Neo-banks. (Source: Shutterstock)
Challenger or neo-banks present a menace to credit unions. However, a greater threat for siphoning members and displacing deposits is coming from the big banks, according to one industry expert.
Jeffery Kendall, executive vice president and general manager, global banking and financial solutions of the Austin, Texas-based Kony DBX, heard how some credit unions think they are in danger of potentially losing members, and, just as significantly, deposits, to these trendy fintech entities. "When I think about challenger banks, I think about digital first banks that have come into existence, and don't have a backing of a traditional bank or charter behind them," Kendall said.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
