Digital technology is changing people’s expectations regarding financial services. Gen Z prefers to get financial advice on social media over a banking representative and more people hold an account with a fintech company (42%) than a credit union (31%) (Drive Research). This highlights the reality that digital innovation is vital to meeting expectations and attracting new members. Fortunately, even credit unions with limited resources can innovate through strategic partnerships.  

I’d argue innovation needs to start with a plainly stated, measurable goal that identifies the required technology needed to achieve it. Purpose-driven innovation prevents wasting resources and time on innovations that offer no clear benefit. A precisely stated goal is much easier for all members of a credit union team to understand and embrace. It can also be a helpful guide for future projects. Once you know your goal, you also know what to look for in a potential partner.

Innovation thrives best when merged into your credit union’s culture, and it’s up to executives to lead the way. When pursuing an innovation project, reach out to all departments for input at each stage from brainstorming to testing and polishing. Let employees know they are also welcome to come forward anytime with suggestions for new tools or to share insights from their interactions with members. Thank and acknowledge those who do.

The ultimate goal is to get employes comfortable enough to take the initiative and make suggestions on their own. That’s when innovation becomes a core part of your credit union’s culture and future.

The most impactful partnerships come from a 360-degree view of the changing horizon. Search out the latest innovations, wherever they’re happening, either inside or outside the financial services industry.

Technology accelerators are a good resource. They can be like tide pools teaming with fresh, undiscovered digital innovators primed to change consumer expectations. Studying them can help credit unions spot the next disruption and strategically plan for it instead of floundering to stay afloat amid the next transformative wave.

Now that you have a clear goal, a team that embraces innovation, and a pulse on future member expectations, you’re ready to start forming strategic partnerships. Fintechs and CUSOs often make excellent partners, offering advanced services or connections to additional resources. Another option is to partner with fellow credit unions who share your goals, exchanging ideas and sharing costs. You could also participate in collective funding ventures offered through CUSOs or technology accelerators. All of these options can help your credit union achieve innovation goals by harnessing the cooperative spirit of our credit union mission.

Strategic partnerships provide a powerful path for credit unions to grow, adapt, and deliver greater value to members. When based on initiatives grounded in purpose, supported by an engaged workforce, and informed by insights from both inside and outside the industry, partnerships become catalysts for long-term progress. Credit unions that embrace this innovative mindset advance themselves as well as the broader cooperative system that represents the industry’s lasting strength.

As a CUSO helping credit unions across all 50 states achieve their vision, Envisant offers a forward-thinking strategy for credit, debit, and prepaid cards, as well as fintech partnership opportunities.

Originally published on CUInsight.