CEO Brent Rempe joined Callahan & Associates for the third quarter Trendwatch webinar to discuss how credit unions can lead with purpose and adapt to evolving industry challenges. Using real-world examples from First Alliance — including an impact CD, mobile branch, and member stories — the leader shows how credit unions are the perfect partners to help members and communities overcome persistent inflation, a softening labor market, and shifting financial needs.

“Every member deserves a financial oasis,” Rempe says. “We make it happen.”

In this clip, learn how First Alliance operationalizes purpose to empower members to achieve a brighter future.

Don’t Stop Here. From classrooms to credit unions, Brent Rempe’s approach as CEO at First Alliance Credit Union blends education, service, and purpose-driven leadership. Read more in “Brent Rempe On Leadership.” Then dive into third quarter performance trends in Callahan’s Trendwatch webinar.

The post Every Member Deserves A Financial Oasis appeared first on CreditUnions.com.

What do hand-crafted beers and credit unions have in common? More than most people might expect.

Both industries succeed by doing the same essential things: knowing their communities, listening closely to their customers, and crafting experiences that reflect local tastes and needs. For credit unions, the analogy isn’t about chasing the latest trend or squeezing out more bottom-line growth. It’s about pursuing strategic growth, the kind that comes from clarity of purpose, differentiated service, and products built for real people.

The connection between craft breweries and credit unions is stronger than ever. Microbreweries win by being intentional: they understand their niche, invest in quality, cultivate loyal followings, and create spaces where people feel they belong. Credit unions that embrace similar principles can strengthen member relationships, sharpen their value proposition, and grow in ways that align with both mission and market reality.

Although our external environment has evolved, the core principle of this comparison endures: sustainable success starts with knowing who you serve and designing your strategy accordingly. The lessons below offer timeless guidance for leaders committed to intentional, purpose-driven growth.

Lesson No. 1: Dude, You’re Obsessed

Successful microbreweries are founded by people obsessed with making a better product for the consumer, often provoking such comments above.

The craft beer craze began when Fritz Maytag bought a failing Anchor Brewing Company in San Francisco, CA, at the turn of the twentieth century. He, and now hundreds of others, had a vision of a better product than those produced for the masses and was determined enough to share that conviction with others. Recognizing that the big brewers catered to bottom-line profit by using fillers and the cheapest possible ingredients (corn, rice, plain white sugar) to brew beers, microbrewers differentiate their offering by using historical ingredients of barley and malt.

Additionally, these craft brewers focus on pull marketing, educating the consumer about the value they offer rather than pushing large volumes through distribution channels and then spending billions of dollars on marketing to convince the consumer to drink their product.

Lesson No. 2: Passion Is Contagious

Passion at the top isn’t enough, but it’s a great start. Successful microbreweries then spread that passion throughout their company, often through thoughtfully crafted mission and branding statements that drive corporate decisions ranging from what ingredients to use to what markets to target.

Sam Calagione, founder of Dogfish Head Craft Brewery in 1995, echoes marketing pioneers when he says his beer is a different kind of business card that tells story of what Dogfish Head is all about. If he didn’t have pride in the products he offers, it would affect his ability to sell it successfully. The company’s employees make all decisions under the motto “off-centered stuff for off-centered people,” a mission that both guides and limits what the company will do.

Anchor Brewing also focuses on authenticity. In fact, the company has declined large orders from new customers when it lacks the capacity to brew in-house rather than trust a contract brewer.

Lesson No. 3: Local Is The New Global

By definition, most microbreweries are regional operations that measure their success locally. Not all businesses are founded to be giants, but that does not mean they cannot turn out solid growth and profitability.

Microbreweries often forge strong community ties. Founded in 1987, Brooklyn Brewery helped spark a renaissance in the New York borrough by spurring economic development through active local engagement. In San Francisco at Anchor Brewing, Fritz Maytag keeps a low profile but focuses his community efforts on making the brewery a civic hub — a place to gather and meet. He opens the brewery for special events and fundraisers to help local non-profits. Dogfish Head was founded as a brewpub in the small town of Rehoboth Beach, DE, where it became a vital business in a small beach community.

Lesson No. 4: Collaboration Breeds Success

In craft beers as in life, deeper knowledge begets better decisions. The more breweries sharing knowledge locally, the faster the entire industry can expand. With microbrews accounting for roughly 13% of the U.S. beer market by volume, there’s ample room for every brewery to capture a share.

When craft competitors to Anchor Brewing entered the San Francisco scene in the early 1990s, Maytag helped them develop rival products.

