The National Credit Union Administration’s final succession planning rule (12 CFR Parts 701 and 741, RIN 3133-AF42) went into effect on Jan. 1, 2026. The rule requires both federal credit unions and federally insured, state-chartered credit unions to establish written succession plans.

This article describes the key things credit union leaders need to know to comply with the letter of the new rule. For our thoughts about the opportunity available to credit unions that choose to be more strategic about their compliance efforts, read, “The Opportunity For Credit Unions In NCUA’s New Succession Planning Rule.”

What The New Succession Planning Rule Says

NCUA’s newly effective succession planning rule requires federal and federally insured, state-chartered credit unions to establish a board-approved, written succession plan consistent with their size, complexity, and risk of operations. Credit unions can leverage this NCUA video series for further clarification on what is required.

The agency has also provided a succession planning template for smaller credit unions that we find too limited to be of much strategic value. We offer suggestions in the next section for how to deliver a right-sized plan that stays strategic.

Credit unions with less than $100 million in assets and minority depository institutions of all sizes may also be eligible for assistance in a variety of areas, including succession planning, through NCUA’s Small Credit Union and Minority Depository Institution Support Program.

The rule sets forth that these credit union jobs, or their equivalents, must be included in the written succession plan, at a minimum:

• • Members of the board of directors.
  • “Management officials” and “assistant management officials,” as those terms are defined in Appendix A of the rule, if provided for in the federal credit union’s bylaws, and, to the extent not already covered, the senior executive officers identified in § 701.14(b)(2).
  • Any other personnel the board of directors deems critical given the federal credit union’s size, complexity, or risk of operations. This includes new positions that may be required due to planned changes in operations, supervisory landscape, or corporate structure.

As a best practice, we also recommend credit unions include the members of their audit and supervisory committees in succession planning.

The rule requires each credit union’s succession plan to include the following information:

• • The title for each covered position and the date the incumbent’s term expires (if serving in a term-limited capacity) or other anticipated vacancy date, if known (such as the incumbent’s retirement eligibility date or announced departure date).
  • The credit union’s plan for permanently filling vacancies for each of the positions.
  • The strategy for recruiting candidates with the potential to assume each of the positions, including how the selection and diversity of skills among the employees covered by the succession plan, collectively and individually, promotes the safe and sound operation of the credit union.

The rule also requires that boards of directors review the succession plan every two years and that new board members review and become knowledgeable about the plan within six months of becoming a director.

In the event circumstances require a substantial deviation from the board-approved plan, management and/or the board have the flexibility under the new rule to do what they deem necessary at the time, consistent with their fiduciary duties and legal responsibilities. While this action doesn’t have to be documented in the board’s meeting minutes, it should be reported to the board as soon as possible.

Don’t Forget To Be Strategic

We put together this short guide to the rule to help you with basic compliance with NCUA’s new succession planning rule. However, We urge you to take advantage of the strategic opportunity available to you as you comply with NCUA’s new succession planning rule. Link your succession plan to your strategic plan, and boost your retention with thoughtful compensation and appropriate SERPs that make your credit union a place where top talent wants to work.

For guidance on how to do this, read “The Opportunity For Credit Unions In NCUA’s New Succession Planning Rule.”

CEO and lead consultant of Quantum Governance, L3C, a Callahan company, Jennie Boden brings more than 30 years of experience in governance, strategy, leadership, and development to the field. Jennie leads a team of consultants, topical specialists, and other experts to meet the governance and strategic needs of the firm’s clients. For nearly a decade, Jennie has been the catalyst for developing countless tools, products, and services, as well as alliances with the firm’s strategic partners. 

Executive benefits consultant & founder of PARC Street Group, Christopher J. Jones, ChFC, CLU, provides leadership across the firm alongside Bruce D. Smith. Known for his analytical mindset and mathematical precision, Chris works closely with credit unions to design Supplemental Executive Retirement Plans (SERPs) that are not only durable and compliant but also grounded in data that supports long-term performance. With more than three decades in financial services, he has built a reputation for ensuring that every plan rests on solid numbers and delivers on its promise to executives and boards.

The post A Short Guide To Compliance With The New Succession Planning Rule appeared first on CreditUnions.com.

Case in point: The National Credit Union Administration’s final succession planning rule (12 CFR Parts 701 and 741, RIN 3133-AF42) went into effect on Jan. 1, 2026. The rule requires both federal credit unions and federally insured, state-chartered credit unions to establish written succession plans.

It can be tempting to look at a new regulation as simply an addition to the compliance burden credit unions face as government-insured, and therefore regulated, financial institutions. But we urge you to look at this regulation as an opportunity — and to undertake complying with it as a strategic imperative, not just a regulatory one. Credit unions that make their succession plans serve their strategy will reap the benefits of stronger governance and more effective C-suite leadership.

The NCUA has already published a lot of information about the new rule, and basic compliance with the rule is straightforward. But getting the most out of your credit union’s succession plan means going beyond the basics. We encourage credit union leaders to focus on linking their succession plans to their strategic plans, ensuring that compliance means not just generating another policy document but rather creating a roadmap to the future.

This article will give you some ideas about how to create this link between your succession plan and your strategic plan and encourage you to put “teeth” into your efforts.

New Heights For Board And Executive Performance

The new rule, which was finalized in late 2024, recognized NCUA’s goal of ensuring credit unions plan for the transitions of board members and top leaders.

