DUBLIN, Ireland–More than 100 credit union representatives here were told “everything must change” by at least one person here during a meeting that examined what CUs will need to do to survive and prosper moving forward.
The event, held at the Swoboda Research Centre https://swobodacentre.org, looked at regulation, digital, AI, and attracting Gen Z – with credit unions told collaboration could be their “superpower,” according to Co-op News.
The Swoboda Center is named for former CUNA President Ralph Swoboda, who spent the final years of his career active in doing work with Ireland’s credit unions.
“Everything must change and nothing will stay the same,” Nick Money, director of the Swoboda Research Conference, told its recent conference in Dublin,” Co-op News reported.
The event was held to discuss what the future might look like for credit unions in Britain and Ireland.
‘Not Just About the App’
Money told the meeting credit unions need major transformations to maintain their mission of serving members, and that digitalization is “not just having an app or online banking … We have to talk about how we transform our organizations,” according to the report.
Throughout the day, participants heard from credit union experts, including with George Hofheimer, who was previously with the Filene Research Institute and who told the meeting he believes 2025-2035 could become the credit union decade.
Six Imperatives
“Collaboration has the potential to be our superpower,” Hofheimer told the event, Co-op New reported, adding that he highlighted a recent report by McKinsey, which highlights six imperatives for U.S. credit unions:
- Emphasizing social impact
- Engaging through digital channels
- Investing in digital banking and personalization
- Upgrading technology infrastructure
- Leveraging artificial intelligence
- Pursuing mergers and partnerships.
“Hofheimer agrees with this, but feels that for the next decade to be one of credit union growth, the sector needs to focus on ‘the boring stuff’ – like prioritizing lending, optimizing capital, managing expenses aggressively, and providing favorable pricing,” Co-op News reported.
Where to Focus
Separately Mairead McGuiness, former European commissioner for financial stability, financial services and the Capital Markets Union, warned against some of the risks that come with new technology, arguing that credit unions should focus on empowering and supporting people, according to Co-op News.
In addition, Cédric Turini, from the Fédération Nationale des Caisses d’Epargne, a federation of co-operative savings banks in France, discussed ways to attract young members, Co-op News added.
Getting Old
“We need to address the aging profile of our current member base,” he was quoted as saying, referring to co-op banks in France – and warned that this might carry initial costs.
According to the report, the federation has launched a series of initiatives in recent years to encourage young people to engage with co-op banks, including money management classes for children, student loan schemes that do not require personal guarantees, and partnerships with content creators to raise brand awareness via platforms like TikTok and Instagram.
