We have all heard how the pandemic put the demand for and use of technology into overdrive for most companies, including credit unions. Member expectations defined the need for faster adoption and more digital technology on the credit union’s part. The speed at which credit unions were able to make the shift put them in a position that could dramatically affect their future existence.
Another interesting result of the pandemic was the temporary pause on mergers and acquisitions (M&A). As people and companies start to return to normal, credit unions will face the reality of whether they have been able to optimize technology and weather the pandemic storm to be a major player, or if they will be swept away with the wave of change. According to American Banker, credit unions may be encouraged to merge in response to competition from large banks in 2021. This changing environment will pressure credit unions to determine what side they will come out on: acquiring or being acquired. Technology will play a large role in that determination – how successful a credit union has been in harnessing technology to improve everything from member experience to internal processes will make a difference.