Credit unions don’t approach fintech the way venture firms or banks do. Innovation, investment, partnerships, and new ventures all must connect back to member value, operational impact, and cooperative purpose.

Throughout the past several weeks, CreditUnions.com has explored how institutions across the country think about future bets — from building solutions internally to investing through CUSOs, venture funds, and holding companies. The approaches vary, but a common theme runs through each conversation: balancing today’s needs with tomorrow’s opportunities.

This week, we’re wrapping up the series with perspectives from three more credit unions and a look at what money movement trends say about where credit unions will need to adapt to stay competitive.

• • Suncoast Credit Union shares how it balances mission, market opportunity, and investment discipline when evaluating fintech partnerships.
  • FORUM Credit Union explains why it invests heavily in internal capabilities while selectively partnering with fintechs that advance member service goals.
  • Mission Fed discusses how its fintech investment strategy has evolved, from early direct investments to leveraging industry partnerships and broader market visibility.

Want more? Be sure to catch up on the entire Future Bets series on CreditUnions.com.

Finally, our latest Graph Of The Week examines the rapid growth projected for digital assets and what emerging payment, lending, and settlement technologies could mean for credit unions’ future strategies.

Now it’s your turn. What’s driving your fintech strategy? How do you weigh immediate needs against long-term opportunity? Do you leverage partnerships, or are you building in-house bench strength? Drop us a line, and we might feature your story on CreditUnions.com.

The post Future Bets For Fintech appeared first on CreditUnions.com.

NET NEW MEMBERS AND MEMBERSHIP GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

After peaking in 2022 and 2023, with more than 5 million new members annually and growth rates exceeding 4%, net new members fell to 2.7 million, a steep decline from the post-COVID boom years when growth exceeded 4% and annual additions topped 5 million.

Several factors contribute to this slowdown. Higher interest rates, liquidity pressures, broader economic deceleration, and consumer expectations for digital-first experiences and personalized engagement have all strained operations. What’s more, indirect lending — once a reliable growth engine — has become a strategic liability. In mid-2023, indirect loans made up nearly 25% of all credit union lending, skewing focus away from core members. Many institutions are now recalibrating, pulling back from indirect channels to re-engage with their foundational membership.

The numbers tell a clear story: member growth at credit unions is no longer on autopilot. Unfortunately, data alone doesn’t chart a path forward. It does, however, underscore a critical inflection point that invites a deliberate rethinking of strategy. With that in mind, experts from Callahan & Associates discuss what credit unions can do — not just what’s happening now — to reignite growth, deepen engagement, and reinforce relevancy amid shifting member preferences.

TAKE 1: Purpose Is The New Growth Strategy

Growth is essential to long-term sustainability. Focus is essential to growth. But what should credit unions focus on? Life today is noisy and fast-paced. Consumers are bombarded with information and options. For financial cooperatives to rise above the noise and stand out — both critical for growth —they must return to their roots: their why, their purpose.

Purpose goes beyond products and services. It reflects a credit union’s commitment to improving members’ lives in meaningful and lasting ways. When a credit union clearly defines and communicates its purpose, it can build trust, loyalty, and emotional connection with current and potential members. Purpose becomes the springboard for growth.

Embedding purpose into culture and operations takes intentionality and patience. But when done well, it motivates and empowers employees to engage deeply — with one another and with members. Purpose-driven employees lean in. They show up. These authentic interactions create a flywheel effect, transforming members from passive recipients of services into active catalysts for growth.

When people feel seen, heard, and supported through shared values, they’re more likely to invite others to experience the same. Purpose turns members into advocates. It’s not just a branding tool — it’s a strategic asset that fuels sustainable, mission-aligned growth.

Katy Slater is a senior vice president at Callahan & Associates. When she’s not leading the firm’s initiatives to promote a positive culture and live out its value proposition, Katy is pushing the movement’s leaders to think more deeply about what it means to be a cooperative in today’s financial services industry. Learn more about Callahan’s consultants and its ground-breaking programs on Callahan.com.

TAKE 2: When Members Feel Cared For, Growth Follows

Is the dramatic drop in membership growth a cause for panic or an opportunity to ask, “Should we be counting new members as if they’re all the same?”

Data suggests at least a quarter of net new members in recent years are one-hit wonders sourced through indirect channels. They produce income to better serve core members, but they also confirm that all members are not the same.

