Looking at the path forward for financial services, it’s energizing to see the passion, determination, and sense of purpose that define the spirit of the credit union industry.
You’re facing an era of challenges, but also one of immense opportunity. Credit union CEOs are stepping up with bold visions for growth, innovation, and service to their members.
According to the 2024 Strategy Benchmark from Jack Henry™ — a comprehensive study of the top priorities for our core bank and credit union clients over the next two years — credit union leaders are zeroing in on three primary priorities:
- Growing deposits
- Acquiring new members
- Increasing operational efficiency.
These aren’t just business goals — they’re part of a larger mission for credit unions to meet the evolving needs of their communities and members.
What’s most exciting is how you’re meeting those needs: by embracing modern technology, harnessing the power of data, and staying true to your people-first philosophy.
Growing Deposits: A Strategic Imperative
Growing deposits remains a top priority. In fact, 44% of credit union CEOs surveyed in the Strategy Benchmark say growing deposits is paramount.
In the face of tightening liquidity, ensuring a steady flow of deposits is essential to sustaining lending capacity and providing value to members. But it’s not just about gathering funds ‒ it’s about building deeper relationships with members, understanding their financial needs, and offering tailored solutions that resonate with them.
Technology plays a crucial role here. Open, modern platforms allow you to leverage real-time data, identify trends, and offer products and services that directly meet members’ needs. This data-driven approach can help you not only attract deposits, but also enhance member satisfaction.
Acquiring Members: Expanding Your Reach
At the heart of every credit union is a commitment to growth to serve more people. Acquiring new members is central to that mission.
Credit unions are particularly focused on reaching younger generations, an area where there’s still some work to do. Research shows there’s a gap in connecting with millennials and Gen Z. These groups, while digitally savvy and socially conscious, often don’t fully understand the benefits of credit unions or see them as relevant to their financial lives.
You have an incredible opportunity here ‒ to educate, to engage, and to inspire the next generation of members.
By investing in user-friendly digital platforms, mobile-first experiences, and financial education tailored to younger members, you can make credit unions the go-to financial choice for the future ‒ especially when you communicate the values that align with younger generations: your commitment to people over profit, your community focus, and your dedication to financial inclusion.
Increasing Operational Efficiency: Doing More With Less
Operational efficiency is another key area where credit union CEOs are placing their focus.
The reality is that it has become necessary to find ways to do more with less. Rising costs, increased competition, and evolving regulatory requirements all put pressure on your bottom line. But this can be viewed as an opportunity to innovate.
Modern, open technologies can help you streamline processes, reduce costs, and improve member experiences. From AI-driven chatbots that assist members 24/7 to automated workflows that free up staff time for more personalized interactions, you can leverage technology to work smarter.
This push for efficiency is about more than cost-cutting ‒ it’s about creating an organization that is agile, responsive, and ready to meet the future needs of members.
The Power of Data: Driving Strategic Decisions
One of the most exciting shifts we’re seeing is the growing focus on data strategy. Our Strategy Benchmark found that credit unions plan to increase technology investments between 6% and 10% over the next two years, with a priority on AI, automation, and data analytics.
You’re getting serious about data, and rightly so.
Data is the key to unlocking insights about member behavior, predicting future needs, and building personalized, impactful services. But we’re not just talking about collecting data in silos. CEOs are now prioritizing a unified, enterprise-wide approach to data strategy, ensuring that all parts of their organization can access and leverage the same insights.
By centralizing data and investing in advanced analytics, you’re better equipped to understand your members on a deeper level. This allows you to offer personalized financial solutions, anticipate challenges, and seize opportunities for growth.
Serving SMBs: A New Growth Opportunity
Another area where data is playing a transformative role is in credit unions’ efforts to serve small and medium-sized businesses (SMBs). More CEOs are recognizing that SMBs are a critical growth opportunity. These businesses are often underserved by larger financial institutions and are looking for financial partners that understand their unique needs.
By using data to gain insights into the SMB market, you can tailor your products and services to meet their specific needs. Whether it’s offering flexible lending solutions, providing cash flow management tools, or offering financial education for small business owners, you are well-positioned to become a trusted partner for SMBs.
The benefits of this approach are clear: serving SMBs not only diversifies your membership base but also strengthens local economies and reinforces your community-focused mission.
Staying True to Who You Are
Through all of this, one thing remains constant: your unwavering commitment to the credit union philosophy of “people helping people.” This is the foundation upon which your movement was built, and you’ve proven time and time again that it continues to be your guide as you move forward.
Every decision you make should be driven by this question: How does this benefit our members?
By staying true to your mission, you not only differentiate yourselves from traditional banks but also build lasting relationships with the people you serve.
A Bright Future Ahead
Looking to the future, there’s an incredible sense of hope and excitement for the credit union industry.
Yes, you face challenges. But in this time of new beginnings, you also have an extraordinary opportunity to innovate, grow, and make a meaningful impact in the lives of your members. You can lead the way with new thinking, bold strategies, and a renewed commitment to your mission.
And by focusing on your top strategic priorities, you position your organization for a bright and prosperous future.
At Jack Henry, we value the opportunity to empower credit unions to improve financial outcomes for members, businesses, communities, and the broader credit union movement.
Together, we can build a stronger, more resilient credit union movement that serves members for generations to come.
