that traditionally has three members with just one member, Republican Chairman Kyle Hauptmann.

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Those who were fired are Todd Harper and Tanya Otsuka, Reuters reported Wednesday (April 16), citing separate statements from the two former board members.

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The report also cited White House Press Secretary Karoline Leavitt, who said, per the report, \u201cPresident Trump is the chief executive of the executive branch and reserves the right to fire anyone he wants.\u201d

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Harper was appointed to the NCUA by President Donald Trump in 2019 and was reconfirmed in 2022 to a term that was not due to expire until 2027, according to the report.

\n

He said in a statement, per the report: \u201cThis ill-conceived and politically motivated decision to fire me before the end of my term upsets that important regulatory balance and will harm consumers.\u201d

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Otsuka was nominated by then-President Joe Biden and confirmed by the Senate in 2023 and was serving a term that was to last until 2029, per the report.

\n

She said in a statement, per the report, that the firing is \u201cyet another attempt to undermine the rule of law and blatantly ignore Congress and our democratic values.\u201d

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Axios, which also reported on the firings of Harper and Otsuka, said that there are currently no Democrats on three boards of three regulators that were designed to be bipartisan: the NCUA, the Federal Deposit Insurance Corp. and the Federal Trade Commission.

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Sen. Elizabeth Warren, D-Mass., the ranking member of the Senate Banking Committee, released a statement Wednesday saying that the firings at the NCUA is part of a \u201ccontinued attack on American consumers.\u201d

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\u201cThis is the latest attempt by Trump to skirt the rule of law, undermine independent agencies and illegally purge the government of those who work for the American people,\u201d Warren said in her statement.

\n

The Financial Stability Oversight Council\u00a0said in December that the NCUA is one of the agencies that Congress should ensure have the examination and enforcement powers they need to oversee their regulated entities\u2019 third-party service providers.

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The post Trump Fires 2 Board Members of National Credit Union Administration appeared first on PYMNTS.com.

\n", "content_text": "President Donald Trump fired two Democratic board members of the National Credit Union Administration (NCUA), leaving the board that traditionally has three members with just one member, Republican Chairman Kyle Hauptmann.\nThose who were fired are Todd Harper and Tanya Otsuka, Reuters reported Wednesday (April 16), citing separate statements from the two former board members.\nThe report also cited White House Press Secretary Karoline Leavitt, who said, per the report, \u201cPresident Trump is the chief executive of the executive branch and reserves the right to fire anyone he wants.\u201d\nHarper was appointed to the NCUA by President Donald Trump in 2019 and was reconfirmed in 2022 to a term that was not due to expire until 2027, according to the report.\nHe said in a statement, per the report: \u201cThis ill-conceived and politically motivated decision to fire me before the end of my term upsets that important regulatory balance and will harm consumers.\u201d\nOtsuka was nominated by then-President Joe Biden and confirmed by the Senate in 2023 and was serving a term that was to last until 2029, per the report.\nShe said in a statement, per the report, that the firing is \u201cyet another attempt to undermine the rule of law and blatantly ignore Congress and our democratic values.\u201d\nAxios, which also reported on the firings of Harper and Otsuka, said that there are currently no Democrats on three boards of three regulators that were designed to be bipartisan: the NCUA, the Federal Deposit Insurance Corp. and the Federal Trade Commission.\nSen. Elizabeth Warren, D-Mass., the ranking member of the Senate Banking Committee, released a statement Wednesday saying that the firings at the NCUA is part of a \u201ccontinued attack on American consumers.\u201d\n\u201cThis is the latest attempt by Trump to skirt the rule of law, undermine independent agencies and illegally purge the government of those who work for the American people,\u201d Warren said in her statement.\nThe Financial Stability Oversight Council\u00a0said in December that the NCUA is one of the agencies that Congress should ensure have the examination and enforcement powers they need to oversee their regulated entities\u2019 third-party service providers.\nThe post Trump Fires 2 Board Members of National Credit Union Administration appeared first on PYMNTS.com.", "date_published": "2025-04-16T19:03:31-04:00", "date_modified": "2025-04-16T19:03:31-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/National-Credit-Union-Administration.jpg", "tags": [ "bank regulation", "Credit Unions", "Donald Trump", "elizabeth warren", "Kyle Hauptmann", "National Credit Union Administration", "News", "PYMNTS News", "regulation", "Tanya Otsuka", "Todd Harper", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2685380", "url": "https://www.pymnts.com/credit-unions/2025/velera-introduces-tiered-fraud-service-model-for-credit-unions/", "title": "Velera Introduces Tiered Fraud Service Model for Credit Unions", "content_html": "

Velera has introduced a tiered fraud service model approach that allows credit unions to select a tailored offering that meets their risk mitigation needs.

\n

The new Risk Mitigation Service Model is designed to accommodate credit unions\u2019 unique risk tolerances and needs, allow them to keep their existing products or risk solutions, and streamline service delivery, the credit union service organization (CUSO) formerly known as PSCU/Co-op Solutions said in a Tuesday (April 15) press release.

\n

\u201cOur new tiered approach empowers credit unions with flexible service offerings to engage with the Velera Risk Solutions team at a level that matches their organization\u2019s current and future needs as their tolerance shifts or changes in response to evolving fraud trends and threats,\u201d Velera Senior Vice President of Risk Solutions Karen Postma said in the release.

\n

The new Risk Mitigation Services Model includes three tiers, with each one building upon the offerings of the previous tier, according to the release.

\n

Essential provides 365 coverage, insight on fraud trends, daily support according to the organization\u2019s needs, and the establishment of global rules, the release said.

\n

Premier includes those offerings and adds a layer of elevated fraud prevention that includes an assigned analyst to collaborate on fraud trends and rule suggestions, and daily review of fraud cases, rules and recurring touch bases, per the release.

\n

The third tier, Enhanced, includes the offerings of the first two tiers and adds a dedicated risk consultant to manage the credit union\u2019s entire fraud experience.

\n

Customers that already have Velera fraud services will not need to take any action unless they want to change their service level.

\n

In a challenging fraud landscape, credit unions are adopting advanced technologies and forming strategic partnerships to protect their assets and educate their members to maintain trust, according to the PYMNTS Intelligence and Velera collaboration, \u201cScam Surge: How Credit Unions Are Tackling Rising Security Threats.\u201d

\n

The report found that in addition to investing in fraud detection/mitigation technology and educating their members about common scams, credit unions are forming partnerships to strengthen their defenses against fraud.

\n

Forty-two percent of credit unions prioritize fraud reduction when collaborating with FinTech companies, per the report.

\n

The post Velera Introduces Tiered Fraud Service Model for Credit Unions appeared first on PYMNTS.com.

\n", "content_text": "Velera has introduced a tiered fraud service model approach that allows credit unions to select a tailored offering that meets their risk mitigation needs.\nThe new Risk Mitigation Service Model is designed to accommodate credit unions\u2019 unique risk tolerances and needs, allow them to keep their existing products or risk solutions, and streamline service delivery, the credit union service organization (CUSO) formerly known as PSCU/Co-op Solutions said in a Tuesday (April 15) press release.\n\u201cOur new tiered approach empowers credit unions with flexible service offerings to engage with the Velera Risk Solutions team at a level that matches their organization\u2019s current and future needs as their tolerance shifts or changes in response to evolving fraud trends and threats,\u201d Velera Senior Vice President of Risk Solutions Karen Postma said in the release.\nThe new Risk Mitigation Services Model includes three tiers, with each one building upon the offerings of the previous tier, according to the release.\nEssential provides 365 coverage, insight on fraud trends, daily support according to the organization\u2019s needs, and the establishment of global rules, the release said.\nPremier includes those offerings and adds a layer of elevated fraud prevention that includes an assigned analyst to collaborate on fraud trends and rule suggestions, and daily review of fraud cases, rules and recurring touch bases, per the release.\nThe third tier, Enhanced, includes the offerings of the first two tiers and adds a dedicated risk consultant to manage the credit union\u2019s entire fraud experience.\nCustomers that already have Velera fraud services will not need to take any action unless they want to change their service level.\nIn a challenging fraud landscape, credit unions are adopting advanced technologies and forming strategic partnerships to protect their assets and educate their members to maintain trust, according to the PYMNTS Intelligence and Velera collaboration, \u201cScam Surge: How Credit Unions Are Tackling Rising Security Threats.\u201d\nThe report found that in addition to investing in fraud detection/mitigation technology and educating their members about common scams, credit unions are forming partnerships to strengthen their defenses against fraud.\nForty-two percent of credit unions prioritize fraud reduction when collaborating with FinTech companies, per the report.\nThe post Velera Introduces Tiered Fraud Service Model for Credit Unions appeared first on PYMNTS.com.", "date_published": "2025-04-15T18:39:05-04:00", "date_modified": "2025-04-15T18:39:05-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/Velera-credit-unions.jpg", "tags": [ "B2B", "B2B Payments", "commercial payments", "Credit Unions", "Fraud Prevention", "fraud risk", "News", "PYMNTS News", "risk management", "Risk Mitigation Service Model", "Velera", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=2683861", "url": "https://www.pymnts.com/credit-unions/2025/investifi-president-credit-unions-must-offer-digital-investing-to-retain-gen-z/", "title": "InvestiFi President: Credit Unions Must Offer Digital Investing to Retain Gen Z", "content_html": "

Banks, especially small banks such as credit unions and community banks, risk losing account holders to investing platforms.