As financial cooperatives, credit unions exist to make their members’ lives better through the delivery of financial products and services.  That’s the goal; growth of any sort is a lagging indicator that they are delivering on it. Except, delivering wellbeing is tough when your primary tools are indistinguishable commodities. Caring about members helps, but the hard truth is, caring doesn’t matter unless members feel cared for.

When members strongly agree their credit union looks out for their financial wellbeing, they become more loyal, use more products and services, and don’t cross-shop when they need something. Decades of Gallup research supports this, and it’s validated every day by research Callahan and Gallup conduct through the credit union consortium program we lead.

Making people feel cared for can power credit unions into the future, improving member financial wellbeing and credit union financial performance at the same time. If credit unions take this drop in membership growth as a wake-up call, then growth of all kinds will take care of itself.

Chris Howard is a senior vice president at Callahan & Associates. Chris works with industry-leading credit unions on purpose, financial health and wellbeing, data analytics, fintechs, and stakeholder impact. You can also find him moderating Callahan Executive Roundtables or consulting with any number of credit unions on topics ranging from strategy and governance to member engagement and ways to measure performance. Learn more about Callahan’s consultants and its ground-breaking programs on Callahan.com.

The post 2 Hot Takes On Member Growth appeared first on CreditUnions.com.

Members want meaningful engagement. They want to connect with front-line employees. They want to know their financial institutions care. That shift is driving credit unions to double down on bold new strategies, from immersive training programs to bilingual banking and branch redesigns.

Of course, good intentions don’t move the needle. The following stories show how credit unions are turning insights into smarter, smoother member experiences.

Better MX Starts With Better Front-Line Training …

Cathy Graham has spent her entire working life in credit unions but never worked in a credit union branch until a three-week immersion provided “one of the best experiences of my career.”

Graham, who is executive vice president at Desert Financial Credit Union ($9.1B, Phoenix, AZ), spent two weeks in orientation and a week working in the branch. The singular focus of the experience, she says, was whether she as a “new employee” would feel confident in the branch — not necessarily proficient, but comfortable and ready. After all, comfortable, well-equipped employees build confidence with members.

“Spoiler alert: Nope, I didn’t feel ready,” she says. “But there were a couple of simple changes that would’ve made me feel ready.”

Read more in “Stepping Into The Branch And Out Of The Comfort Zone.”

… But MX Is More Than Just The Front Line

A new program from First Financial of Maryland Federal Credit Union ($1.3B, Sparks, MD) aims to bridge the gap between subject matter expertise and credit union leadership by marrying front-line member experience knowledge with leadership training in a way that prevents silos.

To inspire good experiences for the staff and members and to develop a singular mindset around member experience, the credit union has created a cohort of member experience leaders that includes branch managers, contact center supervisors, digital products managers, back-office leaders, and more.

If the program is successful, participants will gain a deeper appreciation of the work their colleagues do and a better understanding how each can leverage the others’ expertise for success, says Arturo Leon, assistant vice president and member experience officer at First Financial of Maryland.

Read more in “Better Member Experience? There’s A Class For That.”

Listening To Members Starts With Language

WECU ($3.1B, Bellingham, WA) is using language training to better engage with Spanish-speaking consumers as the credit union expands its reach. The training offers two tracks — basic and advanced, depending on the employee’s fluency — and pairs staffers with Spanish instructors and tutors from Western Washington University for four 90-minute sessions across four weeks.

“Our primary goal was to support our staff who wanted to acquire the Spanish skills needed to better support our Spanish-speaking members, especially as our Spanish-speaking membership grows,” says Cindy Klein, WECU’s chief human resources officer.

Instruction is available to member-facing retail staff, helping WECU increase its efforts toward inclusion and preparing the credit union for broader demographic changes taking place nationwide.

Read more in “¿Habla Finance? At WECU, Employees Are Learning.”

What’s Driving Member Engagement In 2026? Members stay when they feel seen, cared for, and confident that their credit union is invested in their financial wellbeing. That’s not achieved through service or rates — its earned through emotional connection. By creating a strategy around mission-aligned, data informed actions, credit unions are already shifting member behaviors to improve members’ financial wellbeing and underpin the credit union’s sustainable growth. Learn more today.

The post 3 Ways To Build A Better Member Experience appeared first on CreditUnions.com.

Uncertainty around tariffs, taxation, technology, and more have leaders grappling with a wide range of “what ifs” and investing more time in scenario planning — not just to prepare for disruption but to build organizational agility.

