Filene Center of Emerging Technology

Trust has always mattered to the financial services industry; however emerging technology has created a challenging landscape as credit unions face tremendous pressure to differentiate themselves from disruptors and other traditional financial institutions. At the same time, the dynamics of trust and mistrust of the financial services industry from community members of low-income and historically marginalized backgrounds may leave many of these community members locked out of a system not designed to accommodate their financial lives. Oftentimes, these members’ financial needs have been met elsewhere.

This report provides a guide for implementing a new way to engage with and better understand credit union members using Photovoice. Photovoice puts cameras into participants' hands so they may capture aspects of their daily lives and experiences in order to share photos with others. Photovoice provides decision-makers with powerful data about the lives of their members and allows credit unions to identify areas for member and product growth, to tailor marketing campaigns, and to measure community impact. Photovoice may also further inform diversity, equity, and inclusion practices by uplifting voices of historically underserved communities and surfacing insights for how to best serve them.

When I was asked to write something about ChatGPT in relation to credit unions, naturally, I created an account with OpenAI, the company that developed this so-called generative AI tool, and entered the query: “Write me a 700 word essay on the use of ChatGPT for credit unions.” The results, which are reproduced on the right, were pretty uncanny, and pretty darn good.

Today, most CBDCs exist only as proposals, prototypes, or trials, and there is little consensus on questions around efficiency, surveillance, and financial inclusion. However, with countries around the world beginning to issue their own versions of CBDCs and the United States Federal Reserve publishing a long-anticipated report on CBDCs earlier this year, there is a growing recognition that CBDCs will have an important role to play in the digital landscape of the future. As central banks begin their journey in considering and implementing CBDCs, understanding the variety of forms CBDCs can take, as well as their associated risks and opportunities, becomes crucial for credit unions.

With so many options for ATM service delivery, how can credit union leaders make wise decisions to meet their members’ needs? Set against the backdrop of rapidly changing consumer behavior and expectations during COVID-19, this report explores the past, present, and future of the unpretentious automatic teller machine—and how its evolution impacts credit union strategy today.

In April 2020, the COVID-19 virus was being transmitted around the world, and with it, waves of misinformation and sometimes intentional disinformation were also spreading. Dr. Joan Donovan, Research Director of the Shorenstein Center on Media, Politics, and Public Policy at Harvard University’s Kennedy School of Government and renowned scholar of technology, media, and society, sat down with Dr. Bill Maurer, Filene Fellow for Emerging Technology, and Filene’s Holly Fearing and Taylor Nelms, to discuss what credit unions can do to combat the spread of disinformation and misinformation, and sustain the level of trust they’ve built with their communities and their members.

Listen to Filene Fill-In podcast, Episode #66, Managing Misinformation: https://www.filene.org/podcast/ep-66-managing-misinformation

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted on March 27, 2020, to provide emergency relief to consumers and businesses suffering from the economic fallout of the COVID-19 pandemic. The CARES Act contains a section (Sec. 4021) specifically addressing the credit reporting consequences of the pandemic. Even with direct stimulus payments, increased unemployment benefits, and the Paycheck Protection Program, consumers are facing dire financial circumstances. The expiration of relief payments and enhanced unemployment protection on July 31 has only made their situation more precarious.

Digital transformation is here with a vengeance, whether we like it or not. The global COVID-19 pandemic has people paying with mobile apps instead of cash, applying for and receiving assistance online, and coping with anxieties around housing, employment, debt, and even bankruptcy. The cascading consequences of the pandemic means that credit unions must urgently engage with business reinvention in order to continue their mission of service to their members’ financial well-being. How can this mission be sustained even as online becomes the dominant way they deliver products, offer support, and work with members to solve problems?

The old era of neighborhood branch gathering places no longer looks tenable as a new era dawns of self- and curbside-service, constant online connectivity, and conversation in virtual spaces.

How can credit unions differentiate on trust? This report reviews a key area where trust is increasingly at a premium: the use of consumers’ data in algorithmic credit scoring. With this change comes new questions and concerns, especially about the potential for bias and discrimination in algorithmic underwriting.

Fintech-based personal financial management (PFM) apps are providing new ways for budgeting and investing. In an effort to attract or retain Gen Z and Millennial members, financial institutions have been quick to adopt products similar to Mint or Acorns. In the race to provide these services, few financial institutions have reviewed and explored the value that such products provide, and how people interact with and feel about budgeting and investing with these new apps. Filene piloted a study that tested three PFM apps for budgeting (Mint, Wally, and You Need A Budget) and two for investing (Stash and Acorns). Twenty-seven participants between the ages of 18 and 34 used an assigned app for one month. Each participant was interviewed before and after using the app. Focus groups were held to provide additional insights.