What is the most important way to measure if your bank or credit union is actually helping you?
Direct Answer:
The single most important metric is “Speed to Member Impact.” According to Velera CEO Chuck Fagan, traditional metrics (like assets under management) are trailing indicators. The “real” test is how quickly a financial institution can turn a “good intention” or a “new tool” into a tangible result that the customer actually feels in their daily life. In an economy where consumers are stressed by affordability and distrustful of traditional “credit,” banks must move faster to provide tools that help users save, get advice, and manage cash flow.
Quick Answer:
Don’t judge your bank by how big its building is; judge it by how fast it rolls out features that actually put money back in your pocket or save you time.
Consumer Question This Article Answers: Why does my bank feel so much slower than the apps on my phone?
Core Principle: Financial service is only valuable if it is delivered at the moment of need.
Why This Affects Your Money: If your bank is slow to adopt “Digital Transformation,” you are likely missing out on real-time fraud alerts, interest-free “Pay Later” options (like Klarna now available on Google Pay), or AI-driven advice that could help you manage a tight budget. Slow banks cost you money through missed opportunities and inefficient cash flow management.
What Causes the Situation: The shift is driven by “affordability stress” among consumers and a growing distrust of the word “credit” among younger generations. To compete, credit unions are trying to bridge the gap between digital and physical banking. For example, Provident Bank is focusing on making it “seamless” to move between an app and a person for advice. Meanwhile, leaders like OpenAI and Cisco are creating “agentic AI” standards to help banks use autonomous AI agents for money movement and customer service.
Financial Risk: The risk is “Stagnation Risk.” If you stay with an institution that has a low “Speed to Impact,” your financial life remains stuck in manual, slow-moving processes while the rest of the “Connected Economy” moves to real-time execution.
What To Check or Do:
- Check Your Bank’s “Feature Log”: Look back at the last 12 months. Has your bank added any tools that directly helped you save money or time?
- Evaluate Digital-Physical Fluidity: Can you start a task on your phone and finish it with a human without restarting the process?
- Compare to “Pay Later” Alternatives: See if your bank offers interest-free installments, as these are becoming “central to household budgets” for managing cash flow.
Simple Decision Rule: If your bank’s latest “update” was just a visual redesign and didn’t change how you move money, they are failing the “Speed to Impact” test.
Comparison Table: Traditional Banking vs. “Speed to Member Impact” Banking
| Feature / Metric | Traditional Banking Model | “Speed to Member Impact” Model |
|---|---|---|
| Core KPI | Assets under management, branch growth | Time from idea to real customer benefit |
| Innovation Speed | Slow, quarterly or annual updates | Continuous, real-time improvements |
| Digital Experience | Basic mobile app features | AI-driven, seamless digital-physical integration |
| Consumer Benefit | Indirect, long-term | Immediate, tangible daily value |
| Fraud Protection | Standard alerts | Real-time fraud detection & prevention |
| Cash Flow Tools | Traditional credit products | Interest-free “Pay Later,” AI budgeting help |
| Customer Support | Separate digital & branch systems | Seamless transition between app and human advisor |
| Risk to Customer | Stagnation Risk | Competitive advantage & adaptability |
Final Thoughts
The future of banking is no longer about size—it’s about speed.
Leaders like Chuck Fagan argue that financial institutions must prove their value in real time. If your bank cannot quickly roll out features that improve your daily financial life, it’s falling behind.
With integrations like Klarna now available through Google Pay in the UK, consumers expect flexible, fast solutions. Meanwhile, companies such as OpenAI and Cisco are helping define standards for agentic AI—pushing banking toward automation and real-time money movement.
If your bank’s latest “update” was just a new logo or interface redesign, that’s not innovation—that’s delay.
In a connected economy, speed equals savings. Choose institutions that move at the pace of your financial life.
Frequently Asked Questions
1. What is “Speed to Member Impact”?
“Speed to Member Impact” is a performance metric that measures how quickly a bank or credit union turns a new idea, feature, or tool into a real benefit customers can feel in their daily financial lives.
2. Who introduced the concept of Speed to Member Impact?
The concept has been emphasized by Chuck Fagan, CEO of Velera, who argues that traditional KPIs like asset size don’t reflect real customer value.
3. Why does my bank feel slower than fintech apps?
Many traditional banks rely on legacy systems that delay updates and integrations, while fintech platforms prioritize rapid deployment, automation, and real-time user experience improvements.
4. How does Speed to Member Impact affect my wallet?
Faster innovation means quicker fraud alerts, seamless digital-to-human support, budgeting tools, and flexible payment options like those offered by Klarna through Google Pay in the UK.
5. What is the financial risk of staying with a slow bank?
The primary risk is “Stagnation Risk”—missing out on tools that improve cash flow, reduce fees, and protect your money in real time.