\n

The checking and savings accounts housed in primary financial institutions (FIs) provide the on-ramps, so to speak, for individuals to take their money and invest it with the likes of Robinhood, particularly as cryptocurrencies become more mainstream alongside traditional equity trading.

\n

Todd Clark, newly named president and chief operating officer at digital investing platform InvestiFi told Karen Webster that consumers, especially young consumers, want to invest with their primary FIs. For forward-thinking banks that offer a seamless continuum between checking accounts and investment accounts, where the former funds the latter, as well as financial literacy education (to invest and save responsibly), the opportunity exists to expand their financial services ecosystems.

\n

\u201cThere are a lot of credit unions that already have investment solutions, but they are mostly advisory-based solutions,\u201d Clark said. \u201cYour typical advisor does not get involved with someone until they have $25,000, $30,000 or $50,000 in their account. But there are many people out there who are actively seeking pathways to invest $5,000 or $7,000, and they don\u2019t need an advisor. They want to do it on their own.\u201d

\n

That\u2019s why they move their money to Robinhood and SoFi.

\n

Expanding Beyond Crypto

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InvestiFi offers digital investing solutions to banks through a white-label platform that integrates with FIs\u2019 existing infrastructures, and FIs brand those services as their own.

\n

Clark\u2019s new tenure with the firm comes after a stint as CEO of CO-OP, which merged with PSCU, now Velera. His time on the board of InvestiFi came amid his taking a year off from full-time work in the wake of the merger.

\n

InvestiFi, for its part, has moved beyond its roots earlier this decade, enabling crypto trading to its status as an InvestTech platform that allows trading across a host of asset classes to be conducted from deposit accounts.

\n

\u201cWe\u2019re signing up a credit union or a community bank a week now,\u201d Clark said.

\n

For banks, the economics of the self-directed model are tied to the fact that customer funds are kept in-house.

\n

\u201cThe only time [the money] is not on the credit union balance sheet is when it is actually being held in a stock or in a crypto asset,\u201d Clark said. \u201c\u2026They see the money coming and going, rather than going [out to other investment platforms].\u201d

\n

Robinhood, for example, made $1 billion last year from the cash sitting in investment accounts, \u201cand we\u2019d rather see that cash sitting in credit unions and banks\u2019 accounts rather than at some party,\u201d Clark said. Core deposits, after all, are the least expensive deposits that FIs can have \u2014 and those deposits fund the rest of the business.

\n

Asked by Webster about the profile of the credit union that is embracing the platform, Clark said InvestiFi has the top 20 credit unions among its roster of customers but also has been signing up \u201c$150 million credit unions on the regular. The solution is easy to implement and to master. If they already have advisory services, we\u2019re helping them target the people with between $1,000 to $20,000 who want to open up an account, invest small dollar amounts, or experiment with crypto for the first time.\u201d

\n

That profile nearly encapsulates young banking customers \u2014 millennials and Generation Z \u2014 who expect a digital, app-driven experience.

\n

InvestiFi\u2019s roadmap includes expanding the securities trading functions that were launched last fall and the robo advisor that debuted this year. The company will also be moving to IRAs.

\n

\u201cWe\u2019re spending a lot of time with connections to banks\u2019 cores and will continue to build out our platform,\u201d he said.

\n

There\u2019s also the potential to offer leads to brokers that are already connected to credit unions in what Clark said, \u201cis a partnership with them, and not a competitive environment.\u201d In the meantime, there are training and financial education videos embedded within the platform and solutions extended to end users.

\n

The potential is vast, as there are thousands of credit unions still to be connected to InvestiFi\u2019s platform, which can scale easily as volume and processing demands, he said.

\n

\u201cThe vast majority of people would like to invest like this with their credit union,\u201d said Clark, who told Webster, \u201cThere\u2019s a huge component of trust with those banks \u2026 we\u2019re here to stay.\u201d

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For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.

\n

The post InvestiFi President: Credit Unions Must Offer Digital Investing to Retain Gen Z appeared first on PYMNTS.com.

\n", "content_text": "Banks, especially small banks such as credit unions and community banks, risk losing account holders to investing platforms.\nThe checking and savings accounts housed in primary financial institutions (FIs) provide the on-ramps, so to speak, for individuals to take their money and invest it with the likes of Robinhood, particularly as cryptocurrencies become more mainstream alongside traditional equity trading.\nTodd Clark, newly named president and chief operating officer at digital investing platform InvestiFi told Karen Webster that consumers, especially young consumers, want to invest with their primary FIs. For forward-thinking banks that offer a seamless continuum between checking accounts and investment accounts, where the former funds the latter, as well as financial literacy education (to invest and save responsibly), the opportunity exists to expand their financial services ecosystems.\n\u201cThere are a lot of credit unions that already have investment solutions, but they are mostly advisory-based solutions,\u201d Clark said. \u201cYour typical advisor does not get involved with someone until they have $25,000, $30,000 or $50,000 in their account. But there are many people out there who are actively seeking pathways to invest $5,000 or $7,000, and they don\u2019t need an advisor. They want to do it on their own.\u201d\nThat\u2019s why they move their money to Robinhood and SoFi.\nExpanding Beyond Crypto\nInvestiFi offers digital investing solutions to banks through a white-label platform that integrates with FIs\u2019 existing infrastructures, and FIs brand those services as their own.\nClark\u2019s new tenure with the firm comes after a stint as CEO of CO-OP, which merged with PSCU, now Velera. His time on the board of InvestiFi came amid his taking a year off from full-time work in the wake of the merger.\nInvestiFi, for its part, has moved beyond its roots earlier this decade, enabling crypto trading to its status as an InvestTech platform that allows trading across a host of asset classes to be conducted from deposit accounts.\n\u201cWe\u2019re signing up a credit union or a community bank a week now,\u201d Clark said.\nFor banks, the economics of the self-directed model are tied to the fact that customer funds are kept in-house.\n\u201cThe only time [the money] is not on the credit union balance sheet is when it is actually being held in a stock or in a crypto asset,\u201d Clark said. \u201c\u2026They see the money coming and going, rather than going [out to other investment platforms].\u201d\nRobinhood, for example, made $1 billion last year from the cash sitting in investment accounts, \u201cand we\u2019d rather see that cash sitting in credit unions and banks\u2019 accounts rather than at some party,\u201d Clark said. Core deposits, after all, are the least expensive deposits that FIs can have \u2014 and those deposits fund the rest of the business.\nAsked by Webster about the profile of the credit union that is embracing the platform, Clark said InvestiFi has the top 20 credit unions among its roster of customers but also has been signing up \u201c$150 million credit unions on the regular. The solution is easy to implement and to master. If they already have advisory services, we\u2019re helping them target the people with between $1,000 to $20,000 who want to open up an account, invest small dollar amounts, or experiment with crypto for the first time.\u201d\nThat profile nearly encapsulates young banking customers \u2014 millennials and Generation Z \u2014 who expect a digital, app-driven experience.\nInvestiFi\u2019s roadmap includes expanding the securities trading functions that were launched last fall and the robo advisor that debuted this year. The company will also be moving to IRAs.\n\u201cWe\u2019re spending a lot of time with connections to banks\u2019 cores and will continue to build out our platform,\u201d he said.\nThere\u2019s also the potential to offer leads to brokers that are already connected to credit unions in what Clark said, \u201cis a partnership with them, and not a competitive environment.\u201d In the meantime, there are training and financial education videos embedded within the platform and solutions extended to end users.\nThe potential is vast, as there are thousands of credit unions still to be connected to InvestiFi\u2019s platform, which can scale easily as volume and processing demands, he said.\n\u201cThe vast majority of people would like to invest like this with their credit union,\u201d said Clark, who told Webster, \u201cThere\u2019s a huge component of trust with those banks \u2026 we\u2019re here to stay.\u201d\nFor all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.\nThe post InvestiFi President: Credit Unions Must Offer Digital Investing to Retain Gen Z appeared first on PYMNTS.com.", "date_published": "2025-04-15T04:03:44-04:00", "date_modified": "2025-04-14T22:19:21-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/InvestiFI-crypto.jpg", "tags": [ "banking", "Banks", "Credit Unions", "digital transformation", "Featured News", "financial inclusion", "Generation Z", "InvestiFi", "Investments", "Millennials", "News", "PYMNTS News", "pymnts tv", "Todd Clark", "video" ] }, { "id": "https://www.pymnts.com/?post_type=tracker_posts&p=2539163", "url": "https://www.pymnts.com/tracker_posts/from-aging-to-z-how-cus-can-capture-younger-generations/", "title": "From Aging to Z: How CUs Can Capture Younger Generations", "content_html": "

Credit unions (CUs) face a generational challenge. Their membership is aging faster than the customer base of other financial institutions (FIs), leaving their futures uncertain. Many millennial and Generation Z consumers are opting for digital-first banks over credit unions. For CUs, capturing younger generations isn\u2019t just about survival. It\u2019s also about maintaining relevance in a rapidly evolving financial landscape.