UNCERTAINTY IS ON THE RISE
FOR 142 COUNTRIES | DATA AS OF 06.30.25
SOURCE: World Uncertainty Index

Based on the CreditUnions.com article “Build Resilience, Not Road Maps,” by Jay Johnson, chief collaboration officer at Callahan & Associates, the following quiz helps leaders assess how well their credit union is embracing adaptability and building resiliency for years to come.

1. Are you prioritizing flexibility over fixed planning?
   Do you treat your strategic plan as a living document that evolves in response to change? Are you ready to shift tactics when emerging risks appear?
2. Are employees empowered to act in the face of change?
   Do your teams understand how their work supports the strategy? Do they feel empowered to make decisions during uncertainty? Do they feel responsible for adapting systems and processes when unexpected situations arise?
3. Are you helping members build resilience, too?
   Do you support members in building their own resilience (e.g., financial education, crisis tools), not just selling products? Does your strategic plan include specific efforts to improve member financial wellbeing, especially for vulnerable populations?
4. Is your technology integrated to enhance the member journey?
   Are your digital tools — from core systems to chatbots — working together to create a seamless, human-centered experience? Technology shouldn’t be flashy for its own sake; it has an important role to play in unifying touchpoints, anticipating member needs, and delivering value in real time.
5. Are you building solutions with your community?
   Do you engage local leaders and organizations to understand shared challenges? Is your credit union positioned as a collaborator in creating solutions that improve financial health and long-term community prosperity?
6. Are you telling the story of your credit union?
   Do you consistently communicate your strategic goals and progress toward them through clear, human stories your staff and members can relate to? Strategy without storytelling is invisible. Sharing your “why” builds understanding, alignment, and momentum across the organization.

Having a plan is table stakes for 2026. A truly resilient credit union has the people, mindset, and processes to adapt it.

Is Your Strategic Plan Built To Bend, Not Break? Uncertainty is rising — and long-term road maps alone won’t cut it. Strategic planning is now as much about learning to adapt as planning for the future. That kind of agility requires time and resources all year long, not just in the fall. Let Callahan & Associates help you explore how resilient organizations empower teams, evolve their strategies, and support members through change. Start a conversation today.

The post Is Your Credit Union Resilient Enough For 2026 And Beyond? appeared first on CreditUnions.com.

From navigating CEO transitions to reshaping governance, from preparing for the long game to letting go of legacy priorities, the following leadership lessons culled from CreditUnions.com speak to real challenges credit union decision-makers face today. Each one reflects a specific moment or mindset emerging from real-world experience. Taken together, they offer inspiration to help leaders stay focused, forward-thinking, and grounded in the values that make credit unions an essential player in financial services.

1. Lead Change From The Inside Out

Sustainable transformation starts by engaging people and empowering employees to lead change, not just respond to it. Internal buy-in is essential for external success, that’s why Affinity Federal Credit Union ($4.2B, Basking Ridge, NJ) built internal trust and operational alignment before implementing external change. Learn more in “Affinity FCU Manages Change From The Inside Out.”

READ MORE

2. Let Go To Move Forward

Leaders must recognize when to release outdated priorities and trust their teams with new directions. Leading with purpose requires leaders to carefully consider what to stop doing even as the excitement of new initiatives call. Stepping away from legacy strategies freed up space for University Federal Credit  Union ($4.1B, Austin, TX) to re-commit to purpose and sharpen its edge in consumer banking. Read more in “Purpose, Priorities, And The Power Of Letting Go.”

READ MORE

3. Invest In Leadership Transitions

Successful leadership transitions require humility, active listening, and clarity of purpose. New CEOs should lead with curiosity before making sweeping changes. Despite the fact he started out young in the credit union movement, Jeff Carpenter embraced storytelling, relationships, and organizational listening in his first year as CEO of WEOKIE Federal Credit Union ($1.4B, Oklahoma City, OK). Read more in “CEO Onboarding: Jeff Carpenter, WEOKIE FCU.” 

READ MORE

4. Prepare For The Long Game

Future-ready leadership means focusing beyond quarterly performance, and today’s leaders are making bold, strategic investments — even if the benefits aren’t guaranteed and won’t be visible until the next decade. How will the credit union stand out? What strategies will meet members’ needs? Who has the skillsets to make it all happen? Leaders are asking these questions today to ensure long-term strength and service tomorrow. Read more in “Strategy Today For Success In 2030.”

