JACKSONVILLE, Fla.—Credit unions are more likely to prioritize investing in digital channel functionality than global, regional and community banks, a new study shows.
However, more than one-quarter of credit union executives believe their digital investments are "too high." Although not a top priority, credit unions are also investing more in ATMs than global or regional banks, reveals a new FIS report, which surveyed U.S. bank and credit union executives.
For credit unions and community banks, investing in faster payments systems was among the top two priorities, reported NAFCU in its analysis.
In addition, the FIS survey compared bank executives' opinions to those of small-to-midsize businesses (SMBs) that use banks' services. Within payment services, SMBs indicated they need more payroll and bookkeeping tools than banks are offering.
Sixteen percent of SMBs said they are likely to switch banking providers within the next year – competitive fees, referrals from other companies and access to loans were the main reasons, noted NAFCU in its analysis.
The report also revealed that credit unions and smaller community banks view tech companies as a significant competitive threat.