Report
430
Number
Jul 19 2017

Fintech: Developments and Strategic Implications for Credit Unions

A combination of an accelerated rate of change, lower development costs, attractive profit pools, and changing regulatory environments is propelling fintech products into the worldwide marketplace. These new technologies favor nimble financial organizations and create a challenge for credit unions that generally veer toward prudence and vigilance when managing their members’ hard-earned assets.

Chandra L. Middleton
University of California, Irvine
Report Number 430

See the research come to life in this video infographic.

Executive Summary

The financial world is changing: fintech firms are viewed as the rocket-fast, look-before-leaping spark plugs of the financial industry, and they are changing the way the world uses money. A combination of an accelerated rate of change, lower development costs, attractive profit pools, and changing regulatory environments is propelling fintech products into the worldwide marketplace. These new technologies favor nimble financial organizations and create a challenge for credit unions that generally veer toward prudence and vigilance when managing their members’ hard-earned assets. How does an industry that values caution during times of instability, and prudence over excessive risk, find a way to grow sustainably amid so much technological disruption?