ARLINGTON, Va.—About three-fourths of credit unions that participated in NAFCU’s February Economic & CU Monitor survey said they are “very” or “somewhat” concerned about the rise of fintech companies and their potential impact on the financial marketplace.
The survey results that the vast majority of respondents think fintech companies could be “significantly” disruptive to the current market – largely due to changes in consumer preferences that favor “fast, innovative and accessible technologies,” the Monitor notes. And the majority of respondents cited credit or digital payments as fintech market segments with the most potential to directly compete with credit union services.
More than 90% of credit unions surveyed support federal regulation of fintech companies, and more than 70% of those are in favor of fintech companies being under the same regulatory standards that govern traditional financial institutions. Respondents identified consumer protection, capital and liquidity requirements, and cybersecurity and data security standards as the key areas in which regulatory oversight of fintech companies is needed.
This month’s Monitor also notes that the credit union industry ended 2016 with estimated membership growth topping 4% and loan growth exceeding 10%.