Glasgow Caledonian University

12/02/2024 | Press release | Distributed by Public on 12/02/2024 09:22

Credit unions need help to adapt to digital revolution

Credit unions need help to adapt to digital revolution

Mon, Dec 2 2024 Dr Patrick Ring

Credit unions need support to adapt to the digital banking revolution, according to a new report.

Many are struggling to keep pace with the digital expectations of existing and potential younger members, concludes a new white paper, published by the financial services body Future Finance.

The report identifies key barriers preventing small and medium-sized credit unions from embracing innovation, including perceived technical skills gaps, competition from FinTech market entrants, and operational inefficiencies.

Future Finance is a £1.8million initiative, funded by Innovate UK and the Economic and Social Research Council, to support innovation in the financial services sector.

Four universities - Glasgow Caledonian University, the University of Glasgow, Bristol, and the West of England - are leading the project in collaboration with SETsquared, FinTech West and industry partners.

Future Finance aims to enhance innovation and productivity in the sector and help organisations adapt to challenges, ranging from AI and data to changes in regulation and widening access to services.

The white paper, launched at an industry event in Glasgow, highlights four key technologies that could transform credit union operations; Open Banking; Analytical AI; Generative AI; and Blockchain.

Dr Patrick Ring, Reader in Financial Services at Glasgow Caledonian, said: "Credit Unions play a crucial role in local communities, regional economies, and national financial inclusion efforts. And no more so than in Scotland.

"Our Future Finance Insight Report aims to support this work by providing key insights about the challenges and barriers facing the operations and services of Credit Unions, and the potential innovation and technology solutions that can address them.

"We hope this will contribute to Credit Unions continuing to deliver innovative solutions appropriate to their members' needs."

To read the full white paper, register with Future Finance for free.