On the occasion of the rule’s passing, then-NCUA board chairman Todd Harper said, “We know that the failure to plan for management and key decision-maker transitions comes with a cost. The potential costs range from an unanticipated merger of a credit union or its failure when key personnel depart.”

Complying with the new rule is an opportunity to think strategically and not only prepare for planned succession but also be able to readily answer the question, “What would you do if your CEO or manager called your board chair on Friday night and said, ‘I’ve taken a new position. I am giving you notice that I’ll be leaving as soon as the terms of my contract allow’?” Taking time to consider what your credit union would do with an unexpected change in leadership points to the importance of strategic succession planning.

In all, it’s important to do more than check a box to fulfill this compliance requirement. Have conversations now about what skills are needed in your next C-suite executive or board member so everyone on your team will be aligned with the organization’s strategy, you can recruit and hire better, you can do a better job with board renewal, and you will be in a better position to face unexpected vacancies.

A number of assessments and other resources can help shape these sometimes difficult conversations. A third party is oftentimes necessary to ensure that strategic discussions about term limits and recruitment practices don’t devolve into personal attacks. Knowing your current board matrix, understanding where there are gaps or opportunities for growth, and how to take action are critical to your success. You don’t have to figure it all out by yourselves.

Succession planning for board members is clearly an area in which many credit unions have room for growth. A national study done by Quantum Governance, L3C, CUES, and The David and Sharon Johnston Centre for Corporate Governance Innovation, Rotman School of Management found that 45% of credit union leaders believe they are adequate or less than adequate at attracting people with the right skills to their board. In addition, the research found 57% of national respondents believe they are only adequate or less than adequate at regularly renewing their board’s membership. Credit unions of all sizes can benefit from case studies of credit unions having success evolving their succession planning and board renewal processes.

On the executive side, credit union succession planning is more effective when you have designed your executive compensation and benefits to attract and retain the right people. In other words, executive compensation and benefits, designed well, will make your succession plan a better retention tool.

The use of Supplemental Executive Retirement Plans (SERPs), for example, can help credit unions become an employer of choice for top talent. 2024 research published by NFP, an Aon Company, found that 82%of the 209 executive benefits decision-makers surveyed identified executive benefits as strategically important to their overall company success.

What Credit Union Leaders Can Do

As the new year continues to unfold, we suggest doing four things in response to the NCUA’s new succession planning rule:

1. 1. Shift to an opportunity mindset. Rather than see the new rule as an additional burden, look to gain every strategic benefit you can from your compliance efforts.
   2. Don’t check the box; do the work to be strategic. Filling out a cookie-cutter succession plan is tempting. But having the conversations with your leaders and team members to clarify what your organization needs most from its people will serve your organization and its members better in the long run.
   3. Recommit your credit union to outstanding governance and executive leadership. When you do this, you can’t help but work to make your succession plan strategic. With a solid succession plan in place, one you regularly review and update, you’ll move beyond compliance to effectively supporting your credit union’s future.
   4. Analyze your executive compensation once or twice a year. These check-ins are important to ensure your compensation programs are in line with your goals and the marketplace for talent.

We urge you to take advantage of the strategic opportunity available to you as you comply with NCUA’s new succession planning rule. Link your succession plan to your strategic plan, and boost your retention with thoughtful compensation and appropriate SERPs that make your credit union a place where top talent wants to work.

CEO and lead consultant of Quantum Governance, L3C, a Callahan company, Jennie Boden brings more than 30 years of experience in governance, strategy, leadership, and development to the field. Jennie leads a team of consultants, topical specialists, and other experts to meet the governance and strategic needs of the firm’s clients. For nearly a decade, Jennie has been the catalyst for developing countless tools, products, and services, as well as alliances with the firm’s strategic partners. 

Executive benefits consultant & founder of PARC Street Group, Christopher J. Jones, ChFC, CLU, provides leadership across the firm alongside Bruce D. Smith. Known for his analytical mindset and mathematical precision, Chris works closely with credit unions to design Supplemental Executive Retirement Plans (SERPs) that are not only durable and compliant but also grounded in data that supports long-term performance. With more than three decades in financial services, he has built a reputation for ensuring that every plan rests on solid numbers and delivers on its promise to executives and boards.

The post The Opportunity For Credit Unions In NCUA’s New Succession Planning Rule appeared first on CreditUnions.com.

APL Federal Credit Union ($680.8M, Laurel, MD) tackles that problem with an associate volunteer program. Now, it’s expanding those efforts to include an even younger demographic.

APL has had an associate volunteer program since 2012. It typically hosts three volunteers who attend board meetings, participate on committees, and more. Those roles have a one-year term, but most participants earn reappointment, provided the experience is mutually beneficial. And when it’s time for a board member to retire, the credit union has a pool of vetted replacement candidates.

“When openings come up on the board, there’s a group of people the nominating committee knows who are already engaged,” says CEO David Woodruff. “On Day 1 when they hit the board, they’re fully engaged.”

Still, APL had to face the reality that out of its nine-member board, generally two-thirds are retired. That beget the question of how to recruit younger voices to assure better representation. The answer? APL has broadened its horizons with a junior associate volunteer program of four college students.

“The board struggled with getting a commitment from younger people to take on board assignments,” Woodruff says. “Younger people typically have family responsibilities and kids and sports and all kinds of things obligating their time. It can be a challenge in those younger age ranges to get somebody who wants to commit to a three-year term.”