READ MORE

Is Your Leadership Team Moving In The Same Direction?  Accelerate innovation and navigate change with Callahan’s team-based learning programs. In collaboration with Harvard Business School Online, these exclusive opportunities help executive teams grow and adapt together. Let’s discuss which program suits your team’s goals. Contact Callahan today.

5. Redefine Resilience For A Complex World

Resilient leaders don’t just plan for change — they create adaptable, values-driven systems that thrive under pressure. True resilience includes culture, flexibility, employee engagement, and member alignment. As credit union leaders head into 2026 strategic planning, many are applying lessons from the pandemic — How quickly did we adapt? What systems or mindsets helped us pivot? — to today’s looming “what ifs,” including tariffs, taxation, technology, and more. Read more in “5 Strategic Planning Priorities For 2026 And Beyond.”

READ MORE

6. Stay Culturally Curious And Externally Informed

Great leaders pay attention beyond the credit union space. Cultural literacy and storytelling savvy help leaders resonate with both employees and members. Taylor Swift’s success is rooted in reinvention, authenticity, and connection, and although checking accounts aren’t love songs, credit unions that want to live their brand, build authentic relationships, and connect with members can take a page from Taylor Swift’s playbook. Read more in “What Can Credit Unions Learn From Taylor Swift?”

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7. Set Structure For Accountability, Not Control

Leadership maturity means building systems that outlast individuals. Healthy governance requires regular renewal of ideas, leaders, and processes. At Everwise Credit Union ($5.4B, South Bend, IN), implementing board term limits brought fresh perspectives and strengthened governance.

“Term limits require a board to have more structure, intention, and discipline,” says Jason Osterhage, CEO of Everwise. “That changes how directors engage with one another, with the CEO, and with the organization as a whole.” Read more in “Board Term Limits Are Reshaping Everwise Credit Union.”

READ MORE

Sustainable success starts with intentional leadership. Whether that means letting go of old priorities, onboarding with empathy, finding best practices from outside the industry, or restructuring for the future, great leaders are learning to focus less on control and more on trust, alignment, and adaptability. By applying these takeaways, credit union leaders can step beyond mere management to instead shape their organizations into credit unions that are ready to meet the future.

The post 7 Lessons In Leadership Straight From Today’s Credit Unions appeared first on CreditUnions.com.

In response, credit unions are sharpening their mortgage strategies with a mix of data, digital tools, and targeted outreach. From optimizing repricing programs to reaching first-time buyers in high-cost markets, these five stories highlight how credit unions are making smart moves in today’s housing environment — innovating with purpose and executing with precision.

Repricing With Precision

Repricing can be a double-edged sword, but for Wings Financial Credit Union ($9.4B, Apple Valley, MN), it’s a strategic lever. The Minnesota-based cooperative adds some pizazz to its repricing program with competitive rates and other perks but can easily tweak its approach to target different member segments, adapt to evolving needs, and maintain a balance between competitiveness and profitability.

Best of all, the program has not only drawn in borrowers but also increased overall member satisfaction.

“Some stated if they had not received this offer, they would not be purchasing a new home,” says Lia Patino, vice president of mortgage lending at Wings. “That was what we were hoping for — an offer that positively impacts our members’ lives while also benefiting the organization.”

Read more.

Or watch this webinar clip to hear more about this program straight from Patino herself.

Millennials Take On Mortgages

Millennials are moving into the housing market, and credit unions are ready to say, “welcome home.”

At Liberty Federal Credit Union ($4.2B, Evansville, IN) and Veridian Credit Union ($8.0B, Waterloo, IA), borrowers between the ages of 25 and 34 made up roughly one quarter of all mortgages originated in 2023 — approximately 1,000 and 1,500 loans each for that age bracket, respectively.

Jeff White, senior vice president of mortgage lending for Liberty FCU attributes his credit union’s success to having the right people, products, and delivery channels.

“Our overall membership does skew younger,” he says. “At 46, our average member age is below that of the average U.S. credit union. We attribute some of this to our products and services on the retail side.”

Kara VanWert, chief lending officer for Veridian Credit Union, also notes the importance of having the right product and adds the right partnerships to the mix.

“Veridian’s mission is to partner with our members to create successful financial futures,” she says. “We partner with several organizations working toward a similar purpose. For example, we partner with Iowa Finance Authority (IFA), who offers a FirstHome program that only requires 3% down. That, paired with our option for 100% financing, can help make home ownership more attainable and affordable.”

Learn more about how Liberty and Veridian are meeting younger buyers where they are, from digital-first experiences to flexible products

Read more.