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Unquestionably, winning over younger members demands digital innovation and mobile-driven strategies. However, research suggests that it also requires targeted outreach toward digital natives, who may be less aware of credit unions as a banking option. In fact, digital-first strategies \u2014 essential as they are \u2014 may not be sufficient to convert a new generation of consumers without meeting them in the channels they frequent. Critically, credit unions that both innovate and communicate their advantages to younger generations could avoid ceding further ground to other FIs in capturing these key demographics.

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CUs Face Aging Membership as Gen Z Leans Toward Banks

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Credit union members skew older than bank customers, with baby boomers outnumbering millennials and Gen Z combined. Attracting younger members is vital to long-term CU viability and growth.

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CUs risk losing ground with younger generations as boomers dominate membership.

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According to McKinsey, baby boomers now make up 39% of CU membership \u2014 up from 28% in 2015 \u2014 while millennials and Gen Z account for just 31% combined. Meanwhile, Filene Research Institute finds that the average CU member age is 53, significantly older than the United States average age of 38.5. Banks now serve as the primary FIs for most younger consumers, signaling a growing gap that CUs must close to stay competitive.

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39%

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of CU members are baby boomers, compared to just 29% of bank customers.

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CU leaders agree that Gen Z engagement is critical but unevenly executed.

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CULytics data indicates that while 80% of CU leaders see attracting younger members as \u201cextremely important,\u201d only 40% report real traction with this consumer segment \u2014 highlighting uneven progress across the sector. Without addressing this imbalance, CUs risk significant market share erosion as older members retire and their borrowing needs decrease. Banks attract younger consumers by offering seamless mobile experiences and simplified onboarding \u2014 areas where many credit unions still lag. However, PYMNTS Intelligence and other research identifies an even more basic explanation for the trend: a lack of Gen Z familiarity with credit unions.
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Unfamiliarity Keeps Gen Z From Joining CUs

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Gen Z lags behind older consumers in credit union engagement, with a lack of familiarity posing a key obstacle to membership for this demographic.

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A large portion of Gen Zers are unaware of CUs as a banking option.

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20%

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of Gen Z consumers have engaged with a CU, compared to 33% of baby boomers.

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According to research from Apiture and The Harris Poll, a significant hurdle to Gen Z engagement for CUs is simply one of communication. Nearly one-third (30%) of Gen Z consumers don\u2019t know that CU membership is an option. Historically, CU outreach relied heavily on traditional marketing channels that Gen Z seldom uses, deepening the familiarity gap. This finding confirms earlier PYMNTS Intelligence data showing that only 20% of Gen Zers have had some contact with a CU, compared to 33% of baby boomers. Pivotally, Gen Z consumers are 53% more likely than baby boomers to cite lack of familiarity with CUs as a reason for not joining.

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To remedy this, digital discovery and embedded banking can expand CUs\u2019 reach with Gen Z. Many Gen Zers expect fast, branch-free account setup. Embedded banking \u2014 such as offering account opening via college portals \u2014 can help CUs meet digital expectations and reach younger users where they already are.

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Targeting youth early can help close generational gaps.

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One specific strategy CUs are taking to bridge generational gaps is by rolling out new tools for kids and teens to build brand familiarity early. Kachinga\u2019s white-labeled app, for instance, directly integrates with credit unions\u2019 core systems to offer family-friendly financial tools that teach budgeting and saving. In addition, initiatives like Credit Union Youth Month \u2014 ongoing every April \u2014 reinforce these strategies, aiming to build loyalty from childhood on and ensure long-term membership stability.

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A FinTech-CUSO partnership aims to convert Gen Z borrowers into lifelong CU members.

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Another effective strategy for reaching younger consumers is to develop solutions targeting their specific needs and concerns. Credit union service organization (CUSO) Envisant\u2019s new partnership with FinTech Sparrow, for example, helps its client CUs address Gen Z\u2019s student loan challenges. The initiative offers fast onboarding and tailored support for younger borrowers.

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Notably, 70% of users engaging via CU channels were nonmembers who later expressed interest in joining, signaling a clear path to membership growth. With Gen Z representing one of the largest and most influential emerging demographics, strategically targeting this segment can substantially increase its engagement. However, solutions such as these also showcase the first necessity of engaging younger members: meeting these consumers\u2019 digital-first expectations.
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Digital Features Drive Gen Z\u2019s Expectations

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Gen Z expects fast, mobile-first financial tools. Credit unions looking to stay competitive must offer the digital payments, seamless authentication and app-based credit card management these consumers demand.

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Gen Z expects always-on, intuitive digital banking experiences.

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Generational outreach, of course, must go hand in hand with digital innovation to meet younger consumers\u2019 expectations. More than half of Gen Z and millennial consumers rank modern digital tools as their top requirement when choosing an FI. Eight in 10 say digital banking is central to their experience. Their frequent use of peer-to-peer (P2P) payments, budgeting tools and credit monitoring reflects high expectations for 24/7 digital access.

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21%

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of Gen Z consumers want mobile card management apps from their FIs \u2014 more than any other innovation.

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CUs still struggle with digital experience and loyalty-building for younger members.

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In the CULytics survey, all CU leaders cited seamless digital experience and FinTech competition as top challenges. Sixty percent also pointed to difficulty building loyalty and engagement with Gen Z and millennials, highlighting the broader strategic gaps credit unions must address to attract and retain younger members.

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In fact, Gen Zers appear to see more value in banks as their digital expectations grow. Just 49% of Gen Z credit union members say their CU offers strong value, compared to 60% at big banks. As digital demands rise, younger consumers increasingly associate value with mobile features, seamless authentication and spending control \u2014 areas where banks are pulling ahead of many CUs. FinTech companies and digital banks already excel in these mobile innovations, only adding to the pressure on credit unions to act swiftly.

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Velera is simplifying card updates to streamline digital payments for CUs.

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As in the earlier Envisant-Sparrow example, credit unions can gain a leg up in digital innovation by tapping into CUSOs and other third-party solutions. Velera\u2019s new Card on File feature, for example, allows CU members to update payment credentials across more than 115 merchants in one step. This feature removes friction from digital payments, boosts card usage and helps credit unions meet Gen Z\u2019s expectations for seamless, app-based financial experiences. Mobile-first solutions not only satisfy Gen Z\u2019s need for convenience but also offer greater security and real-time financial control \u2014 features crucial to younger users.
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How Credit Unions Can Stay Relevant

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Younger generations invariably demand seamless, mobile-first financial experiences, so credit unions must urgently modernize digital offerings. However, modernization alone could still fail to engage younger consumers who remain largely unaware of credit unions as an option. CUs must therefore tailor outreach strategies to meet Gen Z and other younger age groups on familiar platforms.

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PYMNTS Intelligence offers the following strategic roadmap for CUs to preserve relevance and expand membership with younger generations:

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Credit unions that take proactive steps to meet the expectations of digital natives and effectively convey their value can build lasting loyalty with younger generations.

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\"Joan
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Winning the loyalty of younger consumers begins with building lifelong relationships. Supporting members at every stage of their financial journey is key \u2014 from their first checking account in college to buying their first home or saving for their child\u2019s future. It starts with meeting younger members where they are \u2014 digitally. By offering instant digital cards, rebranding checking accounts as spending accounts, and providing rewards on things they already use like food delivery and streaming services, we\u2019re making sure we\u2019re at the front of their wallet and the center of every financial milestone.\u201d

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Joan Opp
\nPresident and CEO, Stanford Federal Credit Union
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The post From Aging to Z: How CUs Can Capture Younger Generations appeared first on PYMNTS.com.