To involve younger volunteers and prepare them for service, APL taps its roots. The credit union has a community charter but was originally formed to serve employees of the Applied Physics Lab (hence APL) at Johns Hopkins University. APL leans on that experience to recruit college students to serve as junior associates.

“They do it for a year, and get the experience,” Woodruff explains. “It’s good for them, and it gets younger voices into our discussions.”

The ultimate aim is to build a pipeline for the associate volunteer role, but junior associates aren’t a shoo-in — they’ll still need to apply to move up to the next level.

In The Room Where It Happens

The current crop of junior volunteers includes four college students representing four different universities.

The credit union posted the position online, and Woodruff admits he thought it would be a challenge to attract candidates. Within two weeks, five applicants had applied. One wasn’t the right fit, but the credit union accepted the other four. Credit union membership is not required to apply, although applicants must be eligible for membership and must join the credit union before they can serve.

Volunteers in the associate program learn about the credit union and serve on a committee — either asset liability, information security, or planning and governance — but junior volunteers may attend various committee meetings to better understand the inner workings of the board and participate where appropriate.

The junior group also has four-on-one Zoom sessions with Woodruff and other executives to learn about how the credit union operates and the challenges it faces in various disciplines, including finance, marketing, lending, IT, and more.

In early January, APL brought associate and junior volunteers together with the board for its annual strategic planning session, with the event timed around when students were on their mid-semester break. The event was held in-person, and all participants were on-site at a hotel for the event, with associate and junior volunteers participating in breakout sessions and larger discussions. They then presented to the larger groups on key takeaways from breakout sessions.

“That was the highlight of this year so far,” Woodruff says. “Their perspective was fantastic. “We’re talking about how to reach people in today’s world, and they all have very different perspectives on it, very different from the 60-year-olds and the rest of us.”

The younger cohort’s involvement also helped enliven the board, Woodruff adds. Including less-seasoned participants in the conversations has helped open directors’ eyes by bringing in the views of those who deal with financial services matters daily.

“It wasn’t like we just invited younger people into the meeting,” the CEO says. “They’ve been with us for months and have been very dedicated. They care about the issues of the credit union. They’re getting exposed to how an organization thinks about things and makes decisions and chooses directions at a high level. It’s exciting on both ends.”

Peer Participation

The junior volunteers do not receive college credit for their service, but the leadership experience makes a good addition to a resume, says Woodruff, particularly for those interested in careers related to banking, finance, and similar fields.

One of the key benefits for APL has been a strong, consistent pipeline of new blood that can step into board service.

“We all deal with the challenge of an aging board,” Woodruff says. “I don’t believe board members hang on just because they want to hang on. Oftentimes, I think they feel like if they leave there will be a void and there won’t be the same level of support for the staff and the credit union. When we bring the associates into the meetings, they don’t sit in the corner — they sit at the table and participate.”

Board Approval

Junior and associate participation has helped APL’s older volunteers feel confident that when they’re ready to step back, someone is prepared to step in, ensuring there won’t be a hole or gap in service.

Although junior and associate volunteers serve just one-year terms, the goal is that over time both programs will lead to a more diverse board. So far, things seem to be on track. Woodruff noted that one junior volunteer has already expressed interest in continuing on at the associate level if the opportunity arises.

Of course, board buy-in has helped the program gain momentum, says Woodruff. In fact, APL’s board drove the process, with one director in particular championing it. That led to greater buy-in than if Woodruff or another executive had pushed for younger participants, the CEO adds, since that might have seemed like existing directors were on the verge of being replaced. Woodruff says any early hesitation quickly faded once the new volunteers joined the boardroom.

“I think we were concerned that these college students would be intimidated by all these old people,” Woodruff says. “Certainly in the first couple of meetings they just listened, but as they attended other meetings and committees and our strategic planning retreat, they started sharing and participating as peers with the rest of the group.”

Do You Have A Strategy To Solve A Common Challenge? Credit unions are recruiting new volunteers by meeting them where they are. How are you responding to the evolving needs of volunteers? Callahan Roundtables put leaders in the same room to share solutions, solicit feedback, pose questions, and more. Inspiration is a Callahan Roundtable away. Learn more today.

The post How APL FCU Builds A Board Succession Pipeline appeared first on CreditUnions.com.

In the firm’s State of Credit Union Governance report, Quantum Governance asked two central questions:

1. 1. What are the skills that add the most value in the boardroom?
   2. What are the highest priorities when recruiting new board members?

The results are surprising.

WHAT BOARD MEMBERS VALUE IN THE BOARDROOM VS. WHAT IS PRIORITIZED IN RECRUITMENT
FOR STATE OF CREDIT UNION GOVERNANCE RESPONDENTS
SOURCE: Quantum Governance, L3C

Although Ability to focus on the future (prioritization 51% and value 76%) and Financial literacy (prioritization 50% and value 45%) fell in the top three responses for both questions, there was little alignment beyond this.

Most respondents prioritized Demographic diversity (53%) over Ability to focus on the future (51%). Hard skills like Financial literacy (50%), Specific operational expertise (48%) and Professional services expertise (43%) rounded out the top five responses.

But on the question of what skills add the most value, the respondents told a different story. Only one of the top five responses — Financial literacy (45%) — was related to hard skills; the remaining skills were human skills like Ability to focus on the future (76%), Independent mindedness (66%), Understands the membership (44%) and Consensus building (38%).

