Credit unions don’t invest in fintech the same way banks or venture capital firms do. For them, every decision ties back to member value, operational impact, and long-term purpose.
In the Future Bets series from CreditUnions.com, leaders from institutions across the country share how their shops approach innovation and investment, from building in-house capabilities to backing early-stage partners. Their answers reveal a common tension: how to solve for today’s problems while preparing for what’s next.
There’s no single playbook, but these credit unions are finding principles grounded in mission and discipline can provide a clear sense of where they can make a difference.
“It isn’t an either/or decision between solving today’s challenges and making longer-term bets. The strongest opportunities do both. We look for investments that can address immediate priorities, such as reducing fraud or improving the member experience, while also aligning with the broader strategic direction of the organization.”
Sara Dolan, CFO, Michigan State University FCU
“We’re very aware we’re making these VC investments with our members’ deposits. If we can’t get a meaningful return, then the risk isn’t worth it. This means we have to do a lot more diligence on the company’s operating practices, tracking sales targets and attainment, and helping drive the company’s credit union industry strategy for success.”
Brian Regan, General Partner, Service Ventures
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“If the fintech has what appears to be a novel idea, we’ll bring it back to WSECU for consideration. We’re often surprised by ideas we hadn’t considered yet, meaning we didn’t realize a pain point even existed until we investigated it further.”
Turn disruption into strategic opportunities. The leaders in this series are navigating exactly the kind of strategic tension Disruptive Strategy for Organizations is built for. Offered by Callahan in collaboration with Harvard Business School Online, this executive team learning program equips leaders with a shared framework for anticipating change. Learn more today.