Geofencing, Upgraded

Northern Credit Union ($634.2M, Watertown, NY) uses geofencing to engage homebuyers at the moment of intent — whether they’re at an open house or scrolling Zillow.

Geofencing uses GPS or RFID technology to create a virtual boundary that triggers a response when a mobile device enters or leaves the perimeter. It allows marketers to reach an intended geographic audience with the right messaging at the right time to increase loyalty and engagement. Today’s higher rates, soaring prices, and low stock have nudged Northern to revamp its geofencing strategy with new locations (in addition to its own locations, Northern also has geofenced many of its competitors’ branches), enhanced outreach (Northern uses push notification to promote home loan options and education), and stronger real estate agent partnerships (push notifications also inform members of open houses).

With smarter targeting and real-time follow-up, Northern is marrying digital marketing with member service.
Read more.

Affordable Homes, Creative Paths

Credit unions across the country are tapping into state programs and employer partnerships to help members find affordable housing. These efforts go beyond lending to serve long-term financial wellness and community stability.

In Vermont, Heritage Family Credit Union ($772.9M, Rutland, VT) has teamed up with the City of Rutland and the Vermont Treasurer’s Office to increase affordable housing in the community. The cooperative kicked off its Roofs Over Rutland initiative in October 2024 with an $8 million investment the state made available to the credit union at the low rate of 1%. In turn, Heritage Family is lending that money back out via programs that range from construction and renovation loans to HELOCs and business lines of credit.

“We’ve had pretty exciting results with nearly $6 million in requests thus far,” Chris Gomez, CEO of Heritage Family, told CreditUnions.com earlier this year. “We’re optimistic in another month or so we’ll have our first ribbon cutting where we’re taking an offline house online.”

Read more.

A Masterclass In Mortgage Marketing Conversion

What makes a mortgage page effective? Clear calls to action, tailored messaging, and mobile-first design. This visual showcase of high-performing credit union mortgage landing pages shows how three credit unions are turning clicks into closings with well-crafted digital journeys, proving great design and great results go hand in hand.

Read more.

These articles aren’t just from the archives, they’re from the front lines of innovation.

In a lending environment that demands both agility and empathy, these stories show that credit union mortgage success isn’t about housing and rates — it’s all about people and strategy. Whether it’s refining pricing models, refreshing marketing, embracing new tech, rethinking how to connect with younger members, or leading with member impact, credit unions are proving there’s more than one doorway to meaningful mortgage growth.

So if you missed them the first time — or just need a fresh dose of inspiration — now’s the perfect time to dive in.

? Have a favorite credit union mortgage article of your own? Share it with us during Mortgage Theme Week using #CUMortgageWeek.

The post 5 Mortgage Must-Reads That Still Move The Market appeared first on CreditUnions.com.

The checklist below outlines key steps to integrate AI across different areas of the credit union, ensuring a thoughtful, secure, and effective approach that benefits the credit union, its employees, and its members alike. The links within the checklist direct to articles on CreditUnions.com that highlight a credit union example or perspective.

WRITER’S NOTE: It probably does not come as a surprise that I used generative AI to construct this checklist. Using ChatGPT, I entered the prompt: “Please create a checklist for AI success at a credit union, incorporating different departments that might use it.”

I did not use AI to take the easy way out; rather, I wanted to provide a real-world example to jump-start our readers’ thinking and creativity. What do you think of this checklist? Do you disagree with any of the steps? Are there any oversights? What prompt would you use to tailor a checklist for your credit union? I’d love to hear your feedback.

Are You Ready To Unleash AI? Callahan Roundtables offer C-suite executives the chance to craft strategies, tackle challenges, and explore industry hot topics with like-minded leaders. Looking to level up your AI strategy? Callahan has a roundtable for you. Learn how to take your seat at the table.

The post An AI Success Checklist For Credit Unions appeared first on CreditUnions.com.

A Lifeline For Community Members In Crisis

Credit unions have long prioritized people over profits, and Hello Credit Union ($164.9M, Panama City, FL) exemplifies this commitment through a campaign that refers members in distress to a local hotline for emergency social assistance, including for housing, food, mental health, and more.

“This isn’t just something you see on social media or the news,” says CEO Mike Akers. “These are people in your community. These are your neighbors. There are people in your community who are struggling.”

But the credit union doesn’t only refer members, it also offers financial support for others in the network, demonstrating the human touch that sets credit unions apart.

Read more.

