In an increasingly digitized financial environment, credit unions face a tipping point: adapt to new technologies or risk being left behind. While banks and fintechs are making great strides in digital transformation, credit unions must accelerate their technological adoption to stay competitive and relevant.

Digital transformation is here… what about credit unions?

We live in an era where everything is immediate: open an account, apply for a loan, sign a contract. A click is all it takes. For the average user, this is no longer a luxury, but a basic expectation.

And while banks and fintechs are aggressively advancing in automation, artificial intelligence and frictionless digital experiences, the cooperative sector faces a very clear choice: digitize or disappear.

📈 The unstoppable growth of the fintech ecosystem in Latin America

According to the IV Fintech Report in Latin America and the Caribbean, prepared by the Inter-American Development Bank (IDB) and Finnovista, the number of fintech ventures in the region grew by more than 340% between 2017 and 2023, from 703 to 3,069 companies in 26 countries. Source.

Colombia is positioned as the country with the third largest number of fintechs, representing 13% of the regional total, surpassed only by Brazil and Mexico. This growth reflects a clear trend towards the digitalization of financial services, driven by the demand for more agile and accessible solutions.

This technological boom translates into services:

• Faster
• 100% digital
• With simplified processes and self-service

Meanwhile, 50% of cooperatives in Colombia still rely on manual processes to grant loans or manage their portfolio (approximate figure according to industry interviews).

🏦 The digital challenge of cooperatives

Despite their importance in financial inclusion, many cooperatives still operate with manual processes and limited technological structures. This puts them in a vulnerable position vis-à-vis more agile and digitized competitors.

The reasons are understandable:

• 📉 Fear of change: manual processes that “have always worked”.
• 💰 Limited budget: lack of prioritized investment in IT.
• 🧩 Technical complexity: fear of modifying their core or disorganizing the operation.
• 👥 Lack of digital talent: teams without specific training in technological transformation.

But while these barriers persist, the associate profile has already changed. Today they want to do everything from their cell phones, compare products online and get answers in minutes, not days.

In Colombia, for example, the cooperative sector has shown signs of growth, with assets reaching $35.67 trillion in 2024 and a 43% increase in surpluses thanks to greater operational efficiency. However, digital transformation remains a pending challenge for many of these entities. Source.

🚀 Benefits of digital transformation for cooperatives

Adopting financial technologies offers multiple advantages for cooperatives:

• Operational efficiency: process automation that reduces costs and response times.
• Improved member experience: More agile and personalized services.
• Greater reach: Possibility of reaching rural or underserved areas through digital channels.
• Competitiveness: Ability to offer products and services on par with banks and fintechs.

Tools such as cloud management platforms, facial recognition, digital payments and e-signatures are key to this transformation.

🔧 Where to start. Key recommendations

1. Map the actual flow: from request to disbursement or collection.
2. Identify critical points: bottlenecks, frequent errors, complaints.
3. Start with modular technology: such as digital forms, OCR or dashboards.
4. Train the team: in digital culture, basic tools and multichannel service.
5. Measure and adjust: with real indicators of efficiency, satisfaction and return.

👉 Are you ready to take the next step?

Discover how technology can be your best ally to grow. Learn more about solutions like Smart Road and how they can help you in your digital transformation process.

📩 Contact us and schedule a free demo:
👉 www.shareppyinternacional.com
📱 Text us on WhatsApp: +57 324 296 5208
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