Credit unions partner with fintech to compete with big banks

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When it comes to innovation, credit unions can appear to be at a disadvantage. Large banks, with deeper budgets and bigger staffs, often have more resources to invest in new technology and evolving customer expectations.

The MD|DC Credit Union Association is well aware of the challenges and is taking steps to help its members remain competitive by partnering with fintech firms.

Fintech, short for financial technology, includes the digital tools — such as mobile apps, automated underwriting systems, and payment platforms — that are reshaping how financial services are delivered. For credit unions, these technologies are often accessed through partnerships rather than built in-house.

“A lot of fintechs, like Zelle, were trying to go direct to consumer. The shift occurred when they partnered with credit unions to deploy solutions like financial education, mobile banking and so forth,” said John Bratsakis, president and CEO of the MD|DC Credit Union Association, referring to the platform that shut down its standalone app in 2025.

A symbiotic relationship

What sets credit unions apart from the big banks are relationships, industry professionals say.

“As a not-for-profit financial institution that operates in a competitive financial market, it’s all about the community you serve,” said Bratsakis, noting that profits are returned to members through lower loan fees, higher savings yields and lower loan rates, to name a few.

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He added that credit unions are increasingly partnering with organizations like Curql Collective, an Iowa-based fintech investment fund focused on the credit union industry.

Nick Evens, president & CEO of Curql Collective, said the organization’s mission has evolved alongside the industry.

“We create an ecosystem to thrive together,” he said. “Every day, big banks are competing for the same members, so staying competitive is critical.”

Part of that is the responsible use of artificial intelligence, which Evens said is already shaping how financial services are delivered.

“AI is going to impact members’ lives in multiple ways, every day. When we bring a fintech to a credit union, we know it’s been vetted and is really very good,” said Evens.

Evens noted that fintech spans a wide range of services, including but not limited to mobile banking, fraud detection, cybersecurity, lending and member engagement tools. Curql evaluates companies across categories to determine where they best fit within a credit union’s operations.

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Scale matters as well.

“The problem with the small credit unions is they don’t have the bandwidth to do this on their own — we’ve done the work for them, which eases the burden,” Evens said.

Other tools

Jason Reimer, executive vice president and chief infrastructure & experience officer at State Employees’ Credit Union of Maryland, said partnerships with firms like Curql Collective have delivered tangible benefits.

“Investment in emerging companies can power different parts of our credit union ecosystem,” he said.

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Reimer pointed to a recent upgrade to SECU‘s account opening system, using New York-based fintech platform MANTL, which improved speed and security.

“An individual can open an account in five minutes and a business in 15. Previously, it would have taken 45 minutes for a consumer, and businesses could not do it at all,” he said.

SECU has also implemented Silvur, a Delaware-based retirement-planning tool designed to help members aged 50 and above to estimate how much money they will need in retirement.

“Building that internally would require hiring a whole host of experts in the field,” Reimer said. “Through this partnership, we can offer that expertise directly to our members.”

Another tool is California-based SavvyMoney, which provides credit monitoring and personalized financial guidance.

“We have seen over 2,500 members in the last six months set credit goals. It offers real-time recommendations and helps members improve their financial standing,” said Reimer.

Credit union leaders said this kind of collaboration helps them keep pace with larger institutions without sacrificing their core mission: delivering personalized, community-focused financial services.