\n", "content_text": "Credit unions (CUs) face a generational challenge. Their membership is aging faster than the customer base of other financial institutions (FIs), leaving their futures uncertain. Many millennial and Generation Z consumers are opting for digital-first banks over credit unions. For CUs, capturing younger generations isn\u2019t just about survival. It\u2019s also about maintaining relevance in a rapidly evolving financial landscape.\nUnquestionably, winning over younger members demands digital innovation and mobile-driven strategies. However, research suggests that it also requires targeted outreach toward digital natives, who may be less aware of credit unions as a banking option. In fact, digital-first strategies \u2014 essential as they are \u2014 may not be sufficient to convert a new generation of consumers without meeting them in the channels they frequent. Critically, credit unions that both innovate and communicate their advantages to younger generations could avoid ceding further ground to other FIs in capturing these key demographics.\n\n CUs Face Aging Membership as Gen Z Leans Toward Banks\n Unfamiliarity Keeps Gen Z From Joining CUs\n Digital Features Drive Gen Z\u2019s Expectations\n How Credit Unions Can Stay Relevant\n\n[branded_divider]\nCUs Face Aging Membership as Gen Z Leans Toward Banks\nCredit union members skew older than bank customers, with baby boomers outnumbering millennials and Gen Z combined. Attracting younger members is vital to long-term CU viability and growth.\n\n\n\nCUs risk losing ground with younger generations as boomers dominate membership.\nAccording to McKinsey, baby boomers now make up 39% of CU membership \u2014 up from 28% in 2015 \u2014 while millennials and Gen Z account for just 31% combined. Meanwhile, Filene Research Institute finds that the average CU member age is 53, significantly older than the United States average age of 38.5. Banks now serve as the primary FIs for most younger consumers, signaling a growing gap that CUs must close to stay competitive.\n\n\n39%\nof CU members are baby boomers, compared to just 29% of bank customers.\n\n\n\nCU leaders agree that Gen Z engagement is critical but unevenly executed.\nCULytics data indicates that while 80% of CU leaders see attracting younger members as \u201cextremely important,\u201d only 40% report real traction with this consumer segment \u2014 highlighting uneven progress across the sector. Without addressing this imbalance, CUs risk significant market share erosion as older members retire and their borrowing needs decrease. Banks attract younger consumers by offering seamless mobile experiences and simplified onboarding \u2014 areas where many credit unions still lag. However, PYMNTS Intelligence and other research identifies an even more basic explanation for the trend: a lack of Gen Z familiarity with credit unions.\n[branded_divider]\nUnfamiliarity Keeps Gen Z From Joining CUs\nGen Z lags behind older consumers in credit union engagement, with a lack of familiarity posing a key obstacle to membership for this demographic.\nA large portion of Gen Zers are unaware of CUs as a banking option.\n\n\n\n20%\nof Gen Z consumers have engaged with a CU, compared to 33% of baby boomers.\n\n\nAccording to research from Apiture and The Harris Poll, a significant hurdle to Gen Z engagement for CUs is simply one of communication. Nearly one-third (30%) of Gen Z consumers don\u2019t know that CU membership is an option. Historically, CU outreach relied heavily on traditional marketing channels that Gen Z seldom uses, deepening the familiarity gap. This finding confirms earlier PYMNTS Intelligence data showing that only 20% of Gen Zers have had some contact with a CU, compared to 33% of baby boomers. Pivotally, Gen Z consumers are 53% more likely than baby boomers to cite lack of familiarity with CUs as a reason for not joining.\n\n\n\nTo remedy this, digital discovery and embedded banking can expand CUs\u2019 reach with Gen Z. Many Gen Zers expect fast, branch-free account setup. Embedded banking \u2014 such as offering account opening via college portals \u2014 can help CUs meet digital expectations and reach younger users where they already are.\nTargeting youth early can help close generational gaps.\nOne specific strategy CUs are taking to bridge generational gaps is by rolling out new tools for kids and teens to build brand familiarity early. Kachinga\u2019s white-labeled app, for instance, directly integrates with credit unions\u2019 core systems to offer family-friendly financial tools that teach budgeting and saving. In addition, initiatives like Credit Union Youth Month \u2014 ongoing every April \u2014 reinforce these strategies, aiming to build loyalty from childhood on and ensure long-term membership stability.\nA FinTech-CUSO partnership aims to convert Gen Z borrowers into lifelong CU members.\nAnother effective strategy for reaching younger consumers is to develop solutions targeting their specific needs and concerns. Credit union service organization (CUSO) Envisant\u2019s new partnership with FinTech Sparrow, for example, helps its client CUs address Gen Z\u2019s student loan challenges. The initiative offers fast onboarding and tailored support for younger borrowers.\nNotably, 70% of users engaging via CU channels were nonmembers who later expressed interest in joining, signaling a clear path to membership growth. With Gen Z representing one of the largest and most influential emerging demographics, strategically targeting this segment can substantially increase its engagement. However, solutions such as these also showcase the first necessity of engaging younger members: meeting these consumers\u2019 digital-first expectations.\n[branded_divider]\nDigital Features Drive Gen Z\u2019s Expectations\nGen Z expects fast, mobile-first financial tools. Credit unions looking to stay competitive must offer the digital payments, seamless authentication and app-based credit card management these consumers demand.\n\n\n\nGen Z expects always-on, intuitive digital banking experiences.\nGenerational outreach, of course, must go hand in hand with digital innovation to meet younger consumers\u2019 expectations. More than half of Gen Z and millennial consumers rank modern digital tools as their top requirement when choosing an FI. Eight in 10 say digital banking is central to their experience. Their frequent use of peer-to-peer (P2P) payments, budgeting tools and credit monitoring reflects high expectations for 24/7 digital access.\n\n\n21%\nof Gen Z consumers want mobile card management apps from their FIs \u2014 more than any other innovation.\n\n\n\nCUs still struggle with digital experience and loyalty-building for younger members.\nIn the CULytics survey, all CU leaders cited seamless digital experience and FinTech competition as top challenges. Sixty percent also pointed to difficulty building loyalty and engagement with Gen Z and millennials, highlighting the broader strategic gaps credit unions must address to attract and retain younger members.\nIn fact, Gen Zers appear to see more value in banks as their digital expectations grow. Just 49% of Gen Z credit union members say their CU offers strong value, compared to 60% at big banks. As digital demands rise, younger consumers increasingly associate value with mobile features, seamless authentication and spending control \u2014 areas where banks are pulling ahead of many CUs. FinTech companies and digital banks already excel in these mobile innovations, only adding to the pressure on credit unions to act swiftly.\nVelera is simplifying card updates to streamline digital payments for CUs.\nAs in the earlier Envisant-Sparrow example, credit unions can gain a leg up in digital innovation by tapping into CUSOs and other third-party solutions. Velera\u2019s new Card on File feature, for example, allows CU members to update payment credentials across more than 115 merchants in one step. This feature removes friction from digital payments, boosts card usage and helps credit unions meet Gen Z\u2019s expectations for seamless, app-based financial experiences. Mobile-first solutions not only satisfy Gen Z\u2019s need for convenience but also offer greater security and real-time financial control \u2014 features crucial to younger users.\n[branded_divider]\nHow Credit Unions Can Stay Relevant\nYounger generations invariably demand seamless, mobile-first financial experiences, so credit unions must urgently modernize digital offerings. However, modernization alone could still fail to engage younger consumers who remain largely unaware of credit unions as an option. CUs must therefore tailor outreach strategies to meet Gen Z and other younger age groups on familiar platforms.\nPYMNTS Intelligence offers the following strategic roadmap for CUs to preserve relevance and expand membership with younger generations:\n\nPrioritize competitive digital innovation. This includes mobile functionality, biometric authentication and spending controls. Align CU digital offerings with \u2014 or surpass \u2014 those of FinTech and bank competitors to attract younger users who increasingly equate digital excellence with value.\nInnovate solutions aimed directly at younger consumers. Introduce mobile-driven tools like card management apps, embedded account opening and automated payment credential updates. These solutions offer the security and convenience younger consumers expect. Consider developing solutions that solve generation-specific challenges, such as student lending.\nTarget informational outreach toward key demographics. Launch campaigns via digital channels, partnerships with FinTech providers and educational institutions to enhance Gen Z awareness. Strategic outreach efforts represent high-impact investments for long-term membership growth.\n\nCredit unions that take proactive steps to meet the expectations of digital natives and effectively convey their value can build lasting loyalty with younger generations.\n\n\n\n\n\nWinning the loyalty of younger consumers begins with building lifelong relationships. Supporting members at every stage of their financial journey is key \u2014 from their first checking account in college to buying their first home or saving for their child\u2019s future. It starts with meeting younger members where they are \u2014 digitally. By offering instant digital cards, rebranding checking accounts as spending accounts, and providing rewards on things they already use like food delivery and streaming services, we\u2019re making sure we\u2019re at the front of their wallet and the center of every financial milestone.\u201d\nJoan Opp\nPresident and CEO, Stanford Federal Credit Union\n\n\nThe post From Aging to Z: How CUs Can Capture Younger Generations appeared first on PYMNTS.com.", "date_published": "2025-04-14T04:03:52-04:00", "date_modified": "2025-04-13T21:39:18-04:00", "authors": [ { "name": "Ashley McLeod", "url": "https://www.pymnts.com/author/amcleod/", "avatar": "https://secure.gravatar.com/avatar/0fedd2839008e3cc5e26e50a9f4f7224418de88f0793ec3ea89238c880fb86de?s=512&d=blank&r=g" } ], "author": { "name": "Ashley McLeod", "url": "https://www.pymnts.com/author/amcleod/", "avatar": "https://secure.gravatar.com/avatar/0fedd2839008e3cc5e26e50a9f4f7224418de88f0793ec3ea89238c880fb86de?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/03/how-CUs-can-capture-younger-generations-hero.jpg", "tags": [ "Credit Unions", "Featured News", "News", "PYMNTS Intelligence", "PYMNTS News", "Tracker Series", "Velera" ] }, { "id": "https://www.pymnts.com/?p=2682212", "url": "https://www.pymnts.com/credit-unions/2025/credit-unions-convert-64-percent-of-members-to-primary-accounts/", "title": "Credit Unions Convert 64% of Members to Primary Accounts", "content_html": "

Once perceived as technologically trailing larger financial institutions, credit unions are embracing digital innovation, positioning themselves for growth and engagement with a digitally native consumer base, according to a new report.