When Tom Potter, co-founder of Brooklyn Brewery, began his own entrepreneurial odyssey, he and his partner, Steve Hindy, visited breweries on the East Coast to learn more about the industry. The duo then included competing microbrews in their distribution strategy, even when their business advisors questioned the decision. Today, Brooklyn Brewery’s distribution arm is twice the size of the brewery itself.

The founder of Dogfish Head has published a book sharing not only the secrets to his business success but also some of the recipes he used to get there.

Lesson No. 5: When Life Gives You Lemons, Brew Beer

Rather than allowing size to be an obstacle to growth, microbreweries have turned this so-called detriment into an advantage.

Dogfish Head had only 10-gallon brewing tanks when it first launched its brewpub. The founder brewed three batches every day for five days a week in the early years, leading to continual innovation and experimentation, such as using a secondhand vibrating tabletop football game to brew its most popular beer. Anchor’s Maytag opted to remain a private, and thus smaller, entity to retain complete control of his product and not fall subject to the Wall Street demands of wider profit margins.

Being smaller also means being closer to customers and nimbler in responding. Calagione at Dogfish has questioned at what point a company takes action to address repeated feedback. If bigger companies are slower to react, it follows that smaller ones can react more quickly, thus showing customers they care.

Lesson No. 6: Different Business Models Work

In researching the many different craft breweries for this article, one common lesson stood out: there is no common business model.

Each of the breweries made different business decisions in their quest for sustainability and growth. Go public or stay private? Brew exclusively in-house or contract out to those with excess capacity? Start a standalone brewery or build a brewpub with dual income streams? Control distribution or outsource through third-party distributors?

To make the best decision, these successful breweries considered what best matched their mission and vision for the organization. What they share in common is their dedication to the consumer experience, the desire to make good business decisions, a recognition of the necessity to differentiate and innovate to beat the competition, and the ability to embed themselves in the community around them.

Ultimately, this “six‑pack” of lessons from craft breweries demonstrates what can happen when commitment to value, operational agility, and community focus shapes growth strategy. A credit union that stays true to its mission — committed to members, nimble enough to respond quickly, and rooted in serving a community — can achieve sustainable growth without sacrificing what makes it special. After all, size might offer scale, but smallness often offers the closeness and care that build lasting loyalty.

The post 6 Lessons For Credit Unions From Craft Breweries appeared first on CreditUnions.com.

Callahan clients can access the full version of this article right now on the client portal. Read it today.

The difference between a credit union with $50 million, $500 million, or $5 billion in assets goes beyond dollars and cents. Asset size can shape how efficiently credit unions operate, how they lend, and ultimately how they serve their members. In an industry where the largest institutions hold a disproportionately large share of assets, looking only at overall averages risks masking how mid‑sized and smaller institutions perform.

For a more nuanced look at performance, look across not only key metrics but asset sizes. Comparing peer groups defined by asset size uncovers patterns and trade‑offs that rarely show up in aggregated industry reports — giving credit union leaders a clearer picture of where institutions at different size levels excel or struggle.

MEMBER GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

With the ability to leverage scale and resources, larger credit unions consistently attract more members. Smaller institutions — lacking the scale to keep up with digital banking innovations — have fallen behind, and rural communities — where smaller credit unions tend to concentrate — have increasingly lost population to more urban centers. Yet, these defenders of financial health continue to provide crucial product and service offerings tailored specifically to their membership’s needs, emphasizing the vital role they play in their communities.

Book Your Free Performance Analysis Session. Develop a clear picture of your credit union’s performance with a complimentary scorecard from Callahan & Associates. Fueled with your desired KPIs plus a few new ones we might suggest, you’ll be in a better position to benchmark against desired peer groups and share findings with your board. Contact Callahan today.

LOAN PORTFOLIO
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

Examining the loan mix across asset tiers shows how credit unions fulfill the borrowing needs of their members. Smaller institutions carry a higher share of auto and consumer loans; mortgages and other long-term products comprise a smaller piece of the portfolio. As credit unions grow, expanded infrastructure, lending capacity, and product depth allow them to keep more of this activity in-house, increasing the share of mortgages, credit cards, and commercial loans in their portfolios.

Commercial lending peaks in the middle asset tiers where institutional bandwidth and local business relationships meet. It is a perfect snapshot of the credit union ecosystem in motion.

EFFICIENCY RATIO
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

Smaller credit unions carry heavier operational loads because each branch and every employee represents a meaningful share of the total. Larger cooperatives spread their expenses across bigger membership bases and deeper balance sheets, giving them space to operate more efficiently.