Affordable Homeownership Via Creative Funding

Affordable housing remains a critical issue nationwide, and credit unions are stepping in to help build inventory. Heritage Family Federal Credit Union ($773.4M, Rutland, VT) leverages state funding to expand homeownership opportunities.

“We are not-for-profit with a beautiful tax exempt status that we care for and want to sustain,” CEO Chris Gomez says. “The way to do that is to do things that are better for the community and not necessarily for the bottom line.”

Roofs Over Rutland underscores how credit unions serve as vital community partners in addressing systemic financial challenges.

Read more.

Engaged Volunteers. Stronger Leaders.

Strong, engaged volunteers are essential to community prosperity. They’re also a vial part of the cooperative principals that guide credit unions.

A structured approach to volunteerism and leadership development enhances governance and strengthens community engagement at 3Rivers Federal Credit Union ($2.5B, Fort Wayne, IN), where “Concern For Community” plays a major role in recruiting and retaining enthusiastic employees dedicated to the mission of people helping people.

“We want people who have shown the commitment to volunteering and being out there in the community,” says Heather Bontempo, community engagement manager at 3Rivers.

Read more.

Microbranches Bring Financial Services To Underserved Communities

Many rural and underserved areas lack access to traditional banking services, but some credit unions are closing this gap through innovative microbranches.

Small-scale, tech-enabled branches at Tongass Federal Credit Union ($224.7M, Ketchikan, AK) serve far-flung communities with a cost-effective model that prioritizes accessibility. This approach ensures financial services remain within reach for members who need them the most.

“These people live on islands,” CEO Helen Mickel says. “They live somewhere where you have to fly somewhere else to do something with your money. Having the site open was really helpful to the community.”

Read more.

The Credit Union Difference

When it comes to fostering local prosperity, credit unions offer an approach rooted in community service, financial inclusion, and cooperative values.

Through compelling initiatives like these, credit unions continue to lead the charge in building vibrant communities, proving that financial institutions can, and should, prioritize the wellbeing of their members over profits. That’s credit union impact in action.

The post 4 Ways To Build A Vibrant Community appeared first on CreditUnions.com.

Top-Level Takeaways

• Credit unions experienced increased share growth in early 2024, particularly through higher-rate CDs, which helped them reduce borrowing despite rising deposit costs.
• Langley FCU shifted its focus from overall deposit growth to helping more members achieve modest savings.
• It introduced a high-yield savings account and is using behavioral economics and digital nudges to encourage systematic saving among members.

In an era where financial stability often feels as fleeting as a trending hashtag, Americans are finding refuge in an increasingly popular place: credit unions. But while many financial cooperatives are focused on attracting deposits with high-rate certificates, Langley Federal Credit Union ($5.4B, Newport News, VA) is taking a different tack.

Share growth at credit unions nationwide picked up slightly in the beginning of 2024 as members flocked to higher-rate CDs. Although growth in certificates far outpaced the rest of the share portfolio —  43.0% year-over-year versus -9.8% for money market accounts and -9.4% for regular shares and deposits — balances in all share categories increased in the first quarter.

That growth gave credit unions enough wiggle room to reduce borrowing, which is traditionally a more expensive way to raise liquidity. However, after several years of relatively stable deposit costs, these, too, are on the rise.

“Much of our deposit growth — as is the case across the industry — has been through CDs,” says Curtis Baker, senior vice president and chief lending officer at Langley FCU. “You’re really just buying the money. You throw out good CD rates, and you try to win the market. It’s very expensive.”

But that’s not the only problem. Buying money also presents a philosophical quandary for institutions whose mission is to serve members of modest means. That’s because those high CD rates tend to attract more affluent depositors putting larger balances onto the books.

That didn’t sit right with Langley. So, at the end of 2023, the Virginia cooperative challenged itself to think more broadly about its deposit strategy.

“We made significant changes to our strategic goals for 2024,” Baker says. “The first was to focus less on overall deposit growth and more on helping many more members achieve a modest amount of savings.”

New Challenges Require New Ways Of Thinking. After a mid-decade push to rightsize its balance sheet, a Virginia cooperative understands how to pivot when times get tough. Read more in “In An Uncertain Economy, Langley FCU Rewrites Its Playbook Again,” available today on the Callhan client portal.

A High Yield For Low Savers

A look at its membership revealed roughly 100,000 members — or slightly more than one-quarter — held more than $400 in savings. Put another way, nearly 75% of its membership would have trouble covering an emergency expense of a few hundred dollars.