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The \u201cCredit Union Advantage: Seven Trends Driving Future Growth,\u201d a collaboration between PYMNTS Intelligence and Velera, paints a picture of a sector adapting to the demands of members and small businesses. By investing in digital capabilities and focusing on areas like self-service and mobile engagement, credit unions are fortifying their existing member relationships and laying the groundwork to attract the coveted younger generation.

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\"\"

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The report surveys credit union executives, consumers, and small to mid-sized businesses, revealing seven trends that underscore the sector\u2019s dynamism. Credit unions, including smaller institutions, are demonstrating a shift toward innovation, a departure from previous perceptions.

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This surge in innovation is coupled with an ability to cultivate primary account relationships, indicating a strong foundation upon which to build enhanced digital experiences. Furthermore, investments in technology and member experience are proving to be directly correlated with stronger member retention, highlighting the tangible benefits of this digital transformation.

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Key data points underscore the digital focus among credit unions:

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Beyond these digital-centric trends, the report highlights other compelling advantages for credit unions. Notably, they boast a 64% conversion rate of memberships to primary accounts among consumers, demonstrating a deep level of trust and engagement.

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Moreover,\u00a0microbusinesses show a greater inclination to use credit unions as their primary financial institution, with 12% reporting them as their main FI.

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Perhaps most significantly, the data reveals that top-performing credit unions, those investing an average of 5.6% of their assets in innovation, experience a lower member churn rate of 1.7%, compared to bottom performers with a 3.1% investment and a 3.3% churn rate. These figures underscore the wisdom of investment in innovation and member experience as drivers of long-term success for credit unions.

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The post Credit Unions Convert 64% of Members to Primary Accounts appeared first on PYMNTS.com.

\n", "content_text": "Once perceived as technologically trailing larger financial institutions, credit unions are embracing digital innovation, positioning themselves for growth and engagement with a digitally native consumer base, according to a new report. \nThe \u201cCredit Union Advantage: Seven Trends Driving Future Growth,\u201d a collaboration between PYMNTS Intelligence and Velera, paints a picture of a sector adapting to the demands of members and small businesses. By investing in digital capabilities and focusing on areas like self-service and mobile engagement, credit unions are fortifying their existing member relationships and laying the groundwork to attract the coveted younger generation.\n\nThe report surveys credit union executives, consumers, and small to mid-sized businesses, revealing seven trends that underscore the sector\u2019s dynamism. Credit unions, including smaller institutions, are demonstrating a shift toward innovation, a departure from previous perceptions. \nThis surge in innovation is coupled with an ability to cultivate primary account relationships, indicating a strong foundation upon which to build enhanced digital experiences. Furthermore, investments in technology and member experience are proving to be directly correlated with stronger member retention, highlighting the tangible benefits of this digital transformation.\nKey data points underscore the digital focus among credit unions:\n\nFifty-five percent of credit unions are planning to innovate self-service digital solutions like mobile banking and digital onboarding within the next three years, recognizing the importance of meeting member expectations for digital interactions.\nLarger credit unions are leveraging partnerships to accelerate their innovation agendas. Those with over $5 billion in assets are, on average, developing 8.4 products and features either fully or partially through collaborations with third parties, indicating a willingness to embrace external expertise to enhance their digital offerings.\nCredit unions are keenly aware of the need to cater to younger demographics, with\u00a021% of Generation Z consumers identifying mobile credit card management apps as a priority innovation, signaling a clear demand for sophisticated mobile-driven features.\n\nBeyond these digital-centric trends, the report highlights other compelling advantages for credit unions. Notably, they boast a 64% conversion rate of memberships to primary accounts among consumers, demonstrating a deep level of trust and engagement. \nMoreover,\u00a0microbusinesses show a greater inclination to use credit unions as their primary financial institution, with 12% reporting them as their main FI. \nPerhaps most significantly, the data reveals that top-performing credit unions, those investing an average of 5.6% of their assets in innovation, experience a lower member churn rate of 1.7%, compared to bottom performers with a 3.1% investment and a 3.3% churn rate. These figures underscore the wisdom of investment in innovation and member experience as drivers of long-term success for credit unions.\nThe post Credit Unions Convert 64% of Members to Primary Accounts appeared first on PYMNTS.com.", "date_published": "2025-04-11T04:00:54-04:00", "date_modified": "2025-04-10T21:00:32-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/credit-union-1.jpg", "tags": [ "Credit Unions", "data point", "digital transformation", "Featured News", "News", "PYMNTS Intelligence", "PYMNTS News", "The Data Point", "Velera" ] }, { "id": "https://www.pymnts.com/?p=2573674", "url": "https://www.pymnts.com/credit-unions/2025/credit-unions-prove-spending-control-drives-top-of-wallet-success/", "title": "Credit Unions Prove Spending Control Drives Top-of-Wallet Success", "content_html": "

Credit unions (CUs) are proving their competitive strength in the evolving financial landscape, particularly in rural areas and among Gen Z consumers. With a remarkable 71% top-of-wallet conversion rate among small-town and rural small and medium-sized businesses (SMBs), CUs are emerging as serious contenders against national and digital-only banks. This report dives into what\u2019s fueling their success \u2014 and where challenges remain.

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While financial incentives remain the top reason consumers and businesses choose a primary payment card, many CU cardholders prioritize spending control tools over cash back or lower interest rates. With 20% of CU users citing these features as a key decision-making factor \u2014 25% more than national and digital-only bank users \u2014 it\u2019s clear that financial management capabilities are a growing differentiator.

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Yet despite these strengths, CUs may be leaving some opportunities on the table. High-income consumers and millennials are less likely to put their CU-issued cards at the top of their wallets, and rewards programs offered by national and digital-only banks continue to draw consumers away. So, how can CUs bridge the gap?

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In \u201cCredit Union Innovation Readiness Index: The Path to Top-of-Wallet Conversion,\u201d a PYMNTS Intelligence and Velera collaboration, we surveyed 12,081 U.S. consumers and 2,000 U.S. SMBs to understand their card usage and the factors influencing their top-of-wallet card choices.

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Inside the Playbook:

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This report paints a clear picture: Credit unions have a unique opportunity to expand their influence by building on their strengths. Their high top-of-wallet conversion rates among Gen Z and rural SMBs prove consumers value more than just rewards \u2014 they appreciate financial control. However, to stay competitive, CUs must refine their offerings for high-income earners and millennials, who are more likely to be swayed by premium rewards and digital-first experiences.

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By improving incentive programs, enhancing digital tools and refining their outreach strategies, CUs can elevate their position in the financial services industry. Dive into the full report to uncover actionable insights to drive top-of-wallet success for credit unions in 2025 and beyond.

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\n \n Download the Playbook\n \n Credit Union Innovation Readiness Index: The Path to Top-of-Wallet Conversion\n

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About the Credit Union Innovation Readiness Index

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The \u201cCredit Union Innovation Readiness Index: The Path to Top-of-Wallet Conversion,\u201d\u00a0a PYMNTS Intelligence and Velera (formerly PSCU/Co-op Solutions) collaboration, examines consumer and SMB CU card usage and the factors influencing their top-of-wallet card choices. The playbook is based on a census-balanced survey of 12,081 U.S. consumers conducted from Oct. 21, 2024, to Nov. 20, 2024. This study was complemented by a survey of 2,000 small to medium-sized businesses (SMBs), which was conducted from Oct. 23, 2024, to Nov. 20, 2024.

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The post Credit Unions Prove Spending Control Drives Top-of-Wallet Success appeared first on PYMNTS.com.