Growing institutions are fueling a steady, systemwide march toward lower expense ratios, but that growth does present intangible costs. The branches and employees that make up a meaningful share of total expenses at smaller credit unions also make up a meaningful share of the member experience. Those personal connections can shrink even as fields of membership and institutions expand — it’s a delicate balance credit unions must strike.

Ready To Read The Full Story? Callahan clients may access this exclusive content within the client portal. Read more about these ratios, then dive deeper into lending performance, fee strategies, operating performance, and more. Not yet a client but looking for expert insights to help you adapt to change, develop your organization’s leaders, and stay at the forefront of industry trends? Connect with our team to learn more.

The post How Asset Size Shapes Credit Union Performance Across 3 Metrics appeared first on CreditUnions.com.

Callahan clients can access the full version of this article right now on the client portal. Read it today.

For the first time in more than two years, credit unions reported a slight acceleration in annual member growth to the tune of 2.0% year-over-year. Although credit unions welcome new members every day, the rate at which these members have joined has been slowing — until now.

Credit unions reported a gain of 2.7 million net new members from the third quarter of 2024 to the third quarter of 2025. What’s more, they’ve added 920,402 members in the past three months alone, nearly twice the number gained during the second quarter of 2025.

Relationships Support Membership Growth

Core membership often starts on the deposit side, where helping members safeguard their assets is a positive first step toward building a trusting financial relationship.

Reflecting this trust, annual share growth at credit unions is slightly higher than the national personal savings rate, indicating that members are depositing their excess funds with credit unions at a slightly higher rate than at other financial institutions. Of note, bank customers are slightly more likely to invest funds in the stock market or other securities, whereas credit union members are more apt to build a savings-account-based nest egg. Still, this is a strong sign for credit union-member relationships.

CORE DEPOSIT GROWTH VS. SHARE CERTIFICATE GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

In addition to attracting members through deposits, credit unions are also welcoming members through lending, especially via real estate loans as new refinancing opportunities from late-year rate cuts renew member interest in credit union offerings. Notable, however, is that a rise in both HELOCs and credit card balances could indicate members are struggling and turning to credit unions for help.

At a time when the K-shaped economy overwhelmingly benefits high-wealth households, credit union membership growth suggests a renewed trust in institutions that prioritize people, purpose, and community. This is credit unions’ time to shine.

Ready To Read The Full Story? Callahan clients may access this exclusive content within the client portal. Read more about core deposits, then dive deeper into what increased membership means for the lending portfolio. Not yet a client but looking for expert insights to help you adapt to change, develop your organization’s leaders, and stay at the forefront of industry trends? Connect with our team to learn more.

The post Members Are On The Move. Credit Unions Are Here For Them. appeared first on CreditUnions.com.

Financial Wellbeing Isn’t Marketing. It’s Strategy. Members don’t remember rates. They remember who helped them feel safer and more confident with money — creating the emotional connection that drives deeper engagement and participation. This is especially important in a K-shaped recovery. By embedding financial wellbeing into products and experiences, you can improve member outcomes, differentiate your brand, and fuel sustainable growth. It’s not messaging, it’s strategy. Learn more today.

The post The K-Shaped Recovery And An Economy Divided appeared first on CreditUnions.com.

Callahan clients can access the full version of this article right now on the client portal. Read it today.

As the Federal Reserve continues to adjust its benchmark rates, credit unions across the country are watching closely. Lower interest rates are supposed to make borrowing more attractive and saving less so, but does this theory hold up in the real world?

The Federal Reserve typically lowers rates in response to economic weakness, and that uncertainty can make it hard to predict how households will react. Sometimes, lower rates are enough to jump-start lending and spending. Other times, they merely help steady the ship, preventing a slide into recession.

For credit unions, the key is balancing opportunity and risk. So, what might the future hold if interest rates continue to fall?

Loan Originations Will Continue To Rebound

In the third quarter of 2025, loan originations increased 17.7% year-over-year, a striking rebound and the highest level of originations through the third quarter since 2022. If more interest rate cuts are on the horizon, it stands to reason that demand for both new mortgages and refinances will increase.

YEAR-TO-DATE LOAN ORIGINATIONS
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

Member Appetite For Share Certificates Will Decrease

With a lower dividend rate, fewer members will want to park their savings in share certificates. Instead, they’ll gravitate toward more liquid options like regular shares or money market accounts. Members might also withdraw large portions of savings to chase the potentially inflation-beating yields of stocks or crypto.

The Net Interest Margin Will Move Closer To The Operating Expense Ratio

If low rates push members to refinance existing loans and take out new ones (in essence, repricing the loan portfolio) and liquidity pressure keeps the cost of funds from falling, then the spread between interest income and interest expense will shrink, compressing margins and creating headwinds on earnings.