The credit union knew it could do a better job helping the average member build a safety net.

In late 2023, Langley FCU introduced a high-yield savings account with a 5% APY that maxes out at $10,000.

“It’s the best yielding product we have,” Baker says. “Our goal is to get as many people as we can to that product, but it’s not for those who are going to put in $100,000, $200,00, or $1 million. We’re extending our best rate to a more modest amount of savings.”

That 5% rate is on par with CD offers from other financial institutions that require an initial deposit of $500 or more. At Langley FCU, high-yield savings requires no minimum balance; it does, however, require enrollment in e-statements.

As it’s a reverse-tier product, balances higher than $10,000 receive 0.05% APY. The same rate applies if withdrawals exceed one per month. Notably, savers can only open the account digitally — no branch visits or phone calls — and accounts are capped at one per member.

Penny By Penny, Dollar By Dollar

Langley’s high-rate savings account encourages members to systematically save a little scratch every month. That’s an essential component of this product because these account holders haven’t built a savings habit and might not have much to set aside at the end of the day.

“It’s going to take some time to get to $400 or more because we serve a working poor demographic,” Baker says.

To that end, the credit union is looking to behavioral economics for strategies to nudge members to save through digital banking and other means. It is testing such strategies via a monthly email to members that includes multiple “nudging insights” to open a high-yield savings account, set up a recurring/automated savings plan in digital banking, set corresponding savings goals, join the credit’s savings challenge, or take advantage of Langley FCU’s step-up savings plan.

The credit union also provides members with their credit score every month and alerts them via email when there’s a change. This reminds them to keep logging in to check their score and keep track of their products and transactions.

“We want to encourage our members to use our digital channels, especially for transactions,” Baker says. “Members should be engaged with their balances and their products and services.”

Of course, sometimes, a gentle nudge just isn’t enough. That’s why the current product encourages setting up a systematic savings effort through automated transfer in digital banking.

“We’re thinking about how we might get more aggressive in forcing our members to confront this issue, which is lack of savings,” Baker says.

Performance And Results

To date, total balances for the 9,500 members who have opened a high-yield savings account exceed $57 million.

At $12,238, Langley FCU’s average share balance per member as of March 31, 2024, was lower than its peer group of credit unions over $1 billion in assets, according to data from Callahan & Associates. That’s to be expected of a credit union that serves a “working poor” demographic and is why Langley introduced high-yield savings to begin with.

AVERAGE DEPOSIT BALANCE
FOR U.S. CREDIT UNIONS
© Callahan & Associates | CreditUnions.com

“More people can enjoy [high-yield savings],” Baker says. “It democratizes our impact instead of focusing efforts on growing CDs.”

Langley FCU’s high-yield savings account is still in its early stages; however, quarterly performance data suggests the credit union is helping members save more. In the first quarter of 2024, Langley’s 6.3% share growth was much higher than the nationwide average of 2.4%.

SHARE GROWTH
FOR U.S. CREDIT UNIONS
© Callahan & Associates | CreditUnions.com

The credit union is posting this growth while falling slightly below peers on earnings, with just 0.50% in assets. That drop in ROA comes from socking away more in provision expenses; again, not surprising for a credit union that serves a poorer membership. Still, with an efficiency ratio of 74.2%, Langley FCU is bringing in revenue with limited overhead.

Ultimately, the credit union is performing well and Baker is confident Langley FCU’s pivot from total deposit balances to members with more than $400 is going to pay off for both the credit union and its members.

“I wish we did this going into 2020 versus 2024, but I’m glad we did it,” Baker says. “We said we’re going to be faced with buying money in the form of CDs. Let’s not do that. Let’s take this opportunity to make a major change in the way we do business and deliver on our vision more directly.”

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Today, Garcia is the senior director of multicultural strategy with True Sky Federal Credit Union ($918.1M, Oklahoma, City, OK). The credit union was the first in Oklahoma to earn the Juntos Avanzamos designation in 2014 and continues to be a leader in accessible financial services for the Hispanic community.

Here, Garcia talks about his role and serving a diverse market within Oklahoma City.

When did True Sky create the role of Senior Director of Multicultural Strategy? Why is this role important?

Daniel Garcia: True Sky has been serving underserved populations in the greater Oklahoma City metro for more than two decades. In 2022, it formed a new department to formalize its service of diverse communities, and I was named senior director of multicultural strategy.

Multicultural business strategy is not just a good idea — it’s essential to remain competitive in the financial services industry and to remain true to our founding principles of people helping people.

