Credit unions have long been trusted financial institutions, known for their member-focused approach and community-oriented services. However, in the digital age, many credit unions struggle to compete with fintech platforms that offer modern, user-friendly investment services. This case study explores how CommunityFirst Credit Union transformed their investment offerings using Bluum Finance’s comprehensive investing infrastructure platform.
The Challenge
CommunityFirst Credit Union, serving over 50,000 members across three states, faced significant challenges in their investment services:
Outdated Technology: Their existing investment platform was built in the early 2000s, offering limited functionality and poor user experience compared to modern fintech apps.
Limited Investment Options: Members could only access basic mutual funds and CDs, missing out on individual stocks, ETFs, and international markets that younger members demanded.
High Operational Costs: Maintaining their legacy investment infrastructure required significant IT resources and compliance overhead.
Member Expectations: Younger members expected the same seamless, mobile-first experience they got from apps like Robinhood or Acorns.
Competitive Pressure: Fintech platforms were attracting credit union members with their modern interfaces and broader investment options.
The Solution: Modern Investing Infrastructure
CommunityFirst partnered with Bluum Finance to implement a comprehensive investing infrastructure solution that included:
Brokerage-as-a-Service: Full brokerage capabilities delivered via API, allowing CommunityFirst to offer individual stocks, bonds, ETFs, and international securities.
AI Advisory Services: Personalized investment recommendations and portfolio management powered by artificial intelligence.
Mobile-First Platform: Modern, responsive web and mobile interfaces that matched member expectations.
Compliance Framework: SEC-licensed infrastructure that handled all regulatory requirements and reporting.
Multi-Asset Support: Access to stocks, bonds, crypto, commodities, and alternative investments.
Implementation Process
The implementation followed a structured approach:
Phase 1 (Weeks 1-2): API integration and backend setup Phase 2 (Weeks 3-4): Frontend development and user interface design Phase 3 (Weeks 5-6): Testing, compliance verification, and staff training Phase 4 (Week 7): Soft launch with select members Phase 8 (Week 8): Full rollout to all members
Results and Impact
Within six months of implementation, CommunityFirst achieved remarkable results:
Member Engagement:
- 300% increase in investment account openings
- 85% of new investment accounts opened by members under 35
- Average account balance increased by 45%
Revenue Growth:
- $1.8M in new revenue from investment services
- 40% increase in total assets under management
- 25% improvement in member retention rates
Operational Efficiency:
- 60% reduction in investment-related support tickets
- 50% decrease in compliance and reporting time
- Zero regulatory issues or compliance violations
Key Success Factors
Member-Centric Design: The new platform was designed specifically for CommunityFirst’s member demographics, balancing simplicity for older members with advanced features for younger, tech-savvy members.
Seamless Integration: Bluum Finance’s API-first approach allowed CommunityFirst to integrate investment services directly into their existing online banking platform, creating a unified member experience.
Educational Support: Comprehensive financial education resources helped members understand new investment options and make informed decisions.
Personalized Service: AI-powered advisory services provided personalized recommendations while maintaining the personal touch that credit unions are known for.
Regulatory Compliance: Bluum Finance’s SEC license and compliance framework eliminated regulatory risks and reduced operational overhead.
Lessons Learned
- Modernization is Essential: Traditional financial institutions must modernize their technology to remain competitive
- Member Expectations Matter: Younger members expect modern, mobile-first experiences
- Partnership Strategy: Working with specialized infrastructure providers accelerates digital transformation
- Education is Key: Providing financial education alongside new services increases adoption and satisfaction
- Compliance Simplification: Leveraging licensed partners reduces regulatory complexity and risk
The Future of Credit Union Investing
The success of CommunityFirst’s transformation highlights broader trends in the credit union industry:
Digital Transformation: Credit unions are increasingly partnering with fintech infrastructure providers to modernize their services.
Member Demographics: As younger members join credit unions, demand for modern investment services will continue to grow.
Competitive Positioning: Modern investment platforms help credit unions compete with digital-first financial services.
Revenue Diversification: Investment services provide new revenue streams beyond traditional lending and deposit products.
At Bluum Finance, we understand the unique challenges credit unions face in modernizing their investment services. Our comprehensive investing infrastructure platform provides the technology, compliance, and support needed to transform traditional financial institutions into modern, competitive investment providers.
Ready to modernize your credit union’s investment services? Contact us today to learn how Bluum Finance can help you bring your institution into the new age of retail investing.