\n", "content_text": "Credit unions (CUs) are proving their competitive strength in the evolving financial landscape, particularly in rural areas and among Gen Z consumers. With a remarkable 71% top-of-wallet conversion rate among small-town and rural small and medium-sized businesses (SMBs), CUs are emerging as serious contenders against national and digital-only banks. This report dives into what\u2019s fueling their success \u2014 and where challenges remain.\nWhile financial incentives remain the top reason consumers and businesses choose a primary payment card, many CU cardholders prioritize spending control tools over cash back or lower interest rates. With 20% of CU users citing these features as a key decision-making factor \u2014 25% more than national and digital-only bank users \u2014 it\u2019s clear that financial management capabilities are a growing differentiator.\nYet despite these strengths, CUs may be leaving some opportunities on the table. High-income consumers and millennials are less likely to put their CU-issued cards at the top of their wallets, and rewards programs offered by national and digital-only banks continue to draw consumers away. So, how can CUs bridge the gap?\nIn \u201cCredit Union Innovation Readiness Index: The Path to Top-of-Wallet Conversion,\u201d a PYMNTS Intelligence and Velera collaboration, we surveyed 12,081 U.S. consumers and 2,000 U.S. SMBs to understand their card usage and the factors influencing their top-of-wallet card choices.\nInside the Playbook:\n\nAnalyze how CUs achieve higher top-of-wallet conversion rates among SMBs and Gen Z than their competitors.\nUncover the unique motivations behind CU cardholders\u2019 choices, including the importance of spending control tools.\nExplore how consumers and SMBs use CU-issued cards most often for essential purchases, like groceries for consumers and operational costs for SMBs.\nDiscover why high-income consumers and millennials are less likely to prioritize CU cards and what CUs can do to reverse this trend.\nExamine strategies that CUs can implement to enhance their rewards programs and better compete with national banks and digital-only players.\n\nThis report paints a clear picture: Credit unions have a unique opportunity to expand their influence by building on their strengths. Their high top-of-wallet conversion rates among Gen Z and rural SMBs prove consumers value more than just rewards \u2014 they appreciate financial control. However, to stay competitive, CUs must refine their offerings for high-income earners and millennials, who are more likely to be swayed by premium rewards and digital-first experiences.\nBy improving incentive programs, enhancing digital tools and refining their outreach strategies, CUs can elevate their position in the financial services industry. Dive into the full report to uncover actionable insights to drive top-of-wallet success for credit unions in 2025 and beyond.\n\n\n \n \n \n \n \n \n \n Download the Playbook\n \n Credit Union Innovation Readiness Index: The Path to Top-of-Wallet Conversion\n \n \n \n \n \n \n [contact-form-7]\n \n \n \n \n \n\nAbout the Credit Union Innovation Readiness Index\nThe \u201cCredit Union Innovation Readiness Index: The Path to Top-of-Wallet Conversion,\u201d\u00a0a PYMNTS Intelligence and Velera (formerly PSCU/Co-op Solutions) collaboration, examines consumer and SMB CU card usage and the factors influencing their top-of-wallet card choices. The playbook is based on a census-balanced survey of 12,081 U.S. consumers conducted from Oct. 21, 2024, to Nov. 20, 2024. This study was complemented by a survey of 2,000 small to medium-sized businesses (SMBs), which was conducted from Oct. 23, 2024, to Nov. 20, 2024.\nThe post Credit Unions Prove Spending Control Drives Top-of-Wallet Success appeared first on PYMNTS.com.", "date_published": "2025-04-08T04:03:56-04:00", "date_modified": "2025-04-17T12:51:17-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/credit-unions-win-big-with-gen-z-struggle-with-millennials.jpg", "tags": [ "Credit Unions", "Featured News", "News", "PYMNTS Intelligence", "PYMNTS News", "PYMNTS Study", "Velera" ] }, { "id": "https://www.pymnts.com/?p=2539814", "url": "https://www.pymnts.com/credit-unions/2025/velera-ceo-credit-unions-beef-up-financial-guidance-as-members-face-economic-uncertainty/", "title": "Velera CEO: Credit Unions Beef Up Financial Guidance as Members Face Economic Uncertainty", "content_html": "

Among the most strategic initiatives for credit unions, to gain new members and keep current ones loyal, is to innovate.

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During uncertain times, innovation can take several forms, with new products and services delivered digitally. Serving the member means meeting individuals where they want to be met \u2014 and right now they want a bit of guidance from their CUs.

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Chuck Fagan, president and CEO of credit union service organization Velera, told Karen Webster that consumers\u2019 mindsets have been \u201cchaotic these past six months \u2014 sentiment is up and down. There are pockets where the consumer is feeling pretty strong about things, but there are also pockets where there are general concerns\u201d on topics ranging from tariffs to inflation.

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\u201cWhat we\u2019ve seen in terms of delinquencies ticking up, it\u2019s still not at crisis level, and consumers are managing well,\u201d he said.

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However, if the message during the presidential campaign was that prices were going to come down \u2014 eggs are but the poster child here \u2014 well, that\u2019s going to take time.

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Consumers are recalibrating what they can spend, and where, and trying to figure out how to get things ready should the proverbial rainy day come.

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\u201cFor credit unions, this is a prime-time opportunity to provide financial education \u2014 including budgeting tools,\u201d Fagan said.

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There is appeal in offering high yield checking and savings accounts (where in some instances, yields are north of 5%), and banking clients don\u2019t have to tie up their money in CDs to get similar returns.

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Uncertainty for Credit Unions Too

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The uncertainty of the current environment extends to CUs themselves, where the Community Development Financial Institutions (CDFI) Fund was the target of a new executive order from President Donald Trump last month. Trump ordered the CDFI Fund be \u201celiminated to the maximum extent consistent with applicable law.\u201d The Credit Card Competition Act may resurface in the current Congress, throwing the economics of interchange fees into a bit of doubt. The fate of the Consumer Financial Protection Bureau is a wild card.

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\u201cWe\u2019ve been caught up in a consolidation of regulators, and the CFPB, if it\u2019s re-emerged, will certainly have a different focus,\u201d Fagan said.

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That focus might more fully be on fraud, which continued to grow at heady rates, with no slowdown in sight.

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\u201cIf they really wanted to make a difference for the consumer by hunkering down on doing something to protect the consumer on the fraud side, I think it would be huge \u2026 you\u2019ve seen lawsuits dropped and investigations dropped, and what they pick back up will be interesting,\u201d he said.

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The nominee to helm the bureau, Jonathan McKernan, seems to be both a listener and collaborator when it comes to regulatory priorities, \u201cand that\u2019s good for the consumer and for the financial institutions and everyone involved,\u201d Fagan said.

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The Innovation Roadmap

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In discussing how CUs should approach innovation, Fagan said successful innovation requires more than just moving to embrace the shiny new penny, so to speak. Innovation might be simply doing things differently than they had been done before \u2014 but it also requires new digital capabilities.

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Size and scale may not permit much in the way of innovation failures at CUs, but \u201cto truly innovate, you have to have a failure mentality,\u201d he said. \u201cYou\u2019re not going to hit it out of the ballpark with every single initiative.\u201d

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Partnerships are key, especially with digital wallet buildouts, he said. Partnerships, particularly through Velera, can speed innovation cycles, meeting demands for streamlined (virtual) card provisioning and other offerings.

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\u201cSpeed on the back end of innovation is one of those areas where smaller FIs must take advantage,\u201d Fagan said. Otherwise, banking clients, particularly younger ones, will be quick to move to a CU\u2019s competitor.

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Things may be uncertain now, said Fagan, adding, \u201cultimately, we\u2019ll all come out of this on the other side, and things will \u2018strengthen up,\u2019 but it\u2019s going to take a little bit of time.\u201d

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The post Velera CEO: Credit Unions Beef Up Financial Guidance as Members Face Economic Uncertainty appeared first on PYMNTS.com.

