FinTechs See 146 Million Reasons to Target Credit Unions

For retail operators and service providers, this shift signals a major change in where your customers might get their financing. Credit unions (CUs) are no longer just sleepy local banks. They are aggressively partnering with FinTech firms to offer modern lending products like Buy Now, Pay Later (BNPL) and instant point-of-sale credit. With 146 million members, CUs represent a massive, underserved market of consumers who generally have higher trust in their financial institution than they do in big national banks. What this means for your business is a more diverse lending landscape. As CUs integrate FinTech tools, your customers may soon have access to better interest rates and higher approval limits through the institutions they already belong to. The report highlights that CUs are moving away from build-it-yourself technology. Instead, they are buying ready-made financing platforms. This allows them to compete directly with major lenders like Affirm or Synchrony. If you currently offer financing, expect to see more 'white-label' credit union options entering the merchant space. This could lower your transaction fees as CUs often operate with lower overhead than commercial banks. Keep an eye on local credit union partnerships as a way to offer more competitive terms to your loyal customer base.

Source: PYMNTS

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