By Roy Urrico
With the Trump administration’s pro-business posture and deregulation efforts, credit unions and regional banks have an opportunity to expand their role in the financial landscape and more effectively compete with larger institutions. That is the opinion of an industry expert at MeridianLink, which powers digital lending and account opening for financial institutions.
Wesley Zauner, vice president of product at Costa Mesa, Calif.-based MeridianLink, discussed with Finopotamus how credit unions and regional banks can take advantage of reduced compliance burdens, allowing them to expand credit access and modernize lending. Their strong local ties give them the agility to meet the unique needs of small businesses and individual borrowers.
Additionally, Zauner shared how these financial institutions can scale through mergers and acquisitions (M&A) and adopt new technologies to remain competitive.
Shaping The Regional Banking Landscape
A more pro-business environment encourages faster adoption of safe, innovative digital tools and more tailored financial products, ensuring that consumers benefit from cutting-edge solutions without unnecessary delays, expressed Zauner.
“With a balanced approach that prioritizes both innovation and thoughtful implementation, adopting new technology allows regional banks and credit unions to focus more on directly engaging with their customers and members and delivering personalized financial services and less time managing back-end processes and completing compliance paperwork,” said Zauner.
Zauner went on to describe how regional institutions can leverage regulatory changes to remain competitive with larger institutions in several key ways:
Expanding credit access: “Automating decisioning processes and simplifying lending workflows allow institutions to offer more accessible credit options, tailored to meet the unique needs of local communities.”
Scaling operations through mergers and acquisitions: “Consolidation efforts through M&A enable institutions to join forces, combining best practices and resources to extend their reach and deliver more comprehensive financial solutions at scale.”
Adopting digital technologies: “Streamlining regulations to encourage stronger competition in banking paves the way for faster digital transformation, enabling institutions to improve service delivery and enhance customer experiences.”
The Impact of Reducing Compliance Burdens on Lending and Modernization
“Fewer compliance burdens enable financial institutions to accelerate their lending processes by shifting decision-making directly to local institutions, which have a deeper understanding of the unique needs of their communities and are better equipped to address them effectively,” said Zauner.
This approach not only speeds up the approval process, but also improves the borrower experience, as well as lowering operational costs for the institution, explained Zauner. “With fewer regulatory hurdles, banks and credit unions can redirect resources toward modernization efforts — such as upgrading digital banking platforms and enhancing self-service capabilities — further improving customer satisfaction and operational efficiency.”
M&A Activity Helps Regional Banks and Credit Unions
M&A strategies are proving instrumental for credit unions and regional banks looking to strengthen their market position and improve operational efficiency, maintained Zauner.
“Mergers allow institutions to pool resources, expand their service area, and offer a wider array of financial products and services. This consolidation provides optimized back-office functions and increased investment in digital infrastructure, better positioning regional institutions to serve their communities’ financial needs while maintaining highly personalized service,” said Zauner.
Technology’s Role in Streamlining Operations and Capital Access
“Technology is revolutionizing how regional banks and credit unions operate and provide access to capital,” said Zauner. MeridianLink’s technology assists financial institutions in automating loan origination and account opening processes, enabling them to serve their communities more effectively, while maintaining a personalized approach, he explained.
MeridianLink’s cloud-based digital lending, account opening, background screening, and data verification software solutions leverages shared intelligence from a unified data platform, MeridianLink One.
“By investing in these technologies, institutions improve operational efficiency, reduce costs, and stay competitive with larger institutions,” said Zauner.