Bigger doesn’t always mean better across financial services — especially when it comes to innovation.
And as financial technology reshapes the payments industry, even smaller, regional credit unions are finding that they must adapt quickly or risk falling behind.
The CFOs of these financial institutions are helping lead the charge, Lanny Berlingieri, CPA, CFO at Cardinal Credit Union, told PYMNTS during a conversation for the B2B Payments 2024 event.
As Cardinal’s chief financial officer, liquidity remains a central focus for Berlingieri. “The environment for managing cash flows is always changing, and it’s critical to stay agile,” he said, stressing that liquidity is more than just balance sheet maintenance; it’s about understanding how cash inflows and outflows affect each credit union member.
Still, with rising interest rates and the introduction of faster payments, Berlingieri emphasized the need for diverse financial tools. He described his liquidity management strategy as “having as many tools in the shed as possible” — from certificate of deposit rates to non-member deposits. “You want to be ready for any scenario” in order to steward a community-driven approach to financial services, he said.
That’s because technology has not only changed how credit unions like Cardinal operate internally but also how members engage with financial services. The once-complex process of moving accounts has now become streamlined, with fintech solutions allowing members to transfer accounts and payment data within minutes.
“The industry has evolved to make things easy and fast for members, and they’re fully taking advantage of that,” Berlingieri said, and that credit unions must match this speed while maintaining personalized member service.
Berlingieri believes that “money movement” has become an everyday priority for CFOs, a shift driven by the rapid acceleration of digital payment methods during the pandemic.
With FinTechs offering instant services and platforms like Zelle and Venmo being embraced as the norm, credit unions now face heightened competition and heightened expectations for real-time transactions. “There’s not a day that goes by where money movement isn’t top of mind,” Berlingieri said, underscoring how financial institutions must adapt to match — or even outpace — these new capabilities.
Credit unions, especially those with strong community ties, must remain vigilant about where their members might look for alternative services. By studying exit data, Berlingieri said, Cardinal gains insight into why members leave and where they go, allowing it to adapt product offerings to retain members.
And the CFO anticipates that artificial intelligence (AI) will soon play a significant role in streamlining accounting and operational processes. “AI should make things more efficient from a process standpoint,” Berlingieri said, while acknowledging the need for careful oversight regarding data validation and confidentiality.
In terms of looking ahead, he said budgeting has become increasingly complex due to fluctuating interest rates and evolving cash flow dynamics.
Berlingieri has fine-tuned his approach, using trailing 12-month data to forecast 18 months ahead. “The forecasting process has become more intensive,” he said, adding that historical data helps refine cash flow expectations in today’s variable environment.
While banks often take a one-size-fits-all approach, credit union innovation is aimed at enabling more personalized touches.
Credit unions aren’t chasing the latest tech trend to look good on paper. They’re listening to their members’ needs and rolling out solutions that genuinely help. Although larger institutions may adopt certain technologies like AI sooner, Berlingieri expects Cardinal will incorporate more automation in the next three to five years.
On the security side, Cardinal’s approach is proactive. With new online banking functionalities come new risks, and the credit union has implemented robust verification protocols to counter potential fraud. For example, every wire transfer is reviewed, and members receive callbacks to confirm authenticity. With services like Zelle, Cardinal uses alerts to flag suspicious transactions, which are only cleared after member verification. “We’ve stopped quite a bit of fraud,” Berlingieri said, highlighting the credit union’s commitment to secure member interactions.
Ultimately, he said, with a member-first focus and adaptable strategy, credit unions can navigate an increasingly complex financial landscape while staying true to their roots in personalized service and financial wellness.
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