Credit Unions Turn to FinTechs to Fast Track Digital Upgrades

Credit union innovation is no longer something that happens quietly in the background. It has become a defining factor in how these institutions compete, grow and serve members in a fast-changing financial landscape. “Credit Union Innovation Readiness: How Credit Unions and FinTechs Are Innovating Together” explores how credit unions are using external partners to move faster, expand capabilities and manage rising complexity, and where those partnerships succeed or struggle.

Based on two surveys of 500 credit union executives and 100 FinTechs conducted in late 2025, the report shows a clear shift in mindset. Executives no longer view these partnerships as add-ons or experiments. For many credit unions, especially smaller institutions and early movers, FinTech partnerships are now the primary way to deliver new digital experiences, strengthen risk management and keep pace with member expectations. More than half of credit unions say partners help bring innovations at a much faster pace or on a larger scale than they could achieve on their own. At the same time, the data reveals a growing gap in how credit unions and FinTechs experience these collaborations, particularly around timelines, execution and return on investment.

The findings suggest that the most recent partnerships are not about launching entirely new products from scratch. Instead, they focus on improving what already exists. Credit unions are adding features to their current offerings, expanding service channels and addressing fraud, compliance and operational efficiency. While credit unions often view longer timelines as a reasonable trade-off in a regulated environment, FinTechs are more likely to see those same delays as costly and disruptive. This difference in perspective does not mean these partnerships are failing, but it does raise important questions about expectations, alignment and what success really looks like.

What You’ll Learn Inside “Credit Union Innovation Readiness: How Credit Unions and FinTechs Are Innovating Together”

• FinTech partnerships have become the backbone of innovation for many credit unions. The research shows why collaboration is now central to speed, scale and competitiveness, especially for institutions with limited internal resources.
• Credit unions and FinTechs measure progress differently. The report explains how each side defines success, why timelines often slip and how those differences shape perceptions of performance.
• Early movers gain an advantage from clarity and focus. The findings highlight how credit unions that launch earlier are more likely to see results, and what sets their approach apart from slower adopters.

Together, these insights offer a clear picture of where credit union innovation is headed, why partnerships matter more than ever and what both sides must do to turn collaboration into lasting results.

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“Credit Union Innovation Readiness: How Credit Unions and FinTechs Are Innovating Together,” a PYMNTS Intelligence and Velera collaboration, examines how credit union and FinTech partnerships deliver innovation. It highlights where partnerships accelerate speed and returns, and where differences in expectations around timelines, execution and ROI create friction. The report is based on two surveys. One survey consisted of 500 credit union executives conducted from October 22, 2025, to November 21, 2025. The second consisted of 100 FinTechs, conducted from October 21, 2025, to November 6, 2025.

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