A Tale of Two Mindsets: How CUs and FinTechs Can Turn Culture Clash Into Collaboration

As noted in a recent Tracker from PYMNTS Intelligence and Velera, credit unions (CUs) are at a critical inflection point in their modernization journeys. Driven by rising member expectations for digital-first, artificial intelligence (AI)-enabled and embedded financial experiences, CUs are having to make innovation an increasingly urgent priority. At the same time, many FinTechs, encountering slower momentum with large national banks, are gravitating toward CUs as strategically aligned innovation partners. PYMNTS Intelligence data showed that FinTechs’ partnerships with CUs grew by nearly 20% last year, even as their partnerships with national banks fell by more than half, signaling a meaningful realignment in strategy.

Yet while both sides see opportunity, collaboration is often slowed by mismatched expectations around speed, governance and success metrics. New data indicates that resolving this “culture clash” is not impossible, however. It will simply require CUs and FinTechs to align on shared goals and a cooperative mindset.

External Partners Are Now Central to CU Innovation

Not Seeing Eye to Eye: FinTechs and CUs Measure Success Differently

How Credit Unions and FinTechs Can Bridge the Culture Gap

From Partnership Intent to Measurable Impact

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External Partners Are Now Central to CU Innovation

As digital capabilities become table stakes, CUs are increasingly turning to external partners to accelerate innovation and stay competitive. What was once a supplemental strategy has quickly become a core part of the credit union innovation playbook.

CUs increasingly view FinTech partnerships as indispensable.

In just eight months last year, the share of CUs saying partners help them innovate “much faster and at much bigger scale” than they could independently more than doubled. That shift reflects growing recognition that partnerships now function as core infrastructure for modernization.

New PYMNTS Intelligence data shows that 56% of CUs in November 2025 said FinTech partnerships significantly accelerated their innovation in this manner, up from just 22% in March of that year. Among “early launchers”—institutions that prioritize moving first—that figure rose from 36% to nearly two-thirds (65%) during the same time interval. For smaller CUs in particular, partnerships provide access to capabilities that would otherwise be out of reach, enabling speed and scale without prohibitive internal investment.

65%

of “early launcher” CUs in November 2025 said FinTech partnerships help them innovate at a much faster pace than they could on their own—up from 36% in March.

Even when implementation timelines extend beyond original expectations, CUs tend to view delays as acceptable trade-offs tied to governance complexity, integration challenges or regulatory requirements. Progress is measured incrementally rather than strictly against timelines. A meaningful share—nearly 31%—of early launchers reported that return on investment (ROI) from their most recent FinTech collaboration has already been fully achieved, reinforcing optimism about the long-term payoff of partnership-led innovation.

Payments and data capabilities are emerging as top priorities.

PYMNTS Intelligence found that fully two-thirds (66%) of CUs say external partners will support mobile and digital payments over the next three years, and more than one in five (22%) now identify payments as the single most significant area of partner support, more than double the share (10%) reported eight months earlier. Data analytics shows a similar pattern: Nearly 70% of CUs say partners already provide or soon will provide analytics support, underscoring the central role of data in improving decision-making and member experience.

Speed remains the most frequently cited benefit. Sixty-one percent of CUs say faster implementation is a key advantage, and 18% rank it as the single biggest reason to partner. Flexibility follows closely, with 54% pointing to greater agility as markets and member expectations evolve. Importantly, partnerships are also viewed as risk-mitigating tools. Majorities cite cost savings, operational efficiencies, enhanced risk management (58% of respondents) and access to new technology (52%), reflecting a pragmatic approach to innovation that balances growth with resilience.

Credit unions are operationalizing these FinTech partnerships.

Real-world collaborations underscore how credit union service organizations (CUSOs) and FinTech-adjacent partners are playing an expanding role in helping CUs modernize core payments infrastructure while maintaining a member-first focus. For example, Ohio-based Kemba Credit Union selected Velera to provide debit and credit card processing services beginning in August, citing greater flexibility, member control and alignment with long-term goals. Similarly, Indiana-based Financial Center chose Velera for debit, ATM and credit card processing support, emphasizing operational efficiency, enhanced security and improved member value.

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Not Seeing Eye to Eye: FinTechs and CUs Measure Success Differently

Even when CU-FinTech partnerships are built on shared goals, the two sides often walk away with very different assessments of success. Diverging views on timelines, ROI and execution reveal a perception gap that can undermine collaboration performance.

CUs and FinTechs have different perceptions of delays and missed expectations.

77%

of CUs say their most recent FinTech implementation took longer than planned.

PYMNTS Intelligence data shows that while 77% of CUs acknowledged that their most recent implementations took “longer than planned,” none called these delays significant. A full breakout of the data revealed that just under 20% of CUs said the timeline went as planned, and slightly more than 3% said it was shorter than expected. From the FinTech perspective, while a slightly more generous share—22%—said projects met planned timelines, none reported finishing ahead of schedule. Moreover, FinTechs were far more likely to characterize time overruns as significant (12%) rather than incremental.

The intensity of delay also differed by provider size. Among larger-revenue FinTechs, a startling 25% reported timelines running significantly longer than planned, compared to just 4% among smaller providers. This divergence highlights how their definitions of success are shaped by different metrics. Larger FinTechs manage more complex, multi-client implementations with higher customization demands than smaller providers, making significant time overruns a major sticking point.

