A Q&A with Seth Perlman, Global Head of Product at i2c
Credit unions have long differentiated themselves through trust, relationships and community presence. But as member expectations and technology continue to shift, many institutions are navigating how to modernize without losing what makes them unique.
The Credit Union Connection’s Sarah Snell Cooke sat down with Seth Perlman, Global Head of Product at i2c, to discuss the operational realities credit unions face, how they can take a more pragmatic approach to modernization, and what it will take to earn “top-of-wallet” status among younger members.
1. Credit unions have always led with trust and relationships. What operational pain points are holding them back from innovating faster?
“Many credit unions are still operating on legacy and fragmented payments systems that were never designed for real-time processing or rapid product iteration. Every time a new capability is introduced, it turns into a complex development effort. That slows down innovation and pulls attention away from improving the member experience.
Managing multiple vendors can create unnecessary complexity and may result in additional manual work to keep data in sync. Over time, this can slow execution, reduce flexibility, and add risk.“
2. Credit unions serve a defined community with deep local relationships. How does that position them to better serve members’ credit needs?
“Credit unions have a structural advantage that larger institutions cannot easily replicate. A credit union serves a smaller, more defined community, and knows it well. That local knowledge translates into stronger relationships, better understanding of members’ financial needs, and the ability to offer more relevant products.
This personal touch is a real advantage. Our Consumer Credit Economy study found that 42 percent of U.S. consumers believe they would be denied for a new credit card, but the actual denial rate is far lower. That perception can keep qualified borrowers from applying, but credit unions are uniquely positioned to have a real conversation about credit options and make the right choice for the member’s financial health. When that relationship is supported by the right technology and product flexibility, credit unions can play to their strengths. The goal is not to out-feature the big banks. It is to serve members better than anyone else can.”
3. For institutions that can’t afford a full system overhaul, what does a pragmatic modernization roadmap look like?
“Credit unions with lean teams and limited budgets are not in a position to take on a multi-year platform rebuild, and they should not have to. The more effective path is to identify which components of their legacy systems are limiting the member experience or creating the heaviest operational drag. The key is to make sure your new components integrates with the systems you are keeping.
From there, you can add capabilities as needed. Modernization can be incremental and targeted, not just a wholesale reinvention.”
4. Integration is often where innovation stalls. How should credit unions think about adding new capabilities without creating new complexity?
“The idea that data fragmentation is the primary issue is often overplayed. In most cases, core data already sits within existing systems, and modern platforms can pull from multiple sources without much difficulty.
The bigger barrier is the cost and disruption of making a change. Even when legacy providers are limiting flexibility, institutions often stay put because switching feels too risky or resource-intensive.
They should also look at opportunities to offload operational complexity. Functions like fraud risk management, dispute resolution, and customer care support can be handled through managed services, allowing lean teams to operate more efficiently and stay focused on member experience.”
5. What should credit unions prioritize to become “top-of-wallet” among younger consumers by the end of 2026?
“Younger members are not walking into branches, and they are not calling your contact center. Email marketing is not reaching them. Credit unions are competing against the likes of Square Cash, Chime, and an entire category of digital-native products built around this demographic’s habits.
That means digital is the primary channel, not a secondary one. Credit unions need to offer an app that is genuinely simple and engaging. Budgeting tools, P2P payment capabilities, and digital wallets are essential features. And on the credit side, it means flexible financing, and installment options that give members control over how they pay.
The credit unions that can consistently and reliably deliver on all of that, with minimal friction, are the ones that will earn top-of-wallet status. The ones that can’t will keep losing that position to fintechs that are focused on this segment of consumers.”
6. Where does i2c fit into all of this?
“Modernization comes down to having the right foundation and a partner that can support it. At i2c, we provide a next-generation, unified platform that delivers an end-to-end suite of issuer processing; fraud risk management; dispute and chargeback resolution; and digital solutions that integrates with a credit union’s existing technology ecosystem. This allows credit unions to expand their offerings and innovate more quickly for their members.
Our objective is straightforward: help credit unions modernize in a way that strengthens member relationships, protects their investments, and positions them to win share of wallet. Technology should enhance the member experience and reinforce trust at every step.”