The collaboration will see Velera and Black Dragon work toward “creating and scaling” FinTechs that allow credit unions “to transform their businesses and optimize their member service advantages,” the companies said in a Monday (June 30) news release.
Velera joins other credit unions and CUSOs that have teamed with Black Dragon. Velera President and CEO Chuck Fagan said in the release that Black Dragon “leaders are prominent members of the community they serve.”
“Through this partnership, we are confident that credit unions will continue to find success in providing top-quality services to their members,” Fagan said in the release.
Digital innovations are increasingly important for credit unions.
“Baby boomers dominate credit union membership, making up 39% compared to 31% for millennials and Generation Z combined, and the average credit union member age stands at 53 — older than the U.S. average of 38.5,” PYMNTS reported June 18. This puts credit unions at risk of losing ground to other financial institutions.”
To attract younger members, credit unions should focus on digital and mobile offerings, according to the PYMNTS Intelligence report “From Aging to Z: How CUs Can Capture Younger Generations,” a Velera collaboration.
“Attracting younger members is not merely about growth; it is vital for survival and maintaining relevance in an evolving financial landscape,” PYMNTS wrote. “A primary reason for this generational gap is that many millennial and Gen Z consumers are gravitating toward digital-first banks. For credit unions to close this gap and secure their future, prioritizing sophisticated mobile and digital products and services is not just an option, but a fundamental necessity.”
Gen Z trails older consumers in credit union engagement, the report said. A prime obstacle is a lack of familiarity with credit unions to do banking. The research found that 30% of Gen Z consumers were not aware that credit union membership is even an option, with just 20% having any contact with a credit union, compared to 33% of baby boomers.
For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.
