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Latest ECU Monitor tackles fintech partnerships, level playing field, more
NAFCU's latest Economic & CU Monitor – now available for download – examines the latest economic trends and highlights credit union insights on fintech partnership.
The results from last month’s survey revealed 85 percent of respondents did not believe there is a level playing field between fintech and traditional financial services. One respondent observed fintech companies do not contend with the same legacy infrastructure, thinking, and cultural issues that drive inertia within an organization.
“Despite competitive pressure, credit unions are actively seeking out new technologies to lower costs and improve efficiency,” wrote NAFCU’s Research Team. “One emerging technology that has seen growing uptake is artificial intelligence.” Half of respondents said that they were using AI in some form within their credit union, and 21 percent indicated that although they were not current users of AI, they were planning to leverage the technology at some point in the future.
The monitor also noted that regulators have directed their attention to AI and have issued joint statements about the risks the technology could pose in consumer finance or its capacity to facilitate new forms of fraud.
“The CFPB in particular has been vocal about applying scrutiny to opaque AI models that might harbor biases that perpetuate fair lending risks,” added the Research Team.
The association is a leading advocate for a fair, level playing field that accommodates innovation, rather than stifling it and will continue to engage regulators and lawmakers on this topic.
NAFCU relies on survey responses to inform the association’s advocacy efforts and provide member credit unions with a glimpse of trends affecting the industry. Credit unions can share their insights and perspectives on a variety of industry topics and issues through NAFCU’s annual Federal Reserve Survey; responses are due Aug. 9.
The results of the survey will be summarized in NAFCU's annual Report on Credit Unions, which will be shared with Federal Reserve Board Gov. Michelle Bowman and senior Federal Reserve staff during NAFCU’s annual meeting with the Federal Reserve in November – the association’s 30th year of meeting with the Fed.
For more on NAFCU's award-winning research team, check out the association's Macro Data Flash reports for insights into interest rates, auto sales, the housing market, and more.