Ready To Read The Full Story? Callahan clients may access this exclusive content within the client portal. Read it today. Not yet a client but looking for expert insights to help you adapt to change, develop your organization’s leaders, and stay at the forefront of industry trends? Connect with our team to learn more. 

The post 3 Ways Falling Rates Are Poised To Impact Credit Union Balance Sheets appeared first on CreditUnions.com.

At the center of that shift is the core system. It is where data, delivery, and decision-making all connect. Choosing a provider today is no longer a purely technological choice; it is a strategic one that shapes how credit unions serve members, manage growth, and adapt to what comes next.

And as the market continues to consolidate, knowing who leads, who’s gaining ground, and who’s standing firm has never been more important.

Fewer Players, Bigger Plays

Consolidation continued through the first half of 2025, as the number of active credit unions fell by 171 in the past 12 months, from 4,631 to 4,460. Three new institutions entered the field, but mergers and closures once again outpaced new formations — a reminder that although the industry continues to evolve, scale and efficiency are increasingly driving its structure.

Even as the number of players shrinks, credit unions are serving more members than ever before. Total membership climbed by 2.7 million, or 1.9%, reaching a record 145 million by mid-2025. That steady growth reflects the continued appeal of cooperative banking, especially in an environment where consumers are seeking value, stability, and trust.

Financially, the movement remains strong. Shares increased 4.9%, or $95.1 billion, to reach $2.042 trillion. Loan balances grew 3.9%, or $63.2 billion, to $1.7 trillion, signaling ongoing confidence from both lenders and borrowers.

Competition for deposits remains intense, but credit unions continue to prove that loyalty and relationship-based service can drive growth even when pricing power is limited. There might be fewer players on the field, but they are making bigger plays.

MARKET SHARE FOR TOP 20 CORE PROVIDERS BY NUMBER OF CREDIT UNION CLIENTS
# REPRESENTS TOTAL CREDIT UNION CLIENTS | % REPRESENTS TOTAL MARKET SHARE^*
SOURCE: Callahan & Associates

The Giants Reposition

The same names continue to anchor the core processing landscape, but their footing looks a little different this year. Fiserv remains the market leader with 1,155 credit union clients, representing 25.9% of the industry, although its share slipped 118 basis points from the year prior. Jack Henry follows with 535 clients, 12.0% of the market, after gaining 25 basis points over the same period.

Together, the two serve 37.9% of all credit unions by client count. Their combined presence shapes much of the industry’s technological direction, but the dynamics between them tell a story of slow, deliberate repositioning rather than disruption.

Jack Henry continues to strengthen its grip among the largest institutions, serving 214 credit unions with more than $1 billion in assets, two more than last year. Fiserv has 153 in that group, up by one. In the $250 million to $1 billion range, the momentum swung in Jack Henry’s favor, which now leads with 211 clients compared to Fiserv’s 172, a decline of 21 for the long-time leader.

Fiserv still dominates the smaller asset tiers, where legacy relationships and multi-platform flexibility keep it deeply embedded in community institutions. But the market share data suggests that some of that loyalty is being tested, as credit unions weigh the value of scale and support against modernization and adaptability.

The hierarchy remains — but the ground beneath it is moving.

The Current Beneath The Core

The core market keeps evolving, even when the surface looks still. Credit unions continue to merge, modernize, and migrate, and those quiet shifts reveal where the current is heading.

Of the 174 credit unions that closed their doors in the past 12 months, 36 were Fiserv clients, representing 22.4% of all closures. Including those that switched providers, Fiserv ended the year down 99 total clients, the largest decline of any vendor. Still, it remains the market leader, serving more than a quarter of all credit unions nationwide.

Corelation again stood out on the growth side, adding 23 new credit unions to its KeyStone platform. The company now serves 211 institutions, lifting its market share by 67 basis points to 4.7%.

Across the broader market, of the 27 core processors with at least $400 million in combined client assets, seven gained clients, 16 lost clients, and four held steady. The rankings barely moved, but the direction of change is clear. Fewer providers are winning a greater share of relationships, and the middle of the market continues to thin.

Mind The Platform

Symitar remains the industry’s most widely used platform, serving 699 credit unions across three providers: Jack Henry with 535, Member Driven Technologies (MDT) with 97, and Synergent with 67. Altogether, 15.7% of credit unions nationwide operate on a Symitar-based core.

The overall count of credit unions fell by four this year, but the shifts within that total reveal ongoing motion. Jack Henry lost nine clients, whereas Member Driven Technologies added five and Synergent held steady. The adjustments might seem minor, but they highlight how scale and service models continue to reshape vendor relationships beneath the surface.

