Back

Global Customer-Owned Banking Survey Reveals Member Trust Trumps Speed to Market in 2026 Modernisation Strategies

Sandstone Technology

Mutual banks and credit unions around the world are navigating a critical strategic dilemma: how to modernise digital capabilities at speed without risking core stability or eroding member trust.

A comprehensive new whitepaper titled “Protecting the Core: How Mutual Banks and Credit Unions Can Achieve Speed to Market Without Sacrificing Member Loyalty” reveals that while 55% of global industry leaders prioritise delivering an elevated digital experience, 46% designate member trust as their ultimate non-negotiable. Crucially, only 14% of institutions prioritise speed to market over system stability, confirming that fast-tracked rollouts that threaten uptime remain unacceptable to cooperative lenders.

Unveiled following the World Credit Union Conference (WCUC) in Sydney—co-hosted by the World Council of Credit Unions (WOCCU) and Australia’s Customer Owned Banking Association (COBA)—the research synthesises data from over 400 industry executives across 30+ countries.

Legacy Systems and Capital Limits Drive Operational Friction

The findings highlight that internal tech debt, rather than external market uncertainty, serves as the primary bottleneck to rapid execution:

• Legacy Tech Architecture (37%): Monolithic core ledgers remain the top operational obstacle globally.

• Capital & Budget Constraints (31%): High cost projections for full-scale platform replacements restrict broad innovation.

• Regulatory Burden (16%) & Economic Volatility (16%): Expanding compliance mandates continue to absorb critical IT bandwidth.

 

Regional Divergence Across AU, NZ, and UK Markets

While shared cooperative values unite customer-owned institutions globally, market-specific data uncovers distinct regional approaches to digital investment:

Market	Top Strategic Priority	Primary Operational Friction	Top Non-Negotiable
Global Average	Elevated Digital Experience (55%)	Legacy Tech (37%)	Member Trust (46%)
Australia (AU)	Elevated Digital Experience (53%)	Legacy Tech (44%)	Member Trust (44%)
New Zealand (NZ)	Seamless Lending (70%)	Legacy Tech (50%)	System Stability (40%)
United Kingdom (UK)	Seamless Lending (75%)	Budget Constraints (50%)	Member Trust (88%)

• Australia: Confronts internal tech pressures acutely, with 44% citing legacy tech and 39% pointing to budget constraints, driving institutions to seek modular expansion.

• New Zealand: Focuses heavily on credit automation, with 70% prioritising seamless lending. NZ is also unique in prioritising system uptime (40%) above all else during processing upgrades.

• United Kingdom: Exhibits near-zero risk tolerance. An overwhelming 88% select member trust as their top priority, while 0% prioritise speed to market over safety—viewing modernisation primarily as an exercise in lending efficiency rather than UI design.

Resolving the "Rip-and-Replace" Dilemma

To bridge the gap between high member expectations and legacy constraints, the whitepaper advocates for an intermediate path: Modular Orchestration Layers.

By deploying cloud-native orchestration layers over existing core ledgers via APIs, mutual banks and credit unions can launch high-value capabilities such as automated origination and digital onboarding in months rather than years. This approach isolates legacy cores, preserves uptime, and optimises capital deployment directly into high-impact member touchpoints.

Access the Report

The full whitepaper, including granular survey data and architecture playbooks, is available for download at https://www.sandstonetechnology.com/wcuc-survey-findings-2026. Financial institutions can also request a complimentary digital transformation assessment to evaluate their technical readiness and identify friction-reduction opportunities.

About us:

For over three decades, Sandstone Technology has partnered with credit unions, building societies, and mutual banks globally to deliver modern digital journeys while preserving operational integrity. Integrating seamlessly with over 60 core banking and third-party systems, Sandstone’s modular ecosystem enables rapid feature deployment, optimised lending, and protected member trust from day one.

Contact details:

Sandstone Technology Media Relations

Email: [email protected]

Website: www.sandstonetechnology.com