Strategic Insights

• Credit unions are not aligning their recruitment efforts with what they value most in the boardroom, but they should.
• The most valued skill in the boardroom is Ability to focus on the future — or directors with a strategic mindset.
• There is a shift away from valuing hard skills in the boardroom to valuing human skills.
• Financial literacy is the most valued hard skill in the boardroom.
• Although credit unions prioritize Demographic diversity most in terms of recruitment efforts, significantly fewer respondents actually value it.

CEO and lead consultant of Quantum Governance, L3C, a Callahan company, Jennie Boden brings more than 30 years of experience in governance, strategy, leadership, and development to the field. Jennie leads a team of consultants, topical specialists, and other experts to meet the governance and strategic needs of the firm’s clients. For nearly a decade, Jennie has been the catalyst for developing countless tools, products, and services, as well as alliances with the firm’s strategic partners. 

The post Aligning Recruitment Efforts With Boardroom Value appeared first on CreditUnions.com.

Although the rule requires federally insured credit unions to adopt and maintain a written succession plan for its CEO, C-suite and its board, its deeper purpose is far more strategic. It signals a shift toward more proactive, competency‑based leadership development across the cooperative system. For boards, this is an opportunity to strengthen governance practices, deepen alignment with organizational strategy, and ensure continuity in a rapidly evolving financial landscape.

To meet both the letter and the spirit of the rule, credit unions can focus on four core objectives that define effective board succession planning.

1. Establish An Ongoing, Fair, Transparent, Competency‑Based, Inclusive

Process. Then Apply It.

Succession planning cannot be a one‑time exercise or yield a document that simply sits on a shelf. It must be a living process — one that is structured, malleable, and grounded in fairness and transparency.

A competency‑based approach ensures that director recruitment and development are tied to the skills and behaviors required for effective governance. When applied consistently, this approach builds trust among board members, reinforces the cooperative values of inclusion and equity, and supports leadership continuity during periods of transition.

2. Curate A Board Aligned With The Credit Union’s Strategic Goals

A high‑performing board is not simply a collection of well‑intentioned volunteers. It is a strategically curated leadership body whose collective skills, characteristics, and attributes align with the credit union’s long‑term direction.

This requires boards to:

• Consciously identify the competencies needed to advance the credit union’s strategy.
• Regularly assess board members’ current strengths and overall gaps on the board.
• Intentionally recruit directors who bring the right mix of expertise, lived experience, and perspective.

By purposefully shaping board composition, credit unions position themselves to navigate emerging risks, identify and then seize strategic growth opportunities, and remain relevant to the members they serve.

3. Build A Learning Culture Through Robust Evaluation And Ongoing Education

The new NCUA rule reinforces what strong boards already practice: learning is not optional for governance excellence.

A culture of continuous learning includes:

• Regular, structured board and individual director evaluations.
• Honest reflection on performance and effectiveness.
• Targeted education that strengthens governance competencies for the board as a whole and for individual directors.
• Opportunities for directors to deepen their understanding of industry trends, regulatory expectations, and strategic issues.

When boards embrace learning as a shared responsibility, they elevate their collective performance and strengthen their ability to guide the credit union through complexity and change.

4. Reinforce Accountability By Addressing Concerns Raised In Assessments

Evaluation without follow‑through is merely an exercise in futility. Effective succession planning requires boards to act on what assessments reveal — whether those insights relate to skill gaps, behavioral concerns, or opportunities for improved collaboration.

Addressing issues directly and constructively requires a culture of accountability. It also ensures that board service remains a meaningful, high‑impact responsibility aligned with the credit union’s mission and member expectations.

The NCUA’s succession planning rule is more than a compliance requirement. It is an invitation for credit unions to strengthen their governance frameworks, invest in leadership continuity, and build boards that are prepared for the future. In short, it can turn what can often be a risk for many into a strategic advantage.

By embracing fair and transparent processes, curating strategically aligned leadership, fostering a culture of learning, and reinforcing accountability, credit unions can turn this regulatory moment into a powerful catalyst for long‑term organizational resilience.

CEO and lead consultant of Quantum Governance, L3C, a Callahan company, Jennie Boden brings more than 30 years of experience in governance, strategy, leadership, and development to the field. Jennie leads a team of consultants, topical specialists, and other experts to meet the governance and strategic needs of the firm’s clients. For nearly a decade, Jennie has been the catalyst for developing countless tools, products, and services, as well as alliances with the firm’s strategic partners. 

The post Preparing For 2026: Why The NCUA’s New Succession Planning Rule Elevates The Strategic Role Of Credit Union Boards appeared first on CreditUnions.com.

Generative AI tools for both member-facing applications and back-office processes are in the hands of employees right now, raising the stakes for governance, compliance, and smart use policies that don’t hinder innovation or competitiveness. That means today’s credit union leaders must balance moving quickly to unlock AI’s value with putting enough governance and guardrails in place to mitigate risk.

Credit unions across Illinois, Indiana, Texas, Washington, and beyond are putting AI to work while building real-world strategies to govern it as they go. Read on to learn about their AI use cases and dive into how they’re approaching governance issues.

Clear, Simple Guidelines

John Sahagian has been with BCU ($6.2B, Vernon Hills, IL) for 25 years. He became the suburban Chicago shop’s vice president and chief data officer in July 2018.