Fiserv’s Portico platform moved in the opposite direction, adding 84 new credit unions in the past year for a total of 613 clients, or 13.7% of the market. The growth reflects Fiserv’s continued effort to migrate credit unions from older systems to a smaller number of modernized, integrated cores.

That migration came at the expense of several legacy platforms. Fiserv’s CUSA lost 38 clients, FedComp’s Platinum platform dropped 31, and Galaxy declined by 26. The trend points in a clear direction: fewer platforms, deeper functionalities, and closer alignment with credit union strategy.

The pattern is not about who is new or who is fading. It is about how the infrastructure of the industry continues to tighten — fewer systems supporting a larger share of members, and each playing a more strategic role than ever before.

The Human Connection

Technology continues to evolve, but the human element behind every core decision remains unchanged. Every line of code, every systems upgrade, every migration still comes down to people. The teams that run the operations, the vendors that build the tools, and the members they serve.

Core systems remain the foundation of that connection. They enable every interaction, every transaction, and every moment when a member chooses a credit union over another option. Even as artificial intelligence reshapes processes and automation expands capacity, success still depends on human judgment, collaboration, and trust.

Credit unions balance progress with purpose. They don’t chase the newest tool; they use the right ones to serve members better. The system powers the work, but people define its purpose. That is what keeps the movement human.

This page is updated annually with market share figures available at midyear. For a look at last year and how things have shifted, click here. Note: The market share data presented reflects the information submitted by participating companies. 

Evaluating Core Processors? Peer Suite Has You Covered. Whether you’re a credit union evaluating core processing solutions or a supplier evaluating market share, Peer Suite is loaded with technology partner data that makes it easy to uncover deeper insights to fuel your strategies. Curious to learn more? Schedule a conversation with Callahan & Associates today. Learn more today.

The post Leaders Of The Pack: The Top 20 Cores For Credit Unions appeared first on CreditUnions.com.

It’s a chance to hit the reset button — to reflect on where you’ve been and to focus on where you want to go. For credit unions, this isn’t just a business exercise. It’s an opportunity to recommit to a mission that’s foundational: people helping people.

The world is changing quickly, but that core philosophy remains your greatest strength.

It’s what sets you apart. It’s what draws members to you. The question now is how you can carry that timeless mission into a new year and new era of growth.

The Difference Is You

You know your community better than anyone.

You understand your members’ financial needs and their goals — whether they’re saving for a new home, launching a small business, or preparing for retirement. That deep connection is something big megabanks and fintechs simply cannot replicate.

On your path forward, you have a unique opportunity to build on that foundation and ensure you can meet the changing needs of your members for years to come. By prioritizing your strategic goals, you can position your credit union for a bright future.

Data from the Jack Henry 2025 Strategy Benchmark shows that credit unions are zeroing in on three key strategic priorities going into 2026:

• Increase operational efficiency.
• Grow loans.
• Acquire new members.

These priorities aren’t just about business growth — they’re about strengthening your ability to serve your communities and members.

The Power Of Purpose-Driven Priorities

Increasing operational efficiency isn’t about cost-cutting; it’s about making your credit union more agile and responsive.

When you streamline processes and automate routine tasks, you free up your team to do what they do best: engage with members and provide personalized service. This focus on efficiency allows you to get back to the core of your mission — delivering exceptional service and support that only a credit union can provide.

You’ve always been a trusted financial partner, and that trust is more important than ever.

By finding ways to do more with the same, you can dedicate more resources to the relationships that matter most. It’s about creating an organization that’s ready to meet the future needs of your members.

Growing loans and acquiring members are two sides of the same coin.

Your ability to provide access to capital is a cornerstone of a healthy community, helping members achieve their dreams and businesses expand. And as you know from Callahan’s Trendwatch webinar series, loan and savings growth is picking up, especially for credit unions who are focused on deepening their member relationships.

Looking Ahead With Confidence

In terms of top concerns, credit unions told Jack Henry they’re thinking about issues like fraud losses, acquiring younger members, and cyberattacks.

These are not easy challenges, but they are all connected to a central theme: the need to future-proof your credit union.

You cannot afford to settle for the status quo.

To tackle these challenges head-on, credit unions need a technology platform that is comprehensive and integrated. A system with an open architecture is essential because it gives you the flexibility and control to evolve your technology ecosystem. This means you can stay agile and integrate new fraud and cybersecurity technologies easily as they emerge.

With open technology, you can quickly add new fraud prevention tools and instantly update your cyber defenses, giving you the power to protect your members and their assets.

This way, you aren’t just reacting to what’s next — you’re ready for it.