\n", "content_text": "Among the most strategic initiatives for credit unions, to gain new members and keep current ones loyal, is to innovate.\nDuring uncertain times, innovation can take several forms, with new products and services delivered digitally. Serving the member means meeting individuals where they want to be met \u2014 and right now they want a bit of guidance from their CUs.\nChuck Fagan, president and CEO of credit union service organization Velera, told Karen Webster that consumers\u2019 mindsets have been \u201cchaotic these past six months \u2014 sentiment is up and down. There are pockets where the consumer is feeling pretty strong about things, but there are also pockets where there are general concerns\u201d on topics ranging from tariffs to inflation.\n\u201cWhat we\u2019ve seen in terms of delinquencies ticking up, it\u2019s still not at crisis level, and consumers are managing well,\u201d he said.\nHowever, if the message during the presidential campaign was that prices were going to come down \u2014 eggs are but the poster child here \u2014 well, that\u2019s going to take time.\nConsumers are recalibrating what they can spend, and where, and trying to figure out how to get things ready should the proverbial rainy day come.\n\u201cFor credit unions, this is a prime-time opportunity to provide financial education \u2014 including budgeting tools,\u201d Fagan said.\nThere is appeal in offering high yield checking and savings accounts (where in some instances, yields are north of 5%), and banking clients don\u2019t have to tie up their money in CDs to get similar returns.\nUncertainty for Credit Unions Too\nThe uncertainty of the current environment extends to CUs themselves, where the Community Development Financial Institutions (CDFI) Fund was the target of a new executive order from President Donald Trump last month. Trump ordered the CDFI Fund be \u201celiminated to the maximum extent consistent with applicable law.\u201d The Credit Card Competition Act may resurface in the current Congress, throwing the economics of interchange fees into a bit of doubt. The fate of the Consumer Financial Protection Bureau is a wild card.\n\u201cWe\u2019ve been caught up in a consolidation of regulators, and the CFPB, if it\u2019s re-emerged, will certainly have a different focus,\u201d Fagan said.\nThat focus might more fully be on fraud, which continued to grow at heady rates, with no slowdown in sight.\n\u201cIf they really wanted to make a difference for the consumer by hunkering down on doing something to protect the consumer on the fraud side, I think it would be huge \u2026 you\u2019ve seen lawsuits dropped and investigations dropped, and what they pick back up will be interesting,\u201d he said.\nThe nominee to helm the bureau, Jonathan McKernan, seems to be both a listener and collaborator when it comes to regulatory priorities, \u201cand that\u2019s good for the consumer and for the financial institutions and everyone involved,\u201d Fagan said.\nThe Innovation Roadmap\nIn discussing how CUs should approach innovation, Fagan said successful innovation requires more than just moving to embrace the shiny new penny, so to speak. Innovation might be simply doing things differently than they had been done before \u2014 but it also requires new digital capabilities.\nSize and scale may not permit much in the way of innovation failures at CUs, but \u201cto truly innovate, you have to have a failure mentality,\u201d he said. \u201cYou\u2019re not going to hit it out of the ballpark with every single initiative.\u201d\nPartnerships are key, especially with digital wallet buildouts, he said. Partnerships, particularly through Velera, can speed innovation cycles, meeting demands for streamlined (virtual) card provisioning and other offerings.\n\u201cSpeed on the back end of innovation is one of those areas where smaller FIs must take advantage,\u201d Fagan said. Otherwise, banking clients, particularly younger ones, will be quick to move to a CU\u2019s competitor.\nThings may be uncertain now, said Fagan, adding, \u201cultimately, we\u2019ll all come out of this on the other side, and things will \u2018strengthen up,\u2019 but it\u2019s going to take a little bit of time.\u201d\nThe post Velera CEO: Credit Unions Beef Up Financial Guidance as Members Face Economic Uncertainty appeared first on PYMNTS.com.", "date_published": "2025-04-02T04:03:19-04:00", "date_modified": "2025-04-01T22:23:18-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/Velera-credit-unions-Fagan.jpg", "tags": [ "Chuck Fagan", "Credit Unions", "digital wallets", "economy", "Featured News", "financial inclusion", "Innovation", "News", "partnerships", "PYMNTS News", "pymnts tv", "Velera", "video" ] }, { "id": "https://www.pymnts.com/?p=2514904", "url": "https://www.pymnts.com/credit-unions/2025/64-percent-of-credit-unions-plan-to-offer-biometrics-authentication/", "title": "64% of Credit Unions Plan to Offer Biometrics Authentication", "content_html": "

As is the case with any entity, banks\u2019 relationship with their end customers is only as strong as the trust that exists between the two, and in satisfying the priorities of their members.

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And right now, credit union members want to be reassured that their data and their money is being kept safe. As detailed here, last year, scams have become the leading form of fraud, surpassing digital payment fraud. The share of scam-related fraud increased by 56%, financial losses from scams rose 121% and the percentage of banks that posted a boost in dollar-denominated fraud losses stood at 42%. That\u2019s a jump from the 29% of financial institutions (FIs) that had said the same in 2023.

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In the report \u201cRetention Roadmap: Credit Unions Drive Member Loyalty via Priority Alignment,\u201d done in collaboration between PYMNTS Intelligence and Velera, we found there are real advantages in meeting expectations \u2014 as top-performing credit unions (CUs) have markedly low churn, at 1.7%. Higher digital adoption, as members demand new tools and services, offers a number of benefits, too: CUs can engage members at the points where they want to be met, namely on digital devices and cellphones.

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Read more: Velera Warns Credit Unions of \u2018Consumer-Engaged\u2019 Fraud

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Where the Priorities Lie

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CUs are prioritizing what matters most to members: security and self-service. The two can go hand in hand. Security can leverage the very notion of the self \u2014 where biometric authentication uses the unique attributes of a finger or facial scan to use the banking apps that power everyday financial lives. CUs with proactive innovation strategies, which would include security, and a high degree of innovation readiness, achieve active mobile banking user rates that are 20% higher lesser performing peers. Sixty-four percent of CUs plan to offer biometric authentication or digital identity in the next three years, which still leaves some room for improvement, as roughly a third of CUs are yet to join that biometric authentication pantheon.

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\"Credit

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PYMNTS Intelligence data shows nearly one-quarter (24%) of consumers say security features are the most important investment for their primary FIs to make in the next three years \u2014 a greater share than for any other feature. Given the fact that security features and self-service digital solutions are also the top two priorities cited by 24% and 22% of small to medium-sized businesses (SMBs), respectively, there\u2019s also a need for credit unions to examine how they serve their commercial clientele. Business email compromise and artificial intelligence (AI) deepfakes are all tools in the fraudsters\u2019 arsenals.

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The consumers who have, unfortunately, been on the receiving end of fraud attacks are still sanguine about their CU experiences. The data show that last year, a whopping 77% of CU members report being satisfied or very satisfied with how their FIs have handled their fraud situations. That\u2019s up by 14 points from the previous year, which indicates that the tech-driven advances are bearing fruit.

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As for the self-service options that are then on offer once the security protocols are in place and all checks out (and members are free to interact with the CU), 55% of CUs surveyed by PYMNTS Intelligence and Velera plan to offer self-service digital solutions in the next three years.

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Trust is the glue that binds customers to their credit unions, and biometrics can be an added layer of reassurance that CUs are going the extra, tech-driven mile to increase that trust.

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The post 64% of Credit Unions Plan to Offer Biometrics Authentication appeared first on PYMNTS.com.

\n", "content_text": "As is the case with any entity, banks\u2019 relationship with their end customers is only as strong as the trust that exists between the two, and in satisfying the priorities of their members.\nAnd right now, credit union members want to be reassured that their data and their money is being kept safe. As detailed here, last year, scams have become the leading form of fraud, surpassing digital payment fraud. The share of scam-related fraud increased by 56%, financial losses from scams rose 121% and the percentage of banks that posted a boost in dollar-denominated fraud losses stood at 42%. That\u2019s a jump from the 29% of financial institutions (FIs) that had said the same in 2023.\nIn the report \u201cRetention Roadmap: Credit Unions Drive Member Loyalty via Priority Alignment,\u201d done in collaboration between PYMNTS Intelligence and Velera, we found there are real advantages in meeting expectations \u2014 as top-performing credit unions (CUs) have markedly low churn, at 1.7%. Higher digital adoption, as members demand new tools and services, offers a number of benefits, too: CUs can engage members at the points where they want to be met, namely on digital devices and cellphones.\nRead more: Velera Warns Credit Unions of \u2018Consumer-Engaged\u2019 Fraud\nWhere the Priorities Lie \nCUs are prioritizing what matters most to members: security and self-service. The two can go hand in hand. Security can leverage the very notion of the self \u2014 where biometric authentication uses the unique attributes of a finger or facial scan to use the banking apps that power everyday financial lives. CUs with proactive innovation strategies, which would include security, and a high degree of innovation readiness, achieve active mobile banking user rates that are 20% higher lesser performing peers. Sixty-four percent of CUs plan to offer biometric authentication or digital identity in the next three years, which still leaves some room for improvement, as roughly a third of CUs are yet to join that biometric authentication pantheon.\n\nPYMNTS Intelligence data shows nearly one-quarter (24%) of consumers say security features are the most important investment for their primary FIs to make in the next three years \u2014 a greater share than for any other feature. Given the fact that security features and self-service digital solutions are also the top two priorities cited by 24% and 22% of small to medium-sized businesses (SMBs), respectively, there\u2019s also a need for credit unions to examine how they serve their commercial clientele. Business email compromise and artificial intelligence (AI) deepfakes are all tools in the fraudsters\u2019 arsenals.\nThe consumers who have, unfortunately, been on the receiving end of fraud attacks are still sanguine about their CU experiences. The data show that last year, a whopping 77% of CU members report being satisfied or very satisfied with how their FIs have handled their fraud situations. That\u2019s up by 14 points from the previous year, which indicates that the tech-driven advances are bearing fruit.\nAs for the self-service options that are then on offer once the security protocols are in place and all checks out (and members are free to interact with the CU), 55% of CUs surveyed by PYMNTS Intelligence and Velera plan to offer self-service digital solutions in the next three years.\nTrust is the glue that binds customers to their credit unions, and biometrics can be an added layer of reassurance that CUs are going the extra, tech-driven mile to increase that trust.\nThe post 64% of Credit Unions Plan to Offer Biometrics Authentication appeared first on PYMNTS.com.", "date_published": "2025-03-27T04:00:01-04:00", "date_modified": "2025-04-11T14:06:54-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/03/cybersecurity-credit-unions.png", "tags": [ "authentication", "banking", "Biometric Authentication", "biometrics", "Credit Unions", "CUs", "Cybersecurity", "Digital Banking", "Featured News", "fraud", "Fraud Prevention", "News", "PYMNTS Intelligence", "PYMNTS News", "scams", "Security", "self-service banking", "Velera" ] }, { "id": "https://www.pymnts.com/?p=2517399", "url": "https://www.pymnts.com/credit-unions/2025/why-mobile-banking-at-credit-unions-demands-more-than-an-app-refresh/", "title": "Why Mobile Banking at Credit Unions Demands More Than an App Refresh", "content_html": "

For credit unions, the move toward becoming \u201csmarter\u201d digital financial service providers entails embracing several strategic and technological shifts.\u00a0

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David Durovy, senior vice president of transformation at i2c, told PYMNTS that many financial services firms, credit unions included, have historically relied on basic alerts, member prompts and generic digital coupons, some delivered via mobile apps or SMS text.