Sahagian says BCU is actively integrating gen AI within existing platforms for departments like HR, marketing, and software development. These tools, often provided through partnerships, enhance efficiency and align with AI roadmaps from trusted vendors.

BUC also has heavily invested in Salesforce and Microsoft platforms, both of which offer powerful generative AI tools within secure frameworks. Additionally, the credit union is providing AI training and resources to ensure employees can work creatively and effectively alongside machine intelligence.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

John Sahagian: Gen AI clearly holds massive potential, but it also brings entirely new risks. Instead of shutting everything down, we chose to embrace the opportunity and quickly rolled out a clear, simple AI acceptable use standard.

This guideline spelled out the do’s and don’ts in plain language and helped people understand the risks involved. Gen AI tools are accessible to everyone. That makes this both a strength and a challenge.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

JS: Our security team has been very proactive in scanning for unauthorized AI usage and even blocking unauthorized AI activity. We don’t do this to discourage AI use, but rather to ensure all tools used have been reviewed.

Furthermore, we make available to all employees permitted gen AI tools that operate inside our security framework and ensure prompts and responses are protected. So, anyone that wants to experiment and use AI absolutely can within the permitted tools.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

JS: As soon as ChatGPT hit the scene, it was apparent these new AI models and tools would be game changers. Our board gave us a dual mandate of, “there’s new risks here, you better be careful,” and “there’s a lot of value here, you better not lose pace!”

We’re fortunate our board members see where this is going and are as enthusiastic about AI progress as they are about AI defense. We provide them with quarterly updates on the progress of our AI roadmap.
Communication is absolutely essential. This thing we’re trying to govern is constantly changing and moving, so it can feel overwhelming to start building policies and standards. A limited few in your organization will likely read through your AI governance standard, but it’s important every employee knows you have one.

Empowered Employees To Leverage AI Responsibly

Tammie Fletcher has been vice president of HR at CEFCU ($8.1B, Peoria, IL) for the past three years. She has been with the central Illinois cooperative since 1989, starting her career in marketing.

Fletcher says CEFCU formed an internal team led by C-level executives to develop AI guidelines and a policy framework that focus on enabling responsible use of gen AI as well as identifying current use cases and paving the way for future capabilities.

The team identified more than 60 AI use cases at the outset, many already embedded in existing software. These range from basic machine learning applications to advanced gen AI functionalities across the credit union. Employees also can use external generative AI tools like Chat GPT and internal tools like Microsoft Copilot Chat.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

Tammie Fletcher: Our cross-functional team created a comprehensive AI policy that defines CEFCU’s approach to responsible AI adoption, explains why we use it, and sets guardrails for development and deployment.

We also launched a generative AI acceptable use policy that sets clear, practical rules for ethical and secure AI usage. Both policies are now official corporate policies, recently approved by the CEFCU board.

We’re finalizing a strategic roadmap under the guidance of our chief officers to ensure sustainable and impactful implementation.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

TF: We conducted a comprehensive survey across departments to identify existing AI applications. Detailed training will be required of all employees to ensure they understand restrictions for using AI and how to leverage tools to enable secure internal use of AI to help with tasks, including document writing, content generation, meeting minutes, data analysis and trends, and more.

There will also be technical restrictions placed on access to unapproved AI applications.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

TF: Our executive leadership has been instrumental in shaping and guiding our AI strategy, ensuring alignment with CEFCU’s mission. They work closely with the AI team they formed to provide ongoing feedback.

We will ensure credit unionwide alignment through ongoing training, transparent communication about AI initiatives, and strong leadership support. AI governance is essential to maintaining our members’ trust and ensuring our use of AI technology remains compliant with regulations, internal policies, and ethical standards while staying aligned with CEFCU’s mission and vision.

Our approach empowers employees to leverage AI responsibly to enhance their work while keeping human judgment and fact-checking in all decision-making processes.

Weekly Recaps For Today And Tomorrow

Doug True began his career with FORUM Credit Union ($2.3B, Fishers, IN) as a management trainee in 1988. He was named the Indianapolis-area credit union’s CEO in November 2011.

True says FORUM Credit Union is applying AI across multiple departments, including indirect lending, where AI helps review auto loan contracts for accuracy and compliance. In commercial services, the credit union uses AI to summarize property appraisals efficiently. In marketing, AI tools generate copy suggestions, whereas the fraud department uses AI to detect patterns relevant to Suspicious Activity Reporting (SAR). Additionally, robotic process automation is streamlining internal audit processes on large data sets.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

Doug True: Our executive team regularly meets to discuss AI, we’ve established a cross-functional team, and we will possibly make a new hire in 2026. This position would help us document governance of AI tools, document usage to avoid duplication of efforts, and ensure we’re leveraging existing tools before purchasing new tools.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

DT: Our technology team has controls in place for the use of AI tools. We’re actively surveying via technology and social engineering.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

DT: Governance is happening among our executive team as well as the cross-functional team across the credit union currently using AI tools. We regularly discuss developments in the AI space at our executive team and board meetings.

We publish a recap each week for our volunteers on what we’re working on at the credit union. This recap often includes how we’re using AI today and how we plan to use it in the future.

AI governance is vital to the protection of member data and intellectual property. We internally develop our internet banking and mobile app platform, so it’s critically important we protect this intellectual property contained in this code set.

Interviews have been edited and condensed.

The post How To Build AI Strategy In Real Time (Part 1) appeared first on CreditUnions.com.