When it comes to acquiring younger members, the digital experience plays a key role in helping you achieve your strategic goals. The way you interact with these members digitally will define their perception of your credit union. Younger generations want seamless, mobile-first experiences that align with how they live and work.

By investing in digital banking and automation, you can meet these expectations and show them that a credit union is the perfect choice for their financial future.

Eyeing The Horizon

As your credit union considers what’s next, there seems to be a clear picture of the technologies that will help you thrive.

According to the Jack Henry 2025 Strategy Benchmark, credit unions are planning to invest most in fraud prevention, digital banking, and automation. These aren’t just one-time upgrades — they’re part of a continuous journey of technology innovation.

By focusing on these areas, you’ll be addressing your top concerns while laying the groundwork for exceptional service and support. Your technology becomes a tool for building deeper relationships, allowing you to provide instant, personalized experiences that truly meet your members’ needs.

This continuous innovation is what helps you deliver on the promise of your mission and stay ahead of the curve.

The Role Of A Reliable Technology Ally

As you think about your path forward, it’s also important to consider the kind of support you need to get there.

Your technology provider should be more than a vendor — it needs to be a reliable ally who can support you through every step of your evolving journey. It should grow with you over time, providing the service and innovation you need to succeed. The right technology provider plays a key role in your business value and success.

The credit union mission is still the same — your members come first and your focus is on them. Your commitment to community involvement and financial inclusion is what makes your credit union so special.

A strong technology ally should share that philosophy and stand by you as you support your members and their communities. They should be proud to help you help others.

A New Beginning

You know the power of your mission; and you’ve always been committed to making a difference.

Now, you can use technology as a tool to amplify that mission and serve your members in new and innovative ways. By focusing on the future and staying true to who you are, you can not only meet the challenges of today but also build a stronger, more resilient credit union movement for generations to come.

At Jack Henry, we’re proud to stand with you, empowering the credit union movement with technology that strengthens the connections between people and their financial institutions.

For information about Jack Henry, visit jackhenry.com.

The post A Fresh Start For A Timeless Mission appeared first on CreditUnions.com.

By 2026, hundreds of financial institutions serving millions of households nationwide are expected to offer BNPL. The banking industry is responding to the rapid rise in demand for this payment option, particularly from the 70% of U.S. consumers who would prefer to use BNPL from their trusted financial institution rather than fintechs like Klarna or Affirm.

It’s timely that financial institutions are entering the space: members have responded positively to this flexible financing solution from their credit unions. In the months following launch, credit union BNPL programs saw more member usage than all fintech BNPL providers combined. Equipifi’s aggregate data shows over 80% of members continue using their credit union’s BNPL into the second year, boosting usage by 34% compared to the previous year.

This level of consumer adoption is typically seen with innovative fintech products, not with traditional brick-and-mortar financial institutions. And yet, we’re seeing it happen with forward-thinking credit unions. Even more excitingly, the growth appears to be accelerating.

These BNPL products are all powered by a legacy piece of technology that is giving credit unions a competitive advantage over their fintech counterparts: Their banking core.

The core gives credit unions a 360-degree understanding of their members’ financial position and overall banking relationship. It provides real-time insights into each member’s budgeting needs. In other words, credit unions have all the data elements to determine a member’s true propensity to repay loan products.

It also allows them to design a best-in-class BNPL program.

The Advantage Of Your Banking Core Data

In today’s digital age, consumers make purchase decisions and engage with financial services differently. They expect everything at their fingertips, which makes accessibility, transparency, and flexibility essential features for any banking product looking to gain traction. A banking core-powered BNPL solution provides exactly that.

• Offers Powered By Banking Relationships: Unlike fintech BNPL providers, credit union BNPL can give members a clear understanding of their purchasing power whenever they need it. Members appreciate that the BNPL offers they receive are based on their individual financial circumstances and account for their ability to pay over time. That means no surprises and no accidental overextension.
• Removing Rejection From The Process: Compared to the fintech BNPL experience, which typically requires an application and approval process, credit union BNPL removes friction. Using cash flow and relationship data in the core, credit unions can underwrite members more efficiently, generating pre-approved BNPL offers. The result? No application. No wait time. No fear of rejection. And what’s more, members appreciate the convenience: they are only a few clicks away from completing the loan and seeing the funds deposited into their checking account.
• Always On And Accessible Now: The pandemic accelerated the growth of online shopping and with it a need-it-now mentality. Consumers are generally less patient, whether it is for a product that takes too long to be delivered or a service they have to wait to receive. BNPL gained popularity because it helps consumers purchase items that they might otherwise have had to wait and save for. A survey conducted by Michigan State University FCU ($8.2B, East Lansing, MI) found many members wouldn’t make certain purchases at all without access to BNPL. In fact, Gen Z and millennials prefer products like BNPL because it allows them to budget for the future without sacrificing their present quality of life. That makes credit union BNPL even more compelling. Because it is connected to the core, members can access offers at any time of day, accept loans in seconds, and receive funds instantly.

