Credit unions have always played an important role in Canada’s financial ecosystem. Grounded in community values and member-first service, they’ve built a reputation for trust and reliability. But today, those foundations are being challenged by a fast-moving digital economy.
Across the country, consolidation is picking up speed. In Alberta, Servus and ConnectFirst are joining forces. In Ontario, Northern Credit Union and Copperfin recently merged. And in British Columbia, a potential three-way merger could reshape the regional landscape. It’s happening all across Canada—and these moves point to a shared realization: staying competitive now requires more than strong local roots. It demands scale, agility, and above all, innovation.
With more Canadians expecting instant, digital-first service, credit unions face a pivotal question: how do we keep up with rising expectations while preserving what makes us different?
Let’s explore how credit unions can stay relevant in an era of rapid change, what top-performing institutions are doing to lead the way, and how the right fintech partnership can help level the playing field.
The shift in consumer expectations is here. Canadians, especially younger generations, are looking for financial services that mirror the speed and convenience of the rest of their digital lives. That means mobile-first tools, real-time payments, and frictionless user experiences are no longer nice-to-haves but baseline requirements.
This is especially true for Gen Z and Millennials, who tend to be more open to switching financial institutions if it means better digital access. For credit unions, this puts member loyalty at risk. A familiar brand and community feel might bring members in, but without seamless digital tools, it won’t be enough to keep them around.
Data from PYMNTS shows that more than half of credit union members are active users of mobile banking, and nearly a quarter of Gen Z consumers say they see mobile credit card management apps as a top innovation priority. If credit unions can’t meet those expectations, someone else will—whether it’s a big bank or a nimble fintech.
Despite the challenges, some credit unions are proving it’s possible to thrive in a digital-first world—and they’re doing it by leaning into innovation, not shying away from it.
According to PYMNTS research, top-performing credit unions share a few key characteristics. First, they invest more boldly in technology, allocating an average of 5.6% of their assets to innovation. They’re not waiting years to catch up. They’re prioritizing digital transformation now.
Real-time payments are a standout example. Nearly 90% of top performers already offer them, giving members the kind of immediacy they’ve come to expect from everyday apps and services. These credit unions are also tapping into member feedback to guide product development and rolling out new features through small-scale pilots before wider adoption.
Another common trait? Partnership. The best credit unions know they don’t need to build everything in-house. Instead, they collaborate with fintech providers to speed up time to market and launch more member-centric products. In fact, they tend to offer nearly double the number of third-party-developed solutions compared to their lower-performing peers.
The takeaway is this: success isn’t about size—it’s about mindset. Credit unions that are willing to rethink how they serve members, and who they work with to do it, are coming out ahead.
Credit unions don’t need to become tech companies, but they do need to act like organizations that understand the speed of change.
That’s where fintech partnerships come in. Collaborating with trusted technology providers allows credit unions to move faster, reduce development costs, and deliver modern payment experiences that members actually want to use. From tap-to-pay terminals to mobile wallets and real-time transfers, today’s payment landscape is evolving quickly. Fintechs help credit unions keep pace without having to reinvent the wheel.
Here are a few ways credit unions can modernize by partnering with a fintech:
Credit unions across North America are embracing fintech and payment partnerships to modernize operations and better serve their members. Coast Capital Savings, for example, partnered with nCino to streamline commercial lending using cloud-based workflows. In the U.S., Shoreline Credit Union teamed up with VizyPay to offer small business members affordable and efficient payment processing services. Meanwhile, Veridian Credit Union partnered with Alacriti to deliver real-time payments through networks like FedNow, allowing members to make instant loan payments and access faster transactions.
These kinds of collaborations highlight the opportunity for Canadian credit unions to work with trusted third-party providers to drive innovation tailored to the Canadian market.
They show that modernization doesn’t have to come at the cost of identity or control, but rather by making strategic moves that better serve members while staying true to your roots.
At DC Payments, we’ve seen firsthand how the right partnership can make innovation feel less overwhelming and more achievable. Our secure, scalable payment solutions are designed to help credit unions and businesses offer seamless transactions across digital and in-person channels. Whether you’re looking to modernize your payment processes, build a mobile app, or expand your digital wallet capabilities, we’re here to help you meet members where they are.
The pressure to modernize is real, but so is the opportunity. Credit unions that move decisively, embrace innovation, and tap into the right partnerships are primed to pave the way. At DCPayments, we help credit unions deliver secure, seamless payment experiences that meet today’s expectations. See how we can support your next step forward and explore our digital-first payment solutions today.