Generative AI tools for both member-facing applications and back-office processes are in the hands of employees right now, raising the stakes for governance, compliance, and smart use policies that don’t hinder innovation or competitiveness. That means today’s credit union leaders must balance moving quickly to unlock AI’s value with putting enough governance and guardrails in place to mitigate risk.

Credit unions across Illinois, Indiana, Texas, Washington, and beyond are putting AI to work while building real-world strategies to govern it as they go. Read on to learn about their AI use cases and dive into how they’re approaching governance issues.

Regular AI Ideation Sessions

Kayvee Kondapalli has been CIO of Greater Texas Federal Credit Union ($957.3M, Austin, TX) for the past six years. He has nearly 25 years of credit union technology experience.

Kondapalli says Greater Texas has begun testing AI applications, including Microsoft and Google chatbots, although nothing is yet live. The credit union has partnered with a vendor to deploy an AI-based website chatbot and a contact center agent to assist members more effectively.

Staff members are already using tools like ChatGPT and Microsoft Copilot to streamline tasks such as document creation, data analysis, and decision-making. The veteran technologist says his shop has also launched ideation sessions with management to identify future use cases and ensure compliance with AI policies.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

Kayvee Kondapalli: We have a set of AI use guidelines. All employees have been trained and must participate in monthly AI courses to keep current with tech changes and our policies. Our senior management team discusses this topic frequently, weighing pros and cons every time a new tool is requested or talked about on the internet.

Greater Texas understands the benefits of AI, yet we’re careful in trusting and adoption. We’ve bolstered content filtering to block generative AI sites except those approved, and requests for access are reviewed by IT leadership, our cybersecurity officer, the CIO, and our technology steering committee as needed before giving the green light.

We regularly evaluate AI use cases in the credit union and financial services industry through reading online articles and participating in virtual and in-person generative AI-specific events. We also hold regular AI ideation sessions with middle management to explore new ways to possibly use the technology.

For example, we currently have a line of business tinkering with developing a chatbot of sorts to aid with a recurring task, and another department is testing an interactive report development tool.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

KK: We are committed to using AI safely and ethically. Employees are thoroughly trained in our AI policies and receive ongoing education about generative AI and which tools are approved for use within the credit union.

We use content filtering monitors to govern the use of approved generative AI tools. And to stay ahead of shadow use, we have regular open discussions within the executive team to explore new ways each department could use AI to improve efficiency.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

KK: As ChatGPT began picking up steam, we saw what was coming and wanted to start leading with education and governance in this area before it became commonplace in the workplace.

Our cybersecurity officer collaborated with the head of marketing and together they developed a set of AI use guidelines. These were presented to the technology steering committee, made up of mostly senior management, including our CEO. These guidelines are now an official part of our employee handbook.

Given the newness, exponential evolution, and rapid adoption of AI, we felt it was critical to be on the leading edge of governing how AI is used in our credit union. AI is almost like the internet is born again, the technology has such a profound impact.

AI As A Strategic Asset

John Orton joined University Federal Credit Union ($4.2B, Austin, TX) as vice president of enterprise risk management in February 2022. There, he oversees the fraud, collections, legal, facilities, and compliance areas.

Orton says UFCU is embedding AI into its digital strategy to become more data-driven and member-focused, using advanced analytics to personalize experiences and generate actionable insights. He says such tools help predict member needs and improve service delivery across all platforms.

UFCU is piloting AI-driven solutions that automate operations, support employee decision-making, and improve service efficiency. An ongoing focus is expanding AI use responsibly through innovation and strategic partnerships.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

John Orton: UFCU is among the early credit unions to formalize an AI policy, reflecting our proactive stance on responsible innovation and data stewardship. We regularly review our internal framework to ensure alignment with industry best practices and regulatory expectations. We designed that framework to guide ethical use of AI in ways that protect member trust and organizational integrity.

We’re advancing our data and AI strategy by building a modern, scalable data platform and fostering a culture of responsible innovation. We strive to empower employees with the tools and training needed to leverage data and AI for personalized member service and operational efficiency.

By automating routine tasks and streamlining processes, our goal is to enable teams to focus on delivering meaningful experiences. Our strategy is guided by continuous improvement, transparency, and a commitment to measurable impact for members and the organization.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

JO: UFCU prioritizes education and clear communication to guide ethical AI adoption. We have controls in place to protect member data and prevent unauthorized sharing, and we are continuously evaluating our governance framework to address emerging risks.

As our AI maturity grows, we plan to enhance our monitoring capabilities to ensure compliance and support responsible innovation across all departments. We’re committed to continuous improvement as the AI landscape evolves.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

JO: UFCU’s senior leadership and board have set a bold vision to use data and AI as strategic assets in our shift to a member-centric, digital-first organization. Their support, along with our cross-functional AI committee, ensures our approach aligns with our mission to deliver personalized, proactive member experiences and empower employees with actionable insights.

AI governance is key to responsible innovation and long-term success. We ensure every initiative aligns with our values, regulatory standards, and ethical commitments. We’re building a culture of data stewardship and continuous learning, equipping employees to use AI tools that automate routine tasks, boost efficiency, and deepen member engagement.

Through education, clear policies, and leadership support, we aim to help teams use data and AI to drive operational excellence and personalized service.

Just Another Technology

Shawn Dunn is vice president of data and analytics at Washington State Employees Credit Union ($5.1B, Olympia, WA). He joined WSECU in June 2024 and has 15 years of experience in credit union business processes and intelligence.