Credit unions are taking a popular payment format like BNPL and making it smarter, more intuitive, and frictionless.

Your Banking Experience On BNPL

Connecting your banking core with a high-engagement product like BNPL unlocks even more advantages.

Since the credit union originates these BNPL loans and tracks repayment within the core, they gain insights into their members’ repayment behavior. This is particularly valuable at a time when BNPL activity is largely absent from consumer credit profiles.

And because the core is at the center of a credit union’s standard products, the benefits of BNPL can be extended to other services with minimal friction. Here’s how:

• Smarter debit cards. A core-connected BNPL product enables all existing debit cards to offer splitting payments on eligible transactions. Credit unions who offer BNPL on the debit card have seen a 16 percent increase in debit card usage, boosting wallet share.
• Smarter checking accounts. BNPL adds flexible financing capabilities to checking accounts, allowing credit unions to better meet members where they are. Much like the holiday loans that give members more cash flow during high-expenses periods, checking accounts enabled with BNPL can play a similar role year-round, all without any manual intervention.
• Smarter banking experiences. Much of today’s BNPL activity takes place outside traditional financial institutions, leaving credit unions with limited visibility into repayment behavior. Credit unions can use their own BNPL products to start filling in that gap. Many are already using members’ credit union BNPL history to help them access more loan products, often at better rates.

Starting With Your Own Data

Financial institutions have a growing role to play in shaping the future of BNPL. And the banking core often contains the signals that can help determine when and how to begin.

In fact, most credit union BNPL started with one simple question: Are our members already using BNPL?

Then they looked at the data.

For example, Arizona Financial Credit Union ($3.6B, Phoenix, AZ) tracked fintech BNPL activity in its debit card data monthly. By the end of 2024, nearly $2 million was leaving the institution every month, and the volume has been growing 16% annually.

Educators Credit Union ($3.6B, Mount Pleasant, WI) asked the same question and discovered that 46,000 of its 150,000 members were already using BNPL elsewhere.

As member expectations evolve, many are looking to their primary financial institution for modern solutions. If they can’t find what they need, they will turn elsewhere

In 2025, Affirm announced that over 2 million consumers had activated its BNPL-enabled debit card. Klarna launched its own debit card in July 2025 and saw over 1 million cards activated in just 11 weeks.

As more consumers adopt fintech BNPL cards, the unique data advantage credit unions hold in their banking cores may diminish.

For now, however, there’s still a significant opportunity to use that core and the insights it holds to deliver meaningful, competitive financial experiences.

Lo Smith is a fintech executive with over a decade of experience helping financial institutions bridge the gap between traditional financial services and emerging fintech. As Head of Revenue at equipifi, she leads go-to-market strategy, driving success for banks and credit unions using tailored BNPL solutions that align with their strategic goals. She brings a deep understanding of stakeholder needs, operational execution, and long-term growth. Previously the Director of Financial Institutions at Array, Lo is passionate about enabling institutions to thrive in an evolving financial landscape. She can be reached at lo.smith@equipifi.com.

equipifi is the leading Buy Now, Pay Later (BNPL) platform built for financial institutions. Its white-label solution integrates with major banking cores, aligning BNPL offerings with consumers’ financial goals and banking preferences. equipifi enables institutions to boost engagement, grow market share, and deliver transparent, manageable installment options directly through their own apps. https://www.equipifi.com/bnpl-for-credit-unions

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I grew up in central Washington and later moved to Seattle. Credit unions were all around me, yet I didn’t join one until my late twenties. Why? Because no one in my peer group talked about them, and digital banking convenience was all I cared about. Big banks had already mastered that, and they were ready for us.

That’s the reality credit unions face today. I’m 29 — a “Zillennial,” born in 1996, straddling millennials and Gen Z. My first phone was a pink Motorola Razr flip. I watched dial-up give way to broadband, then smartphones, and now AI. I’ve lived through every stage of the digital transition, and my expectations — and those of my peers — have been shaped by technology that adapts seamlessly to our lives.

The Internet Caveman And My Daughter’s Future

I joke that one day I’ll tell my daughter I was an “internet caveman.” Before AI, I had to type a question into a search bar, click through half a dozen sources, and piece together an answer.

