Credit unions are a pillar to society, bringing financial services close to the smaller communities while banks were seen as primarily serving the elite and upper middle class. While some may say this definition belongs in the history books, much of it still applies today.
In 2014, the World Council of Credit Unions set a goal of reaching 260 million credit union members worldwide by 2020. It was reached already in 2017, showing the growing importance of credit unions as financial service providers in many parts of the world. However, that growth was not even across all countries or among all credit unions – the ones that grew were those that offered core services via online and mobile channels. That is why the WOCCU has set a new goal to digitise the global credit union system by 2025.
The common theme is the lack of affordable solutions in the market. Market-leading banking technology providers often do not realise financial constraints of smaller operations or cannot comprehend the business nature and products that credit unions offer to customers. As a result, smaller financial service providers still run on legacy IT systems and/or even Excel spreadsheets for certain functions. What we have learned in our discussions with market participants is that most credit unions today have disconnected systems and processes. This is where one falls behind the curve of customer expectations.
We believe there is a place in the market for smaller financial service providers, who usually are more flexible and closer to customers than large banks. Since 2019, Bankish has helped microfinanciers, business lenders, consumer credit providers and credit unions transform, manage and grow their financing businesses. Whether as a bespoke project or part of a joint project with many participants, our team and solutions are ready to drive digital revolution in credit unions, help WOCCU reach its goal and grow the sector by 2025!