Dunn says AI adoption at WSECU is guided by member service and organizational benefit, with efforts centered on quickly accessing actionable insights. The credit union is enhancing existing platforms and preparing to grow through future vendor collaborations.

Education also is a major priority, with WSECU training staff members on AI tools, use cases, and best practices. According to Dunn, the credit union’s most significant rollout so far is Microsoft Copilot, which is integrating with Office tools to accelerate strategic decision-making through gen AI-driven insights.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

Shawn Dunn: We began with policy, values, and buy-in from the board and senior leadership. In 2024, we formed an AI guidance group made up of leaders from data, IT, and compliance.

One of the group’s first efforts was publishing an organizational AI usage policy with clear guidelines on acceptable use. We also developed communication plans, training opportunities, and a strategy for managing AI technologies.

A key belief we’ve embraced is that AI is just another technology. We already have strong internal processes for evaluating and managing tech, so there’s no need to over-engineer new governance frameworks.

Our top priority now is team readiness. Without it, successful AI adoption will falter. We’ve built a clear communication plan that includes leadership vision, training, and success stories to normalize AI at WSECU and increase our team’s impact.

At the same time, we’re exploring partnerships where AI supports business objectives. Staying focused on tools that truly serve members and staff helps us avoid chasing the next shiny object that doesn’t move us forward.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

SD: Managing sensitive data is foundational in financial services. Our AI acceptable use policy is a great place to start for our team. We’ve also had discussions with leaders across the organization to ensure that we continue to follow established guidelines for onboarding and using new technologies.

I’ve talked to some peers who decided to outright block tools like Copilot altogether, and this is likely inadvertently increasing risk. Your teams know the value of these tools, and if you don’t provide them in a controlled manner, they’ll find ways to use them in a potentially more irresponsible fashion.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

SD: Like any successful initiative, you need buy-in and alignment at the top to gain employee confidence and adoption. WSECU’s senior leaders have been highly engaged since the onset of our AI efforts. In addition to representation on the AI guidance group, senior leadership is integral to communicating the vision of how AI elevates our efforts and improves the member experience.

They’re also sharing their own AI learning journeys, mirroring for the entire staff that we’re all learning together how to use these tools. Everything ties back to our organizational capabilities and those key strategic objectives established in the business plan.

AI governance is not just a compliance exercise; it’s a strategic requirement. I encourage my peers to find governance practices already implemented in their own organizations. There’s no need to create redundant frameworks to manage a new capability like AI. The focus should be on layering in additional considerations within established governance practices, such as how you map, measure, and monitor the impacts of AI-based tools.

Interviews have been edited and condensed.

The post How To Build AI Strategy In Real Time (Part 2) appeared first on CreditUnions.com.

What Skills And Experiences Do Today’s Boards Need?

The “right” board portfolio of skills and experience continues to evolve. As a reference point, 10 boards recently benchmarked the future representation of skills and 71% of those directors said having a grasp of the business applications of artificial intelligence was either critically underrepresented (30%) or underrepresented (41%). These results were as expected as they were invigorating.

In these examples, board development programs and succession plans were revamped and the boards are well on their way to more effectively engaging in strategic prioritization conversations.

How Will CEO Performance Be Evaluated?

Eventually those conversations should translate into effective and measurable outcomes. Boards are increasingly embracing the criticality of rigorous evaluation processes that both hold their CEO accountable (risk and reward) for historic results and provide constructive feedback for future development and prioritization.

Often, when an organization is performing in the bottom 10% of its peer group, a contributing factor is that the board is unaware of their competitive positioning. Sometimes “goals are set” but loosely connected to the strategy and disconnected from the competitive landscape. The reality is that many boards seek to thrive, not survive. The opportunity is to tie CEO evaluation and compensation to those results.

Is Your Succession Plan Strategic?

Succession planning has always been a hot topic, and the NCUA’s final rule has shifted it to the forefront. From a governance standpoint, strategic CEO succession is the most critical and all-encompassing conversation that occurs because it touches on strategy, organizational performance, culture, governance, and compensation.

Beyond the interim and emergency plan, having a meaningful understanding of executive talent and their upside potential years in advance empowers better decisions today that can drastically improve outcomes tomorrow. Too often successors are brought in because rigorously developing the talent that will lead the organization in the future was not important (in practice) to the board or CEO. Attending conferences or receiving certifications is seen as “development” but is not necessarily the stimulus needed to generate an embodied strategic perspective in future CEO candidates.

Are You Developing High-Potential Talent?

Having a succession viability conversation can be very dignifying for aspiring candidates; they want to know what their candidacy does and does not bring to the table in the board’s eyes. Aspiring candidates  want the time to develop missing skills, perspective, and leadership presence. If they’re not given a fighting chance, then there are other downstream effects.

Beyond that, investments are often only made in identified potential CEO successors whereas other high-performing talent without CEO aspirations might not receive the same kind of stretch assignments. The new CEO then inherits a team that is not as competitive as it could be. A critical governance challenge and opportunity is ensuring the organization is developing the talent it needs in the future.

How Will You Ensure Continuous Board Development?

Combining board development, director self-evaluation, and application of new skills is another strategic opportunity. There are a plethora of board development resources available. The critical governance challenge is how to provide a rubric for hungry learners to evaluate their understanding of the content. Further, providing a platform for experiential learning and application of the learning is essential to deeply understand concepts that are full of nuance.

