16 THE NAFCU JOURNAL March–April 2022 of the solution to the causes that are important to them. Fintechs can make all that happen.” He added, “We have to look at our members’ needs holistically and go beyond traditional banking.” Challenges and Opportunities One of the challenges with fintech partnerships is actually related to regulatory issues, said Morris. “The use of artificial intelligence (AI) solutions, especially in underwriting loans, is a regulatory concern if the credit union does not fully understand how the model works or doesn’t monitor outcomes on a regular basis,” he said. “Testing the model and using well-known tactics to manage legal risk is important, so be cognizant of AI from a regulatory perspective.” In some cases, partnering with a fintech requires members to switch from one website to another to conduct business, but the emergence of application program interfaces (APIs) is changing the structure of fintech-credit union relationships, said Vince Passione, CEO and founder of LendKey. “Use of APIs in these solutions will create a seamless customer experience that strengthens the relationship between the credit union and the member.” Although fintech partnerships are usually associated with member-facing solutions, Passione pointed out that these partnerships can provide operational efficiencies as well. “For example, AI has applicability beyond just enhancing the credit decisioning process and can be utilized to customize member outreach distinguishing between preferences like phone, email or text,” he said. “Robotic process Open-access platforms that allow credit unions and fintechs to innovate together, are making partnerships and implementation of programs happen faster. JONATHAN PRICE, EXECUTIVE VICE PRESIDENT OF EMERGING BUSINESSES, CORPORATE AND BUSINESS DEVELOPMENT FOR Q2
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