As credit unions continue to upgrade and adopt new fintech options to stay competitive, during the process of partnering with vendors and fintech firms, occasionally credit unions experience frustrations or problems with their fintech partnership that might have been avoidable. From Filene's Center for Emerging Technology comes this new report that addresses a variety of risks that any credit union leader thinking about adopting new technology should know about, and provides a roadmap to avoiding potential pitfalls.
Anyone who’s watched The Social Network has seen what can happen when a technology partnership goes bad.
Given the ever-growing presence of technology in our lives and the reality that many credit unions lack the financial resources and technical skill to build their own solutions, it’s likely your credit union either already has partnered or will soon partner with a fintech—a financial technology company. Though you shouldn’t have to worry about an Academy Award-winning movie to chronicle the event, you do face a host of other risks.
What steps should you take before you enter a fintech partnership? What pitfalls can others’ experiences help you avoid? And how can you mitigate risk when dealing with a nonfinancial partner in a compliance- laden world?