Changing While Staying the Same, with Troy Stang of GoWest Credit Union Association
LISTEN NOW
“There are a lot of buzzwords. You have embedded finance and you have banking as a service; everybody has their own definition. So when I have these types of conversations, I like to create some shared meaning. What does it mean to you? What does it mean to me? And I look at embedded finance as the what. It is embedding financial products into digital, non-financial applications. And then, banking as a service is the how. How do we get financial products into a digital, non-financial application?”
Episode Summary
In this episode of The Digital Banking Podcast, host Josh DeTar spoke with Troy Stang, the president and CEO of GoWest Credit Union Association. The takeaway from this conversation is that credit unions need to work hard to change in some ways and work hard to stay the same in other ways.
Not surprisingly, Stang called on credit unions to embrace digital transformation. Staying at the forefront of financial technology is paramount for any credit union that hopes to survive in the years ahead.
However, the credit union movement was built on the cooperative model, a model that demands credit unions know and understand the unique needs and challenges of their member. A model that demands each credit union knows and understands what makes its members different from the members at every other credit union. A model that demands all credit unions bring that personalized, high-touch feel to the world of digital finance.
As Stang and DeTar make clear, this is what makes credit unions credit unions.
Key Insights
⚡ Credit Unions: A Deep Connection to Local Communities:
Stang emphasized the unique understanding credit unions have of their local communities. He discussed the diversity of credit unions, from those serving ranching communities to those focused on education. This deep understanding of their market segments and the human element is a key strength of credit unions. Stang also shared the evolution of his grandfather’s credit union, highlighting the importance of adapting to changing market conditions while staying true to the core principles of credit unions.
⚡ The Evolution of Lending: A Personal Perspective:
Stang shared his personal experiences with lending in credit unions. He discussed how lending decisions were made based on the personal knowledge of the borrower, including their character and commitment to the community. He also talked about the unique lending practices for agricultural businesses, highlighting the importance of understanding the individual stories of each member. This insight underscores the personalized approach of credit unions in serving their members.
⚡ Navigating the Digital Transformation in Credit Unions:
Stang explored the future of credit unions in the digital age. He emphasized the need for credit unions to maintain their unique identity while embracing digital transformation. He discussed the challenges and opportunities presented by digital behemoths and new market entrants. This points to the need for credit unions to evolve while staying true to their fundamentals.
Guest At A Glance
Stang’s passion for the cooperative community model was shaped by his early experiences in a small Catholic credit union started by his grandfather.
