18 THE NAFCU JOURNAL March–April 2022 Robotic process automation can be used to integrate legacy systems with newer platforms as an interim step to a full systems migration, eliminating manual steps and providing audit and quality controls. VINCE PASSIONE, CEO AND FOUNDER OF LENDKEY automation can be used to integrate legacy systems with newer platforms as an interim step to a full systems migration, eliminating manual steps and providing audit and quality controls.” Factors to Consider There are a number of factors to consider before working with a lending fintech, suggested Merrill. “First, does the type of loan fit with your credit union’s strategic direction for the budget and balance sheet? You must be comfortable with the loan,” he said. “Then, decide what type of relationship you want—partnership or vendor-customer. I prefer to work with partners so we build trust, grow together and develop a mutually beneficial relationship that aligns with our organization’s goals to serve members.” In addition to understanding how the fintech’s business model works, be sure to clearly identify who does what, recommended Stevens. “Who originates the loan and who services the loan are questions to ask, and then you can look closely at the impact on the credit union’s resources,” he said. “A deep dive into the company’s regulatory compliance processes, information security and a clarification of quality control—how they and the credit union will monitor results—is also important.” Overall, the due diligence process before choosing a fintech is similar to due diligence for any business vendor or partner, said Stevens. “We always talk to three or more credit unions that have worked with the fintech to see if there have been compliance issues or other concerns that we need to consider.” Fintech partnerships mean that technology is no longer a limiting factor for credit union success, said Novak. “As long as credit unions and fintechs are both flexible as they work together to create services and products that members want and credit unions can develop new business while still protecting member assets,” he said. “This flexibility might mean thinking outside the box for the credit union, but it will result in a more agile, more member-centric approach to serving members.”
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