Financial Technology and the Rise of Credit Unions

Everyone needs a place to put their money, and more people are choosing the retail credit union. Why?  The answer is technology advances. Twenty years ago, people had to walk into their bank to withdrawal money. If they needed a loan, the approval process and transaction took place in person. Today’s technology enables many of these processes to be completed online or at ATMs. People can be more selective about where they bank, and they often choose credit unions over a traditional bank. In addition to the low fees of most credit unions, these financial institutions offer the following technological benefits.

Online Loan Application

It is common for today’s consumers to need loans. They rarely walk into a bank for this financing. Instead, they apply online for the loan. Credit unions offer this technology, and they usually can pre-qualify customers. This enables people to get the financing they need quickly – whether they are shopping for a car or buying a home. According to a recent study , advances in technology have made it possible for banks and credit unions to grow their portfolio and increase loan output in a time of economic uncertainty.

Car Shopping

Many credit unions have a section of their website dedicated to car buying. This enables car buyers to have an easier experience shopping for cars. They can browse selected inventory, find a car that meets their need, and choose the financing terms that are right for them. Once they apply for a loan, they are usually pre-qualified quickly. This process is less of a hassle than visiting the dealership, and it might result in better financing.

Theft Protection

Today’s technology can also protect against theft. If someone’s identity is stolen, there is technology available to rectify these situations quickly and effectively. This can minimize the financial losses that happen in these scenarios. It also provides many people with peace of mind when it comes to online banking.

Loan Analysis

According to CU Direct, credit unions actually have technology to analyze their loan portfolios. This enables them to perform better and promotes long-term future success. Without this analysis, many credit unions would have a weaker financial performance. This would result in fewer loans processed, and have a negative effect on all people involved.

There are several ways that technology is used each day to help credit unions and the people that have loans or money with them. It is not surprising that this segment of the banking industry has started to flourish. And, it is likely that more and more people will turn to credit unions for their reliability.