It’s safe to say that in CUs, disruption is now here. Innovations that were bleeding edge just a decade ago—such as robotic process automation, machine learning, artificial intelligence, and cloud computing—are joining the mainstream. Likewise, fintechs, bigtechs, and digital leaders that emerged during the past decade have already begun to form strategic banking partnerships and to carve out specialized niches. As transformation accelerates, open banking, instant payments, and other advances will create enormous value for fast-moving institutions while disintermediating those that move too slowly.
Our research examines the profound ways in which CUs’ risk and treasury functions will change over the coming years. Both functions face a broader mandate with a larger slate of risks to manage, a growing need for integrated steering to protect CUs’ interests, and an equally growing need to make the most strategic use of CUs’ balance sheet resources. Delivering on this mandate will require risk and treasury to operate faster and more incisively, backed by real- time data, predictive analytics, and end-to-end automation. Risk and treasury functions that commit to “going digital” in these ways will become not only more efficient operators but also more effective strategic partners in delivering value to CUs.
To prepare for economic and technical change is a challenge as digital savvy CUs will increasingly define how services are delivered.