Misalignment on operational goals further hampers collaboration.

ROI expectations further expose the CU-FinTech perception gap. For CUs, ROI often includes softer but strategically meaningful gains. CUs prioritize operational outcomes: faster service delivery (61%), improved staff efficiency (54%), stronger compliance and risk management (53%), and higher member satisfaction (53%). Revenue growth and member acquisition rank lower, cited by 44% and 47%, respectively.

FinTechs, on the other hand, evaluate ROI more narrowly than their CU counterparts. Only 16% say ROI objectives of partnerships have been fully achieved, according to PYMNTS Intelligence, while 72% report partial achievement and 12% say ROI has not yet been realized. This contrast reflects fundamentally different definitions of “return.” CUs may credit long-term readiness and risk reduction as wins, while FinTechs focus on delivery efficiency, resource utilization and repeatability across clients.

Cultural and organizational friction compounds these differences. Nearly 64% of CUs cite misalignment in goals or culture with FinTech partners, and 59% own up to internal decision-making complexity as a source of collaborative friction. Governance structures that credit unions view as essential safeguards are often experienced by FinTechs as constraints on execution speed.

However, these mismatches do not indicate failure. Instead, they reveal the need for clearer alignment on timelines, governance structures and success metrics at the outset. Partnerships perform best when both sides agree not only on the solution but also on how progress and ROI will be measured along the way.

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How Credit Unions and FinTechs Can Bridge the Culture Gap

Bridging the gap between CUs and FinTechs demands deliberate alignment on goals, processes and expectations. The most successful partnerships are those that treat culture, communication and trust as core design elements rather than afterthoughts.

CUs and FinTechs have strong incentives to build durable partnerships.

By partnering, CUs gain improved member experiences, operational efficiency and competitive positioning, while FinTechs gain access to mission-aligned institutions and established member bases for piloting and scaling innovation. The challenge lies not in shared intent, but in execution.

Execution,

not shared intent, is the primary challenge when it comes to CU-FinTech collaborations.

Structured evaluation frameworks can help close this gap. Filene’s FiLab recommends a three-step approach to partnership selection and management. First, CUs should identify three to five strategic goals they aim to achieve through FinTech collaboration, ensuring alignment across leadership and member-facing teams. Goals may include enhancing member experience, improving scalability or modernizing legacy technology.

Second, institutions should create a detailed map of their existing legacy technology providers. These partners manage current core services, payment systems, loan origination systems and data warehousing, making them critical stakeholders in integrating and implementing new FinTech solutions. Armed with this information, CUs can better anticipate integration timelines, costs and dependencies that often derail projects. Understanding this ecosystem upfront reduces surprises during implementation.

Third, CUs should evaluate viable FinTech partners based on proven compatibility with legacy systems and demonstrated success delivering the capabilities tied to strategic goals.

Engagement models help bridge the gap between CUs and FinTechs.

Industry groups increasingly emphasize structured engagement and shared learning as ways to move partnerships from intent to impact, a theme echoed by CUInsight’s analysis of collaborative FinTech models. These industry programs emphasize collective intelligence, shared resources and expert guidance to help CUs move from recognizing FinTech value to extracting it in practice. Velera’s FinTech Engagement Program, for example, exemplifies this approach by convening vetted FinTechs and a CU advisory board to identify use cases, test proofs of concept and accelerate innovation collaboratively.

Ultimately, bridging the culture gap requires intentional design. Successful partnerships align expectations around pace, transparency and accountability, while fostering trust through honest communication and active listening. When CUs and FinTechs co-design not just solutions but also processes and definitions of success, collaboration shifts from potential to performance.

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From Partnership Intent to Measurable Impact

As CU-FinTech partnerships accelerate, success will depend less on access to technology and more on alignment around expectations, execution and definitions of value. Organizations that proactively address cultural and operational gaps will be best positioned to turn partnership potential into sustained performance.

PYMNTS Intelligence offers the following actionable roadmap for CUs and FinTechs considering joining forces:

Align on success metrics early. Establish shared definitions of timelines, ROI and implementation milestones at the outset to prevent perception gaps later in the partnership.

Design governance for speed and accountability, streamline approval processes and clarify decision rights to balance regulatory rigor with execution velocity.

Map integration realities upfront. Conduct a comprehensive review of legacy systems, third-party dependencies and data flows to set realistic timelines and cost expectations.

Invest in trust and communication. Prioritize transparency, responsiveness and active listening to build credibility and sustain long-term collaboration.

Ultimately, the strongest partnerships will be those that treat alignment as a strategic discipline, not a soft skill. By co-designing both solutions and processes, CUs and FinTechs can move from episodic collaboration to repeatable, scalable innovation.

As an integrated FinTech solutions partner, Velera fosters successful collaborations through disciplined alignment—on goals, processes and operational realities. When credit unions and FinTechs build that foundation alongside each other, they’re not just speeding up implementation; they’re creating the conditions for continuous innovation and long‑term value. The organizations that treat partnership as a shared craft, rather than a one‑time transaction, will be the ones that turn big ideas into scalable outcomes for the members we serve together.”

Vladimir Jovanovic
Vice President, Innovation, Velera