The fallacy of innovation theatre in community banking is a hinderance not a help.
In today’s financial landscape new gets a disproportionate amount of attention - "how AI will transform Community Banking!". This puts Credit Unions and Community Banks under a lot of pressure to innovate rapidly to compete with Big Brand Banks and Fintech companies.
However, there's a common reaction to the need to innovate that is a lot easier and thats being seen to innovate whilst not actually doing anything to change the actual business otherwise known as "Innovation Theatre". Large companies are past masters at this - having a "Lab" has been the classic go to. Its not cheap but its a lot of fun. There are other well trodden ways to do this - having a hackathon, going to "innovation" events especially if its only tangental to the business (Money2020 ahem), changing a title but not the role to "Head of Innovation", making a few Fintech investments, the list goes on.
True innovation, especially for community-focused financial institutions, should be about making meaningful changes to the way the business operates in ways that enhances member and customer value, not just adopting new tech.
Credit Unions and Community Banks have a unique advantage: deep-rooted relationships and trust within their communities. The real innovation lies in leveraging these strengths through thoughtful, member-centric solutions. Instead of overwhelming members with flashy, complex technology, focus on tools that genuinely improve their financial well-being.
Consider digital platforms that simplify financial management, investment tools tailored to local needs, or personalized financial education programs. These innovations are not about keeping up with the big banks; they are about deepening your commitment to the community.
The fallacy of innovation is believing it requires abandoning the principles that made you trusted in the first place. Real innovation respects your mission, enhances member experience, and stays true to the values that differentiate Credit Unions and Community Banks.
Stay true to your roots, and let innovation serve your community, not the other way around.
Unifimoney is a turnkey digital wealth management platform enabling Community Financial Institutions to compete with Fintechs and Big Brand Banks at high speed, low cost and without the need for technical integration. Owned by Palm Ventures a large family office backed investment firm. If you would like to speak to us please reach out or visit the website.
