NEW YORK— The most revealing shift in credit union innovation may be this: two-thirds of U.S. CUs now rely — or expect soon to rely — on outside fintech partners for mobile and digital payments, according to a January PYMNTS Intelligence report produced in conjunction with Velera.
That finding sits at the center of “Credit Union Innovation Readiness: How Credit Unions and FinTechs Are Innovating Together,” a PYMNTS study based on surveys of 500 credit-union executives and 100 fintech firms. PYMNTS said the research shows how rapidly these partnerships have moved from experimentation to routine operations.
According to PYMNTS, more than half of credit unions now view fintech partners as essential to innovating faster and competing effectively, while nearly two-thirds said those relationships help them scale and move more quickly than they could alone. The report portrays collaboration as a structural change, not a temporary trend.
PYMNTS found that most partnerships focus on upgrading existing products rather than launching brand new ones. Sixty-four percent of credit unions used fintech partners to add features to current products, while 63% expanded digital channels or service delivery through recent collaborations — typically to make services faster, easier, and more accessible.
Risk and compliance are also driving these deals. PYMNTS reported that more than half of credit unions included fraud or compliance improvements in their most recent partnership, often using fintech tools to strengthen authentication, cut false declines, and tighten controls alongside front-end upgrades.
The study suggests that “innovation” is being redefined. Rather than rolling out standalone products, credit unions are prioritizing smoother digital experiences, better mobile access, and tighter operations, PYMNTS said. More than one in five credit unions now rank mobile payments as their single most important area for partner engagement.
Data analytics is a close second. Nearly 70% of credit unions told PYMNTS they rely on fintech partners to build or expand analytics that shape member experience, personalization, and strategic decisions.