While FinTechs were once considered rivals, most financial institutions now recognize FinTech partnerships as an essential part of their strategic roadmap. Yet despite that shift in mindset, few of these partnerships are truly successful — often due to uncertainty around how to initiate and structure them effectively.
Collaboration has long been the foundation of the credit union movement. Velera has always valued the insightful interactions with its credit unions, working to ensure they have the tools needed to compete in today’s rapidly evolving financial landscape. To help bridge the gap between FinTechs and credit unions, Velera launched a Fintech Engagement Program, providing a collaborative space designed to foster innovation between credit unions and FinTechs. The program brings together vetted FinTech companies and a credit union advisory board whose members are committed to disrupting traditional ways of banking, identifying FinTech use cases and participating in proofs of concept. Since launching last year, the program has added 16 FinTechs, spanning areas including artificial intelligence (AI), member engagement and modernized lending.
The Fintech Engagement Program also serves as an internal incubator where Velera can evaluate FinTech candidates to be presented to the Velera Innovation Alliance (VIA) for proof-of-concept solicitation. As financial relationships become more connected and more digital, many credit unions are grappling with how they can maintain trust, support safe innovation and remain the hub of choice for members. Velera is leaning into this opportunity by shaping and influencing innovation through VIA.
An extension of Velera’s Fintech Engagement Program, VIA is a made up of executives from a diverse group of credit unions committed to navigating the opportunities and challenges associated with new technologies, identifying and assessing innovative solutions and introducing new concepts to enable competitiveness and strengthen the sustainability of credit unions in today’s digital world.
One of the topics currently being explored through VIA is open banking, the concept of consumer-permissioned financial data sharing. While it raises questions around risk, regulation and readiness, open banking is ultimately about giving members more control over their financial lives. While open banking is still early in its adoption and understanding across the credit union landscape, it is essential credit unions have important conversations now about leaning into the opportunity.
In addition to open banking, five other VIA proofs of concept are currently underway in multiple areas, including cash flow underwriting, lending modernization and youth banking. VIA is a pivotal player in helping credit unions explore how they can remain central to their members’ financial journeys by shaping changes like open banking rather than resisting them.
By fostering collaboration between credit unions and FinTechs, Velera is not only strengthening connections, but also shaping the future of financial services. Through initiatives like the Fintech Engagement Program and VIA, credit unions are empowered to embrace innovation, adapt to evolving member expectations and remain competitive in an increasingly digital landscape. As these conversations continue, Velera remains committed to driving meaningful change that benefits both credit unions and their members.
