Chris Zingo | Source | Executive Vice President, Americas at Finastra

Many mission-driven consumers are passionate about choosing a bank that aligns with their personal values. When banks qualify for designations as a minority depository institution or as a community development financial development institution, it can be a powerful competitive advantage.

The three most important takeaways for credit unions from Finastra's survey are: 1) banking-as-a-service, embedded banking services, and open banking will rise in prominence, 2) supporting vulnerable audiences and the underbanked is a key priority for their peers, and 3) U.S. financial institutions invested more than their international counterparts in technology due to the pandemic. Credit Unions really don’t have a choice but to grow. Between 2012 and 2020 we saw a 28% decrease in the number of credit unions. In that same period, credit unions with over $200 million in assets actually grew by 40%, while those with less decreased by 31%. In this same period, we’ve seen a massive increase in global bank spend on consumer experience.

That’s good news for financial institutions seeking to grow their business by moving toward open banking. Still, budgets aren’t growing fast enough to match banks’ appetites for innovation. About seven in ten US financial institutions (69%) say their investments in technology and digital banking are constrained by cost pressures.