Fresh off the success of its highest attended owner meeting since inception, MEMBERS Development Company (MDC) hosted a dynamic and successful FinTech Expo on August 7 in Chicago. MDC created the FinTech Expo in response to the urgent need for credit unions to collaborate over engaging with fintechs and get ahead of the disruption fintechs are creating in the consumer finance industry.
“Banks are way ahead of credit unions in this arena, and there is no way that individual credit unions can navigate the huge space fintechs now occupy,” said Jeff Kline, MDC’s CEO. “However, by banding together, credit unions can engage with relevant fintechs and be seen as a top-of-mind partner or investor for fintechs looking for clients or capital.”
Fifteen different fintechs presented at the Expo in response to invitations from a committee of MDC owner representatives. The fintechs included disruptors in lending, payments, IT, security, fraud prevention, marketing and personal finance management. During the Expo, MDC staff, thought leaders, external partners and subject matter experts also delivered insights about both the need for credit unions to engage with fintechs and the best practices for doing so.
“If we aren’t proactive in this space, banks and even fintechs that provide competitive financial services will offer the experiences that our current and potential members want, while we’re all still doing the same old thing,” said David Faleski, CIO for Coastal Credit Union ($3.27 billion, Raleigh, N.C.) and emcee of the Expo. “Gathering together at the Expo was one of the first steps, but the work we did here and other efforts happening in our network have laid a very important foundation for future success with fintechs.”
MDC’s FinTech Expo concluded with the announcement of a new CUSO, called CU Payz, developed out of a working partnership between MDC, Constellation Digital Partners, Payrailz and six founding credit unions, which will revolutionize payment processing for credit unions across the nation. Built on Payrailz’ digital payment technology, CU Payz will provide a better overall payment experience for credit union members. More information on CU Payz is available from the Payrailz press release announcing the creation of the CUSO.
“This is an exciting time for credit unions that is full of opportunity, but we have a lot of catching up to do,” said Scott Daukus, Chief Strategy Officer for TwinStar Credit Union ($1.36 billion, Olympia, Wash.), who helped drive many of MDC’s recent efforts in the fintech space. “I’m proud of the work we’ve accomplished so far and eager to continue to push our network forward.”
MEMBERS Development Company is an interactive network of industry leaders serving as a catalyst for success in the credit union industry by identifying and connecting disruptors in financial services. MDC’s owners pool resources to enable relevant research, develop innovative products and services, create valuable vendor relationships, share knowledge, provide economies of scale and keep a consistent focus on the horizon. Combined, our owners serve 14.5 million members, hold nearly $206 billion in assets, maintain over 1,800 branch locations across the nation and employ more than 37,000 employees. More information is available at www.membersdevelopment.com.