Credit unions, building societies and mutual banks are being squeezed by the banking sector, which has established a substantial lead in the use of technology.While Commonwealth Bank is the only one of the Big Four to have completed its core systems revamp, the other majors are either rolling out new core platforms or building robust technical infrastructure capable of rapidly generating new products and customer services.Customer-owned organisations are finding it a challenge to match their pace.According to the Customer Owned Banking Association, there are 83 credit unions, 10 mutual banks and seven building societies operating in Australia, with collective assets of A$84.5 billion.The scale of the gap between the big banks and this sector is evidenced by the fact that the banks have combined assets of $3.7 trillion according to IBIS World.In its November mutuals report, KPMG noted that the last 12 months have proved a "testing" year for the sector, with operating profits dropping 1.3 per cent and membership also declining.KPMG noted that while technology offers the greatest opportunity for mutuals to improve their performance in the future it was something of a "two-edged sword" as investing in technology was necessary but no guarantee of increased business.Credit unions in Australia face similar technology challenges to the major banks. They need robust, secure information systems that can support rapid product development, deliver mobile services, and provide data insights for senior management. But, unlike the big banks, they don't have the deep pockets needed to invest in technology. As a result, some are running decades-old legacy systems on ageing computers which urgently need refreshing.Australia's largest credit union, CUA, completed a $60 million core systems overhaul in late 2013. While this investment pales when set against the billion-dollar technology budgets of the big banks, such technology overhauls do better position financial institutions both for growth and increased agility.In a recent report in the Australian Financial Review, CUA's chief executive, Chris Whitehead, acknowledged the scale of the commitment required, saying that while the big banks' billion-dollar technology budgets represented possibly a quarter's worth of their profits, CUA's investment amounted to about 18 months' worth of profitability.For smaller credit unions and mutuals the investment challenges can be even more substantial, and access to the technical skills required is more difficult. CUA chief information officer David Gee, said: "We are always trying to punch above our weight against some of the largest banks in the world. "When I talk to any of my peers in the mutual industry - and we do network regularly - it is clear that everyone, essentially, has a similar agenda," said Gee. This includes the need to overhaul data centres, replace core systems, ensure compliance and deliver digital and mobile solutions.   "This is no different to the big banks, it's just doing that with less resources," he said.The heart of CUA's new technology infrastructure is the BaNCS system from Tata Consultancy Services. CUA has been very open about the technical direction it has taken, and many of its peers have