NEW YORK–The technology challenges to America’s small credit unions and especially those serving low-income Americans have been profiled by Bloomberg Business Week.
Referring to many credit unions as a “paycheck-to-paycheck life preserver,” the Bloomberg Business Week report featured Cathie Mahon, chief executive officer of the National Federation of Community Development Credit Unions, who highlighted some of the issues CU members of the Federation face in attempting to serve those markets.
“Our smallest members pay more for software than personnel,” Mahon told the publication. “They’re negotiating one-off contracts all the time.”
The Federation serves 235 credit unions.
The publication noted that from 2007 to 2012, Mahon led New York City’s Office of Financial Empowerment, which was then-Mayor Michael Bloomberg’s initiative to educate, empower, and protect low-income residents when it comes to their financial resources. After joining the Federation, Mahon began working in 2015 with Birmingham, Ala.-based technology provider EPL Inc. to develop a platform called CU Impact that would update account balances, power every auto bill pay, and fuel every ATM visit.
“In 2016 she and EPL negotiated a contract for members at a discount—unheard of in a business where investment in these types of platforms is very unusual,” Bloomberg reported.
For the full story, go here.