Did True Sky create this role for you?

DG: When I came to work for True Sky in 2003, I helped lead our efforts to serve the Hispanic community, which was the fastest-growing population group in Oklahoma City. It was a natural step for me to implement similar strategies and broaden our scope to serve other population groups within our diverse markets.

What challenges or opportunities does this role address? How do you address them?

DG: True Sky has formalized its approach to multicultural business with the understanding that the delivery of its mission to serve, empower, and enrich members’ lives must be intentional and with target efforts that are audience minded.

Diversity is not always embraced, usually due to a lack of information and understanding. Education has proven to be a great opportunity to learn about other cultures, backgrounds, and ethnicities. We align our education and outreach efforts with national heritage months to celebrate our diverse communities.

What goals do you have for this role?

DG: For workforce recruitment and development, I’d like to create an inclusive and equitable experience in which staff members thrive and view business operations through a multicultural lens. I’d also like to develop and deliver training for our programs and services aimed at serving multicultural needs.

For market research and outreach, I want to use data and analytics to better serve the needs within our markets. I want to apply a holistic approach to identify and help overcome developmental issues within our communities.

And for our multicultural advisory board, I want to continue to add community leaders to help align our efforts with the real needs of the community. These leaders hold us accountable to best serve all people within our communities.

Job titles say as much about the organization as they do the person. The “What’s In A Name” series on CreditUnions.com dives into notable, important, interesting, or just plain fun roles to find out what’s happening at the ground level and across the industry.

How do you work across the enterprise to create — and execute — strategies?

DG: Our multicultural department works closely with all True Sky departments to educate and implement strategies. We help identify gaps in workforce recruitment and placement to ensure we are serving members through all channels. We deliver training on specialized or non-traditional products and services. And we identify opportunities to develop products and services that focus on marginalized populations.

True Sky has been recognized in our community and throughout our industry for our success in serving underserved and marginalized population groups. We work hard to collaborate and share our success and strategies with all credit union-focused organizations that desire to better serve multicultural consumers.

What makes you a great fit for the job?

DG: My personal faith, background, experience, and education have all influenced my passion for this role. People helping people is such a great motive, and this role allows me to bring that statement to life. I consider myself a community servant who truly desires to help people improve their overall lives.

How did your previous work experience prepare you for this role?

DG: I’ve worked at True Sky for nearly 21 years. The majority of those years I focused on serving the Hispanic community in Oklahoma City, which is the largest minority and fastest-growing segment of our population. In my new role, I can apply the same strategies and broaden our scope to serve all of the other diverse communities.

To whom do you report? Who reports to you?

DG: I report to our chief lending officer, who oversees all aspects of serving our members and communities. I have one direct report with the title of community and business relations. I oversee all efforts related to our financial literacy programs, business-to-business services, and all community partnerships.

How do you track success in your job?

DG: Approximately half of my initiatives have measurable metrics and goals; the other half is relational and community work that can be difficult to track and measure. For the measurable metrics, we track member growth, deposit growth, and loan growth. Intentional strategies are in place to ensure the full onboarding of multicultural members.

What are some of your major achievements so far?

DG: My favorite success of 2023 has been the opening of a multi-resource food pantry. I serve on our grant committee and assisted in writing a grant to help overcome food insecurity and hunger. True Sky Foundation received the grant, which was offered through the National Credit Union Foundation, and helped cover the initial expenses to establish the pantry. We partnered with a local church located in a part of our metro that is considered a food desert. In addition to offering food, we collaborated with several other community partners to offer additional resources for the overall betterment of that community. We have also incorporated financial literacy workshops and workforce development to help overcome underlying issues.

What is your daily routine?

DG: On a regular day I spend about half my time in the office and the other half out in the community. I work closely with my direct report to ensure we best use our time to serve all of our markets. We collaborate with business and civic organizations to identify needs and then implement strategies to deliver the products and services needed.

How do you stay current with topics that fall under your role?

DG: I rely on local news, social media, industry news, podcasts, and reports. True Sky has worked hard to establish relationships within its multicultural community, and I visit businesses and organizations on a regular basis to stay informed on developing issues or concerns. I rely heavily on the input given by our multicultural advisory board.

This interview has been edited and condensed.

Job titles say as much about the organization as they do the person. “What’s In A Name” on CreditUnions.com dives into notable, important, interesting, or just plain fun roles to find out what’s happening at the ground level and across the industry. Read the series today.

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