Credit Unions Embracing Tech in the Age of Global Pandemic

Posted by Charlie Lee

The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the content herein. The opinions expressed in this article are the opinions of the individual author and may not reflect the opinions of MeridianLink, Inc.

The COVID-19 global pandemic has impacted credit unions in many ways. One effect of this pandemic is that credit unions are being forced to restrict hours at their physical branches, or to close those branches altogether. As they have done so, more and more credit unions have turned to digital banking and digital lending technology to keep up with the needs of their members.

 

Sadly, a number of credit unions have found that they are starting way behind the curve when it comes to mobile banking technology. Smaller credit unions are especially at a disadvantage.

 

But adoption of new technology can happen quickly, empowering even smaller credit unions to serve members through these trying times. Read this article for a deeper dive into the technological opportunities that exist from companies like MeridianLink, including account opening software and loan origination software.

 

Credit Unions Embracing Tech in the Age of Coronavirus

 

The Coronavirus global pandemic has forced many changes upon credit unions, with many of them either limiting their branch hours or closing their lobbies altogether.

 

In response to these changes, many credit unions have begun falling back on digital banking and digital lending options… and discovering that their technological infrastructure leaves something to be desired.

 

Digital Lending Adoption: Big Credit Unions vs. Small Ones

 

Many of the nation’s larger credit unions have acted quickly, adopting robust loan origination software and account opening software to better serve members in an era of social distancing.

 

And yet, for smaller and even mid-sized credit unions, developing a broad technology portfolio isn’t so easy. A chart from Credit Union Journal shows just how far behind the curve smaller, independent credit unions tend to be:

 

Small Credit Unions Catching Up-Digital OfferingSource: Credit Union Journal

 

But if there’s any silver lining, it may be that so many credit unions have caught on to just how beneficial mobile banking and digital lending platforms can be… not just for the credit unions themselves, but also for their members.

 

How Credit Union Tech Companies are Stepping Up

 

Of course, digital banking and digital lending platforms are nothing new. Robust mobile banking options have been around for a good long while, even if credit unions have been slow to adopt them.

 

And now, as the pandemic rages, many of the country’s top providers of mobile banking tech are going out of their way to make their products as accessible as possible, providing credit unions with free trials and responsive tech support.

 

As these tech companies step up, credit unions are responding. More and more credit unions are implementing mobile lending and account opening platforms, providing a way for their members to keep up with their financial needs even with physical branches closed.

 

Of course, implementing any kind of new technology involves a level of risk. That’s something credit unions are reluctant to take on in the midst of an unprecedented global pandemic. Mobile banking fraud, in particular, is a top concern for many credit unions.

 

But for many, the benefits of mobile banking far outweigh these risks. Indeed, many credit unions are realizing some of the ways in which mobile banking could have been paying off all along; in particular, it provides an avenue to grow volume among younger members, who are more app-centric and less keen on visiting physical branches of any bank.

 

What to Look for in Mobile Banking Tech

 

Of course, with so much digital banking tech to choose from, it’s important for credit unions to prioritize.

 

Some of the most essential functions are the ability to let new members open accounts online or apply for loans, even from their own homes. Digital lending and digital banking technology should be at the top of any credit union’s wish list.

 

Curious to learn more ? Contact us today about account opening software or account origination software today.

 

Digital Lending Best Practices

 

Topics: Account Opening System, digital lending, credit unions, digital banking

Written by Charlie Lee

Executive Vice President, Marketing

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