The changing landscape of credit unions

The credit union industry has been at a crossroads. While membership numbers have steadily increased over the past 60 years, credit unions themselves have been consolidating. The institutions that have survived and thrived are those that evolved alongside their members’ needs and behavioral changes. Today’s financial landscape demands innovation, adaptability, and a strategic approach to leadership that bridges the gaps between vision and execution.

The leadership gap: A barrier to progress

One of the biggest challenges facing credit unions (and all organizations) today is referred to as the “Leadership Gap.” This gap exists when there is a disconnect between a leader’s perception of their organization’s effectiveness and the actual reality on the ground. Leaders may believe their teams are embracing change, implementing strategies, engaging with members effectively, or leveraging digital channels optimally—only to discover that results are lagging behind expectations.

This gap manifests itself in several ways:

• A belief that new strategies are being implemented when, in reality, they remain theoretical.
• An assumption that all employees understand their credit union’s goals, when many are unclear on how their roles contribute to the bigger picture.
• An overestimation of the effectiveness of engagement strategies, whether in email marketing, social media engagement, community outreach, or outbound communication.
• Credit union leaders must take proactive steps to minimize this gap, ensuring their teams are not just hearing the vision but actively executing it in measurable ways.

Reassessing channels of access

For credit unions to thrive in 2025, they must evaluate their “channels of access”—the ways in which they engage with members and generate revenue. These channels fall into two categories:

1. Reactive channels: These include branch visits, inbound call centers, uniform email messaging, online banking, and mobile banking.
2. Proactive channels: These involve outbound calling, targeted email marketing, social media engagement, and community outreach.

Currently, the industry relies heavily on reactive channels, with approximately 70% of loan leads originating from them, while only 30% of loan leads come from proactive outreach. To achieve sustainable growth, credit unions must rebalance this approach.

Strengthening proactive engagement

Proactive engagement requires intentionality. It is not enough to simply have a marketing strategy and a team identified to execute the plan. Credit unions must take steps to ensure that proactive outreach efforts:

• Build trust before making contact and foster ongoing relationships once contact is made.
• Deliver personalized, relevant educational content focusing on financial literacy.
• Utilize segmentation tools to tailor messages and offerings to different member demographics.
• Maintain consistency as a program is developed and continuing beyond, fostering an ongoing relationship rather than a one-time transaction.
• Measure results using data analytics against clear and defined expectations, deliverables and accountabilities.

Closing the leadership gap

To bridge the gap between strategy and execution, credit unions must embrace a "Show Me, Tell Me" approach:

• Show me: Leaders should ask teams to systematically present tangible documentation of execution and include stories of success and challenges.
• Tell me: Communicate within the teams who get the work done on a daily basis and are closest to the realities on the ground. They know what is going on and will share when they feel safe communicating honest feedback to the executive team.

The future of credit unions

As digital banking continues to evolve, branch visits will continue to decline. All along, consumer expectations continue to shift. Your credit union must evolve in step with the changing environment. The institutions that succeed today and will be here to tell the story tomorrow are those that:

• Embrace technology without losing their human touch.
• Develop proactive engagement strategies that build trust with members.
• Invest in leadership training that ensures strategies are implemented effectively.
• Use data-driven decision-making to measure success and adjust accordingly.

By focusing on proactive engagement, innovation, and closing the leadership gap, credit unions can position themselves for sustainable organic growth in the years ahead.

Does your credit union have sufficient access to your members? Take this test to find out.

CAUTION! BE AWARE OF THE LEADERSHIP GAP – Ask your leadership team to take the same test and compare your results.

On a scale of 1-10 with 1 being ‘completely disagree’ and 10 being ‘completely agree’, answer the following questions:

1. We innovate from within, embracing needed change with speed. _____
2. Our 3rd party relationships are actually ‘strategic partnerships’ rather than transactions vendors. _____
3. We have a business development team that systematically visits all credit union SEGs while intentionally building and maintaining relationships with key contacts throughout. _____
4. We have a team that systematically and intentionally engages with the community by providing education and services while increasing brand awareness. _____
5. Our contact center is rewarded for and celebrates effectively educating members resulting in participation with appropriate products and services that enhance their relationship with the credit union. _____
6. Our online mobile banking generates interest in products and services by pointing members to educational content or referrals to MSRs and is effective in this regard.
7. Our social media activity includes real video and live streaming, in addition to animated content to build our brand while promoting authentic storytelling to create engagement. _____
8. Our branches have been renovated or repurposed to incorporate community spaces, technology, digital integration, in/on or around a smaller footprint. _____
9. Our email marketing has become personalized and segmented with a focus on education and financial wellness based on the lifecycle of the member. _____
10. Our outbound engagement program builds relationships by disseminating nurturing content and relevant education with the purpose of generating conversations on the phone with targeted groups of the membership that will result in additional loan and product participation. _____

TOTAL SCORE: __________

With the evolving landscape of financial services, credit unions must assess and elevate their reach and engagement with members. Whether through physical branches, digital avenues or over the phone, true value is measured by how effectively you connect with the communities you serve.

Beyond the numbers, you will explore the deeper questions every credit union should ask: How accessible are we to our members? What are the next steps to advancing that access, no matter where you currently stand?

How much ‘currency’ do you hold?

Original article available here.