Market Stresses Are Forcing Mergers

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Every credit union member wants to belong to a safe and secure organization that serves and anticipates their needs. Providing state-of-the-art, secure services takes strategic investments in hardware, software and people. Financial innovation and advancing technologies bring new ways to serve members. Data analytics, artificial intelligence and predictive services using state-of-the-art expertise and technology create a personalized member experience, improve operating efficiencies and increase financial strength of the institution.

The COVID-19 pandemic has accelerated the need for reliable mobile banking and technology. In addition, an increase in bad actors and cybersecurity threats has put incredible stress on our technology platforms. The Office of Comptroller of the Currency’s most recent report from November 2020 warned that the pandemic-related economic downturn is increasing credit risk as individual debt service capacity is diminished, and compliance costs are increasing further due to altered and evolving work environments. Financial research firm BAI described how the pandemic has altered the delivery of service and accelerated mobile banking, making bricks and mortar less important to members. More than half (52%) of banking consumers increased their digital usage and most (87%) plan to remain mostly digital after physical locations reopen.