Selecting a fintech partner for credit unions is more important than ever. As expectations for digital experiences continue to increase, there has never been a more opportune time for credit unions to consider partnering with a fintech company.
Credit unions are often behind the competition, because their systems are unable to keep up with rapid change.
Much like the ease of using an app on your phone to book an appointment, people are accustomed to convenience, time, and accessibility, including for financial services. To meet the needs of members, credit unions must digitally transform or risk becoming irrelevant.
A recent article by CUInsight highlights the importance of organisations in the financial sector choosing the right fintech partner. These partnerships are crucial if credit unions are to remain competitive.
Why choose NestEgg?
Selecting a fintech partner for credit unions can be a challenge. Credit unions need to ensure they choose the right partnership that best meets the needs of their business. The following factors are considered by CUInsight to be essential when making that choice.
Technology and user experience
It is important that technology drives good member experience.
NestEgg’s services are not only easy for lenders to use. But more importantly, borrowers find our online application service really easy. For example, Central Liverpool Credit Union members rate the ease of our application process 9.7/10.
Security and compliance
Fintechs need to adhere to ensure robust security processes are in place.
NestEgg is ISO27001 verified. This certification independently verifies that we follow information security best practices with our technology, people and processes. Additionally, we are regulated by the Financial Conduct Authority (FCA) as a Credit Information Services Provider and a Broker. This means we’ve had our policies and procedures, especially in relation to ensuring good consumer outcomes thoroughly assessed by an external regulator.
Integration and scalability
The ability to integrate software with existing systems is extremely important.
NestEgg integrates with five core systems providers used by the responsible lending sector. This list is growing every month.
Read our case study on how we integrated with Progress to help Cambrian Credit Union increase loan applications by 25%.
Implementation speed and reliability
Time is an important factor to minimise disruption and gain the benefits from a fintech partnership as soon as possible.
NestEgg’s new Loan Matching service can help you bring new products to market within minutes. For open banking we can get you up and running within one week. In most cases on-boarding for our decision engine can be done within one month.
Return on Investment (ROI)
The cost of partnering with a fintech should be less than the value you get back.
On average, new users of our decision engine and online application service are seeing a 20-40% increase in applications.
For example, Wirral Credit Union saw a 14x increase in new member applications after going live with our decision engine software.
The ROI for credit union members should also be emphasised. In the last year NestEgg has helped 40 lenders decision a loan every minute.
The speed of decisioning enhances financial inclusion and reduces the risk of individual’s going to a high cost credit lender. If we compare the cost of borrowing £500 from a credit union as opposed to higher cost credit, lower income households on average save £85 every minute of every day. This is incredibly important as those with lower income are afforded some breathing room. Borrowers increase their savings and improve their financial wellbeing.
Customisation and flexibility
Software must meet your needs. At NestEgg, we are able to align automated lending decisions with your lending policy. There are standard rules for products such as mortgages, family loans and revolving credit. However you can customise rules and bring new products to market in minutes.
Analytics and insights
Effective fintech partners should provide comprehensive analytics and insights into member behaviour and patterns.
Collaboration, support, and reliability
The collaboration, support and reliability that fintech partners offer beyond implementation is important to consider.
We work with suppliers and our lenders to design new features that deliver great business benefits. We also work with government bodies, such as Innovate UK to develop highly innovative products and services. Additionally, our online support service for lenders has an average response time of less than 5 minutes. Consequently there is no waiting around to get the support you need.
Reputation and track record
One of the most important things to consider is the reputation of the fintech partner you choose.
At NestEgg we are proud of our achievements during the last five years:
- Finalists in the Consumer Credit Awards 2023 for ‘Technology Partner of the Year’
- Being a part of Project Innovate for Cohort 6 of the FCA Sandbox
- Finalists in the Nesta Rapid Recovery Challenge
- We are Fellows of the Finance Innovation Lab
But it is the track record of delivering for clients that really counts. Read our case studies to find out more.
Get in touch today
If you are looking for a fintech partner for credit unions and want to make better lending decisions for your organisation and customers, book a demo below.