By Barb Lowman, CUDE, President of CUNA Strategic Services
At this point in my career, I’ve sat on every side of the table – credit union operations and advocacy, global fintech innovation, and financial partnerships (to name a few). And there are a few things I wish more fintech companies knew before they walk into a room filled with credit union leaders.
Read on for insights I’ve honed over decades in the industry.
I meet so many people outside the system who assume credit unions are just banks by a different name. Wrong. Don’t come near a credit union with ideas about their “customers” – credit unions have “members.” In fact, credit unions are 100% not for profit, member owned and cooperatively run.
If you really want to operate within the credit union movement, take time to understand the fundamental differences. Credit unions operate with a “people helping people” philosophy. This shapes how leaders make decisions, how they evaluate partnerships, and how they deliver value to their member-owners.
Almost 150 million Americans are credit union members, nearly half the U.S. adult population. Many members are fiercely loyal, seeing their credit unions (rightly) as true advocates and champions of the people. If you come in talking about customer acquisition metrics and shareholder returns, you're showing that you don't understand who you're talking to. Credit unions want to work with companies who share their values and understand and align with their mission.
One of the most frustrating assumptions I encounter over and over is that asset size will predict innovation appetite, and therefore it’s only worth your time to go after the “big fish” in the credit union sea. That’s simply not true.
Some of the most forward-thinking leaders I know are running smaller shops. And with fewer decision-makers in the room, smaller credit unions often have the advantage of moving faster to adopt new technology, test new ideas, get direct feedback from their smaller (and typically highly engaged) members, and give direct feedback to fintech on the implementation process.
It’s also worth noting that more than half of all federally insured credit unions in the U.S. have asset sizes under $100 million. Treating small credit unions as low-priority prospects means you’re missing out on literally thousands of opportunities to connect and grow.
Credit unions are not a monolith. What resonates with one credit union team could completely miss the mark with another. With thousands of credit unions operating across the country, you’ll find vastly different asset sizes, growth goals, fields of membership, operational processes, and levels of technology adoption.
Adding to the complexity is that different C-suite audiences have different perspectives and concerns. The CFO wants to see cost reduction, ROI, and a clear financial model. The CMO wants to know what this means for members. The COO is thinking about operational complexity and implementation risk. The CIO is asking about integration and security. You get the idea.
It’s essential that your value proposition can flex to accommodate various organizational priorities and leadership perspectives, so you can demonstrate how your solution solves specific problems and meets the exacting standards of any given credit union.
Simply put, if you’ve talked to one credit union or one credit union leader – you haven’t talked to them all. Do your research and pitch prep knowing that no two conversations will be the same.
I’m not exaggerating when I say your ability to foster relationships is the factor most likely to determine your success in the credit union system.
Credit unions run on trust, reputation, and word-of-mouth, and credit unions are collaborative by nature. Leaders talk to each other, share experiences, and make referrals to one another. So if you treat the sale as the finish line, you won’t last in this space. The fintech partners I've seen flourish are the ones who show up consistently, communicate clearly, and treat the credit union's success as their own.
When you make relationship-building core to your credit union growth strategy, you amplify your impact. Just imagine that every interaction you have with a credit union leader is under a magnifying glass for other credit unions to see (because it probably is).
I don't say any of this to be discouraging. The credit union system is genuinely inspiring – mission-driven, member-focused, and more open to innovation than many in the fintech world realize. When you come in ready to listen, learn, and build meaningful partnerships, extraordinary things happen.
The credit union system was the original disruptor. With the right fintech partners, we can keep it that way.
Want to discuss how CSS can help your organization build stronger credit union partnerships? Get in touch with our team.