Credit unions can get left behind in the race to bring the most innovative payment technologies to consumers. The main reason credit unions are not at the front of the technology wave is resources. Unlike larger banks, credit unions are more resource-constrained. This can leave CU customers, who are used to great financial service experiences from larger players, wanting more from their CU. Since throwing more money at the problem isn't an option, CUs can look to collaboration instead.
One collaborative-based area that CUs can turn to is faster payments. Faster payments provide a competitive advantage for CUs and also help optimize operations. One such collaboration is between Corporate One Federal Credit Union and Sherpa Technologies. Their goal is to bring Corporate One’s CU members into The Clearing House’s RTP (real-time payments) network. With industry stakeholders working together to get the word out about faster payments and CUs working together to adopt the technology, the entire industry will benefit.
Corporate One has approximately 800 CU members that it provides back-office logistics too. A big reason that Corporate One is able to provide such services is its investment in Sherpa Technologies, which is a subsidiary of Corporate One. Via Corporate One, Sherpa Technologies is a third party service provider to CUs.
“It wouldn’t be prudent for an individual credit union to pursue the same development effort — testing, certification, management of the technology — if we have these things already available, tested and certified that they can plug into and use for their desired use-cases,” said Keith Riddle, CEO of Sherpa Technologies to pymnts.com. “Collaboration is key to making this affordable and to ensure industry partners are aware of this opportunity.”
RTP is already popular with consumers, and now small businesses are increasingly adopting RTP. CUs will see advantages to RTP adoption through real-time loan disbursements and payroll transactions. By offloading the RTP backend, CUs are able to maintain their focus on the customer.
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