Credit unions can compete, grow, and win member loyalty with open banking

If you are a credit union leader, you’re already aware that member expectations are quickly evolving. Your members want fast, easy, and personalized digital experiences. And big banks and fintechs are already providing that for them. 

Open banking gives credit unions of all sizes a powerful way to compete in this digitally-driven financial ecosystem, stay relevant, grow membership, and serve existing members better than ever before.

What is open banking and why should credit unions care? 

Open banking allows members to securely share their financial data with apps and services they want to use, from budgeting tools to lenders to payment platforms.

For years, this data sharing was done through screen scraping, where consumers shared online banking user names and passwords. But today, secure APIs (application programming interfaces) power open banking, are giving members control over what data they share, with whom, and for how long. 

Open banking is already mainstream. In fact, in a 2024 white paper titled “Open Banking, Open Possibilities,” Visa reported that 91% of Americans have connected their financial accounts to a third-party app, while 96% of Gen Z consumers have done so. 

Your members are already participating in open banking whether they know it or not. The real question is whether your credit union is ready to securely and competitively be part of that experience. 

Key benefits of open banking for credit unions 

For credit unions, open banking isn’t just about data. It’s about delivering better service, reducing risk, and competing with confidence. 

• Smarter, fairer, lending decisions: Access real-time cashflow data to serve gig workers, small business owners, and thin-file members often not captured by traditional credit scores.
• Faster, frictionless experiences: Automate processes like income verification, removing pain points associated with pay stubs or bank statement uploads.
• Member protection: Replace risky screen scraping with secure API connections, giving members control over their data while safeguarding your systems.
• Regulatory readiness: The CFPB’s 1033 rule will require many credit unions to provide secure data access. Early adoption of open banking ensures compliance and competitive edge. 

Getting started doesn’t need to be difficult 

Open banking may sound like a heavy technical lift for your credit union, but it doesn’t have to be. It is wise for credit unions to start small, stay focused, and choose partners who understand their unique challenges. 

Start with a clear use case, like improving lending processes or offering better digital money management tools. Partner with a trusted open banking solutions provider like Akoya to handle the technical implementation securely and efficiently. 

Open banking is about better member experiences 

At the end of the day, open banking allows you to see your members more completely and understand their full financial picture, their challenges, their goals, and how you can help them be successful. 

In a world crowded with fintechs and big banks, credit unions have something priceless: authentic relationships and member-first values. 

Open banking will help your credit union’s inherent strengths shine even brighter through secure and transparent financial data sharing, fairer lending, and outstanding member experiences. 

Make your credit union a leader in open banking and fairer lending. Get a demo of Akoya's open banking and financial data sharing solutions for credit unions.