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But that\u2019s not enough, and members want their credit unions (CUs) to know a lot more about them, and to have an engagement that boils down to a conversation. Credit union members don\u2019t want to be talked to by their banks, said Durovy \u2014 they want to talk with their CUs.

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Getting there is no easy feat and means doing a lot more than simply updating and refreshing banking apps.

\n

As he noted, \u201cit\u2019s easy to throw around the word digital,\u201d and \u201cdigital experiences, digital first, they are buzzwords we hear every day across the industry, across a variety of use cases, but specifically for the credit union audience.\u201d But these smaller financial institutions (FIs) have challenges in the mix as they seek to modernize operations and their members\u2019 banking experiences.\u00a0

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Compared to national banks, said Durovy, credit unions face budgetary constraints, and their staffing resources are far outpaced by their larger brethren. In order to forge ahead with new product and service innovations, credit unions have outsourced or utilized third-party aggregators to deliver a number of services that are critical for their member base.

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Those third parties can include a broad range of providers, spanning core platforms to card issuing services. But in some cases, those same providers might not have the capabilities on hand to serve a credit union\u2019s specific product roadmap or the services its individual and corporate clients are demanding.

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Most credit unions\u2019 members want an enhanced mobile experience, where, as Durovy said, many digitally savvy individuals, especially younger generations, have never had to write a paper check.

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Adjusting to a Mobile-First World

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\u201cWe\u2019re in a mobile-first and mobile-native world,\u201d he told PYMNTS, \u201cand we have to be transacting there. But that\u2019s one of the key areas where even today, a large number of credit unions still haven\u2019t been provided the capabilities from their existing partners to be able to get there.\u201d

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And because of those limitations, said Durovy, CUs cannot capitalize as fully as they might on the fact that their competitive differentiation rests with an intimate knowledge of the markets they serve \u2014 the personal relationships that informs everything from setting up accounts to underwriting credit.

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To fully digitize, he said, it\u2019s important that the CUs providers \u2014 no matter if they offer a full suite of services or particular point solutions that plug into legacy infrastructure and their architecture \u2014 provide new capabilities, new services and new ways of interacting. Key questions that must be asked and answered, Durovy said, include:

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\u201cHow do we create that credit union interaction with them through a mobile channel? What are the capabilities that we can pull through the mobile channel that are relevant today, but don\u2019t necessarily require us to go into a credit union branch? How do we extend service through chat channels, and not just with chatbots?\u2019\u201d In short: \u201cHow do we add that layer of intelligence that truly differentiates the credit union?\u201d

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It will take a while, said Durovy, but there\u2019s potential to be realized from embedded finance, underpinned by member-specific data that crafts personalized offers and cash-back rewards tied to local businesses. That contextual effort will be sharpened by the use of artificial intelligence (AI), he said, as CUs partner with firms such as i2c to build those services \u2014 especially around card issuing and small- to medium-sized business (SMB)-facing offerings.

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\u201cCard issuance is top of mind for a lot of credit union leaders today because historically they just haven\u2019t had that product control and they haven\u2019t had insight into a lot of the data,\u201d he said. Now, \u201cfast forward to today\u2019s world. Companies like i2c can provide configurable, turnkey type solutions that allow [credit unions] to have the balance sheet \u2026 and allow them to take as much control of the operating environment as they want or are comfortable with.\u201d\u00a0

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As credit unions use digital and mobile channels to grow loyalty with existing members and gain new members, he told PYMNTS, \u201cthe whole premise here is that the credit union is local, that it does have a different knowledge base, a different understanding of the market, and it does provide service in a different way.\u201d

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The post Why Mobile Banking at Credit Unions Demands More Than an App Refresh appeared first on PYMNTS.com.

\n", "content_text": "For credit unions, the move toward becoming \u201csmarter\u201d digital financial service providers entails embracing several strategic and technological shifts.\u00a0\nDavid Durovy, senior vice president of transformation at i2c, told PYMNTS that many financial services firms, credit unions included, have historically relied on basic alerts, member prompts and generic digital coupons, some delivered via mobile apps or SMS text. \nBut that\u2019s not enough, and members want their credit unions (CUs) to know a lot more about them, and to have an engagement that boils down to a conversation. Credit union members don\u2019t want to be talked to by their banks, said Durovy \u2014 they want to talk with their CUs. \nGetting there is no easy feat and means doing a lot more than simply updating and refreshing banking apps. \nAs he noted, \u201cit\u2019s easy to throw around the word digital,\u201d and \u201cdigital experiences, digital first, they are buzzwords we hear every day across the industry, across a variety of use cases, but specifically for the credit union audience.\u201d But these smaller financial institutions (FIs) have challenges in the mix as they seek to modernize operations and their members\u2019 banking experiences.\u00a0 \nCompared to national banks, said Durovy, credit unions face budgetary constraints, and their staffing resources are far outpaced by their larger brethren. In order to forge ahead with new product and service innovations, credit unions have outsourced or utilized third-party aggregators to deliver a number of services that are critical for their member base.\nThose third parties can include a broad range of providers, spanning core platforms to card issuing services. But in some cases, those same providers might not have the capabilities on hand to serve a credit union\u2019s specific product roadmap or the services its individual and corporate clients are demanding.\nMost credit unions\u2019 members want an enhanced mobile experience, where, as Durovy said, many digitally savvy individuals, especially younger generations, have never had to write a paper check. \nAdjusting to a Mobile-First World \n\u201cWe\u2019re in a mobile-first and mobile-native world,\u201d he told PYMNTS, \u201cand we have to be transacting there. But that\u2019s one of the key areas where even today, a large number of credit unions still haven\u2019t been provided the capabilities from their existing partners to be able to get there.\u201d\nAnd because of those limitations, said Durovy, CUs cannot capitalize as fully as they might on the fact that their competitive differentiation rests with an intimate knowledge of the markets they serve \u2014 the personal relationships that informs everything from setting up accounts to underwriting credit.\nTo fully digitize, he said, it\u2019s important that the CUs providers \u2014 no matter if they offer a full suite of services or particular point solutions that plug into legacy infrastructure and their architecture \u2014 provide new capabilities, new services and new ways of interacting. Key questions that must be asked and answered, Durovy said, include:\n\u201cHow do we create that credit union interaction with them through a mobile channel? What are the capabilities that we can pull through the mobile channel that are relevant today, but don\u2019t necessarily require us to go into a credit union branch? How do we extend service through chat channels, and not just with chatbots?\u2019\u201d In short: \u201cHow do we add that layer of intelligence that truly differentiates the credit union?\u201d\nIt will take a while, said Durovy, but there\u2019s potential to be realized from embedded finance, underpinned by member-specific data that crafts personalized offers and cash-back rewards tied to local businesses. That contextual effort will be sharpened by the use of artificial intelligence (AI), he said, as CUs partner with firms such as i2c to build those services \u2014 especially around card issuing and small- to medium-sized business (SMB)-facing offerings.\n\u201cCard issuance is top of mind for a lot of credit union leaders today because historically they just haven\u2019t had that product control and they haven\u2019t had insight into a lot of the data,\u201d he said. Now, \u201cfast forward to today\u2019s world. Companies like i2c can provide configurable, turnkey type solutions that allow [credit unions] to have the balance sheet \u2026 and allow them to take as much control of the operating environment as they want or are comfortable with.\u201d\u00a0 \nAs credit unions use digital and mobile channels to grow loyalty with existing members and gain new members, he told PYMNTS, \u201cthe whole premise here is that the credit union is local, that it does have a different knowledge base, a different understanding of the market, and it does provide service in a different way.\u201d \nThe post Why Mobile Banking at Credit Unions Demands More Than an App Refresh appeared first on PYMNTS.com.", "date_published": "2025-03-25T04:00:31-04:00", "date_modified": "2025-03-24T22:04:44-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/03/i2c-david.jpg", "tags": [ "consumer finances", "Credit Unions", "David Durovy", "Digital Banking", "digital first banking", "digital transformation", "financial institutions", "financial services", "i2C", "Main Feature", "mobile banking", "News", "PYMNTS News", "pymnts tv" ] } ] }