Report
392
Number
Feb 16 2016

The State of Data Technology in Credit Unions: The Sink-or-Swim Crossroad Ahead

Credit unions seem to be far behind in their use of technology, and while most are aware of the changes that technology has unleashed, there is not a strong sense of urgency to rethink the ways credit unions work

Jignesh M. Patel
Professor, Computer Sciences
University of Wisconsin–Madison
George Hofheimer
George Hofheimer
EVP + Chief Research + Development Officer
Filene Research Institute
Report Number 392

Executive Summary

Technology has transformed many vertical sectors of business in the past, and there is a new wave of technology that has the potential to dramatically transform the financial sector. This new wave is being triggered by the changing habits of consumers moving to mobile platforms to interact and transact with financial institutions, and the digitization of the information that powers the decision making in finances for both consumers and providers.

An additional trigger is the democratization of big data technologies that now makes sophisticated data analytics capabilities available at an unprecedented low cost both to the providers of financial services and to consumers. Consumers can now compare and contrast competing financial products with a speed and precision that simply wasn’t possible just a few years ago.