A new fintech partnership offers new and innovative ideas for credit unions.

Though fintechs and credit unions are both beginning to recognize the value of working closer together, there are still some issues (and frustration) on both sides when it comes to establishing a true partnership. Much of this friction could come down to broad disconnects between the two types of organizations. For example, a recent study by the Fintech Innovation Lab of New York suggested that while 60% of the financial institution respondents cited regulatory compliance and security as major areas for concern, less than 20% of the polled fintechs listed these as issues. Instead, fintechs identified budgeting, internal competition and sunken costs of legacy technology as their top concerns.

The honest truth is that fintechs oftentimes do not have a full understanding of how risk management and compliance work within a credit union. Many tend to be focused on creating a viable product, rather than the regulatory issues and security concerns that credit unions keep top-of-mind. The same study above showed that while more than 60% of surveyed fintechs said they consult with financial companies on regulatory issues, 38% said that they are not currently addressing any regulatory issues at all.

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