Credit unions must evolve to meet consumer expectations, registrar says
Patrick Casey tells industry conference that tech-led market entrants pose new challenge
The credit union business model must change, a conference was told. Photograph: Colin Keegan
The credit union business model must change to cater for the needs and expectations of members, the registrar of credit unions said on Wednesday.
Although credit unions generally have strong reserves, are growing their loans and are reducing their arrears, financial challenges remain for the sector at a time when consumers increasingly expect a “frictionless experience” when buying financial products and services, Mr Casey said.
Some credit unions aspire to fuller service banking models, he noted, but banks are themselves being increasingly challenged by technology-led market entrants.
“These new firms are typically more agile, compete without technological and structural legacy issues, and often target the most profitable business lines.”