A Turning Point in Digital Banking
At Central 1’s Momentum 2024 conference last week, industry leaders gathered to discuss the future of digital banking. Our Head of Technology, Baris Tuncertan, was on-site, connecting with participants and gaining insights into the challenges and aspirations shaping the industry. Just days prior, Central 1 had announced a major shift: they would be ceasing their digital banking services—a decision with far-reaching impacts on many clients.
Over the three day event, this news cast a somber but energized atmosphere across the event. Baris, who attended last year’s conference, noted a marked shift in tone, observing, “This year felt different—there was real value in walking through shared values and concerns.” For many credit union leaders, digital banking has become essential, the primary way they connect with members daily. In light of Central 1’s announcement, an urgency rippled through the crowd, underscoring the necessity of resilient, forward-thinking solutions for the road ahead.
In response to the gravity of the news, Central 1 adjusted the schedule to include an unplanned Q&A session, where Chief Experience Officer Julie Breuer and Chief Technology Officer Dave Thomas stepped up to address the room. They opened with candor and an invitation for dialogue. “We don’t have all the answers to your questions,” Breuer began, “but it’s essential for us to understand what you’re thinking about as we figure out a path forward together.” The room came alive with pressing questions: How would this decision affect member experiences? What would data security look like in this new landscape? And for credit unions that had relied on Central 1’s digital platform for years, how would they find solutions that met their unique needs?
Central 1’s Journey to Change
The decision to cease Central 1’s digital banking services was far from sudden—it was the outcome of a thorough evaluation process that spanned over a year. At one point, Forge—Central 1’s flagship digital banking platform—was nearly ubiquitous, with 96% of credit unions across Canada using it as their platform of choice. However, over time, that landscape shifted as credit unions sought out alternative digital solutions better suited to their evolving needs. Recognizing this trend, Central 1 took a proactive step: they formed a small advisory group comprising three of their largest credit union members to delve into the Forge experience and gather honest, comprehensive feedback. The insights were candid and, in some cases, stark, underscoring that Forge might no longer meet Central 1’s needs.
This pivotal feedback set in motion a 14-16 month strategic planning phase, during which Central 1’s leadership and board weighed the future of their role in digital banking. After months of analysis and deliberation, the turning point came just two weeks before Momentum 2024, when the board convened and made a final, significant decision: to decommission Forge and Member Direct, formally exiting the digital banking business.
Strategic Decisions and the Path Forward
During the Q&A session, Breuer and Thomas acknowledged the gravity of the concerns raised but clarified that answers wouldn’t be immediate. As Breuer explained, the transition would take time, and much of the specific guidance would depend on each credit union’s unique circumstances. The path forward, including new digital banking solutions, would vary widely based on individual needs, requiring careful consideration and detailed planning.
For many, pricing and transition timelines were top concerns. While Central 1’s leadership couldn’t provide concrete answers at the moment, they assured attendees that more information will be available in the coming weeks, once the details of the transition plan were finalized. Reducing complexity and cost are top of mind as Central 1 looks to explore alternative digital banking solutions suitable for each of its clients to consider migration.
This won’t be an easy transition, but as Breuer summed it up, it’s important for everyone “to take the time to reflect and understand what this means for you moving forward.” For credit union leaders, the road ahead will require patience and careful reflection, as they determine the best path for their organizations in a rapidly changing digital landscape.
A Collaborative Path Forward
The road ahead for credit unions is about more than just adopting the right technology—it’s about partnering with experts who can help navigate the complexities of an ever-evolving digital landscape. As our Head of Technology, Baris Tuncertan, experienced firsthand at Momentum 2024, we understand the urgency for credit unions to find solutions that not only meet current needs but also anticipate future demands. As the industry moves through this transition, finding a partner who understands the shifting demands of digital banking is critical.
At Aequilibrium, we believe a future-focused approach is essential. It’s in our DNA to craft innovative, trust-based solutions that empower credit unions to thrive in a digital-first world. Specializing in Digital & Product Strategy, Digital Banking, App and Web Development, and more, we work with our partners to drive meaningful change. If your credit union is ready to embrace the next stage of its digital evolution and enhance the member experience, we’re here to help!