Then came Google Gemini’s AI summaries. I didn’t ask for it. I didn’t expect it. But once it appeared, it delighted me so completely that I adopted it instantly — and suddenly, Google had my loyalty. I had bounced between search engines before — Google, DuckDuckGo, others — but this one experience of seamless usefulness created stickiness overnight.

That’s the essence of easy technology adoption: When something works so well and feels so natural that people don’t need to be convinced. They just use it — and they don’t go back.

That is what credit unions must provide if they hope to retain the next generation of members.

A Generational Warning

The statistics are clear. According to McKinsey, only 31% of credit union members are millennials or Gen Z. Nearly 70% of membership skews older, heavily toward baby boomers, who still account for about 39% of members.

At the same time, the NCUA reports that over half of federally insured credit unions lost members year-over-year in 2024. Membership isn’t just stagnant; for many institutions, it’s shrinking.

And the demographic cliff is coming fast. Baby boomers still control the majority of U.S. wealth, but over the next two decades an estimated $84 trillion will transfer to millennials and Gen Z, according to Cerulli Associates.

The question is simple: when that wealth moves, will it stay in credit unions? Or will it flow into big banks and fintechs that already meet younger generations where they are — mobile-first, frictionless, and personalized?

Held Hostage By Legacy Cores

At the heart of this challenge is the core. Too many credit unions are still tied to technology designed for a world that no longer exists — systems that haven’t fundamentally evolved in decades.

Leaders know the frustration. Inflexible contracts. Long development cycles. Workarounds stacked on top of workarounds. The very systems designed to empower credit unions have become shackles.

Meanwhile, my peers almost never visit branches. Their financial lives happen entirely online, through apps that anticipate their needs. Every day they interact with companies that deliver seamless digital experiences. And when their credit union can’t do the same? They switch. Quietly, permanently, and without regret.

The Stakes: A Wealth Transfer Unlike Any Other

The wealth transfer isn’t hypothetical — it’s already underway. Millennials and Gen Z are beginning to inherit not just assets, but financial decision-making power.

If credit unions don’t modernize their technology now, they will miss this moment. Losing younger members today means losing the opportunity to serve them tomorrow, when they’re managing mortgages, retirement accounts, and small business loans.

Imagine trying to convince a 25-year-old to stick with a clunky app that doesn’t integrate seamlessly with the rest of their digital life. You don’t get a second chance. Once they’ve moved their money, they’re gone.

The Credit Union Magic — And Its Fragility

Credit unions are different. They’ve always been different. They sponsor the little league teams, fund scholarships, and stand by their members when no one else will. They’re guardians of their communities — steady protectors in a financial world too often dominated by profit motives.

But guardianship isn’t enough if the sword is dull. The magic of credit unions — their member-first purpose — is fragile if it’s not matched by the technology members expect.

Today’s “dragon” isn’t the big bank across town. It’s irrelevance.

Future Members. Future Ready.

The solution isn’t chasing every shiny tech trend. It’s building a foundation that allows credit unions to evolve at the speed of their members’ expectations. That means modular, cloud-native systems, open APIs, and the ability to integrate tools like AI, fraud prevention, and predictive insights without breaking the bank.

It’s also about something deeper: delight. Members don’t care whether it’s a “core upgrade” or “microservices architecture.” They care that their credit union is easy to use, available on their phone, secure, and anticipates their needs.

Think of my daughter’s generation. By the time she’s managing her first checking account, she won’t see any difference between talking to her AI assistant and talking to her credit union. That’s the level of seamlessness tomorrow’s members will demand.

Accountability For Leaders

I didn’t join a credit union until 26. If I had only judged on digital convenience, I probably never would have joined at all. And many of my peers haven’t.

But once I did, I saw what makes credit unions powerful: their ability to help people unlock opportunities, weather storms, and build futures. That power is too important to lose.

And here’s where the accountability falls:

If you aren’t challenging your core provider, you’re choosing stagnation.

If you aren’t evaluating alternatives, you’re risking irrelevance.

If your technology stack isn’t designed for the next 20 years, you’re gambling with your members’ trust.

This isn’t a plea. It’s a reality. The future of the movement depends on leaders making hard decisions now. Because if credit unions don’t modernize, they won’t just miss out on growth — they’ll lose an entire generation of members.

And once lost, that generation isn’t coming back.

Garrhett Petrea is vice president of sales at Vyrdia. He can be reached at gpetrea@vyrdia.com.

Vyrdia is reimagining core software for a new generation. Built to be cloud-native, flexible, and member-first, Vyrdia empowers credit unions to thrive in a digital-first era while staying true to their community roots.

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