A timely example is artificial intelligence. Understanding of this technology and its application are greatly enhanced by experiencing its power and potential. General presentations can be less impactful than content tailored to a specific institution that includes real-time examples of how AI is impacting operations and member experience. Boards should prioritize these conversations and intermix experiential learnings over periods of time, as the consequential nature of these decisions is significant. Said differently, conferences are conversation starters — they are not certifications of relevant governance expertise.

It’s a safe bet that the future will bring new and different opportunities and challenges. It’s time to recalibrate and evolve the board’s response pattern to ensure governance practices are effectively enabling the strategy, not hampering it. Simply declaring that the board will have an even more vital role in the future can begin to put energy and resources into action.

Peter Myers is senior vice president at DDJ Myers, an ALM First Company. Contact him at pmyers@ddjmyers.com.

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In my time as president and CEO at Everwise Credit Union ($5.4B, South Bend, IN), a key focus of ours has been to mature, to govern better, and to be worthy of the trust our members place in us. We believe a pivotal part of that journey, one that set the stage for what’s to come, was the adoption of board term limits in 2023.

This is just one story of one board’s recent governance maturity journey. I won’t pretend the journey is complete or that we do everything right. But I am proud of the progress the Everwise board is making and inspired by their commitment to continued development.

What we’ve implemented at Everwise is not a one-size-fits-all model, but I do think every credit union CEO and board chair can use our experience to reflect on their own boards, governance challenges, and opportunities.

Adopting term limits was not an easy or quick decision. It took much deep reflection, hard conversations, and a willingness to look in the mirror. Today, it’s a critical driver behind our board’s journey of accountability and growth.

The Debate Behind the Decision

Our governance journey began, as many do, with some big changes.

A few years ago, a long-serving board member who had served on the board for nearly 40 years stepped down and we had a new board chair for the first time in a quarter century. Around that time, I was hired as the credit union’s fifth CEO in 93 years. I was also the first to come from outside the organization. That shift brought a fresh perspective to a traditionally stable, internally led organization.

The new board chair came in committed to bridge from our past to a new high-performance future. Management helped by setting up a governance operations squad to provide stronger support—a small team of people with professional skills, who know about good governance, and who work full time supporting the board’s effort to operate well.

Debates about term limits began in early 2023 with some of the expected objections.

“What if we lose a great director?”

If you’re afraid to lose one person, maybe you don’t have enough strong directors.

“How do we preserve institutional memory?”

If institutional knowledge lives too much in people’s heads, maybe you need better documentation.

“Shouldn’t we just coach underperformers instead?”

Are we actually doing that? If you don’t coach or remove ineffective directors, then term limits are probably necessary.

The board and our leadership team ultimately realized term limits could serve as a “forcing function” for maturity and pipeline development. We settled on five terms of three years, or 15 years total, and no renominations after age 75.

Get Comfortable With Being Uncomfortable

In mid-2023, our board was facing some ongoing difficulties. Although this was uncomfortable, we needed that. Sometimes we should feel uncomfortable — that tension creates urgency and the will to act.

Myself, my board chair, and the chair of the governance committee began to seriously reflect on how Everwise was performing. We had to ask, “How strong are we, really?”

Adopting term limits helped ignite a shift in our mindset. They forced our organization to:

• Plan Ahead — If you know someone’s rotating off the board in three years, you start building a pipeline today.
• Improve Onboarding — You don’t have 15 years to get a new director up to speed. You have one.
• Clarify Expectations — If a director is underperforming, you no longer kick the can. There’s a clear time horizon.
• Distribute Leadership — No one person becomes irreplaceable. Everyone is expected to lead.

In short, term limits require a board to have more structure, intention, and discipline, and that changes how directors engage with one another, with the CEO, and with the organization as a whole.

It is a two-way street, though. A high-functioning, mature board requires more athleticism from the CEO.

Look, we’ve probably all heard a credit union CEO or two remark that they were glad their credit union didn’t have term limits because, “I’ve got my board where I want them.” Although some part of me I’m not proud of might envy a CEO taking it easy, that’s not what’s best for any credit union. It’s better if the CEO has to hustle, to continuously earn that confidence and trust. Every new director needs to rehire me as the right CEO to lead the credit union forward. That’s a feature, not a bug. It means I can’t get complacent. Term limits create higher accountability for the CEO, too.

It’s OK To Ask For Help (Recommended Even)

During this process, one thing became clear: We weren’t going to figure this all out on our own, and we shouldn’t try.

Just as we expect our members to lean on us when making financial decisions, our board needed an outside perspective to challenge assumptions and expand its toolkit.

We joined the National Association of Corporate Directors (NACD), a move that might seem commonplace in the corporate world but is still rare in the credit union space. This made it possible for our directors to access resources, frameworks, and peer conversations that elevated the way they think about board work.

We also brought in a consulting firm to help us take a hard look at our board composition, skills matrix, succession planning, and meeting cadence through the lens of what our organization would need in the next five, 10, or 20 years. Critically, each board director received individualized 360º feedback on their contributions and development opportunities. It was through this partnership that our board developed the roadmap we’ve been following ever since. The board term limits were just one part of that.

Imagine plotting all your board members on a two-by-two matrix. How many great directors do you really have? (illustrative example).

Now imagine improving director accountability and board governance operations such that individual directors improve and to overall board develops (illustrative example).

Don’t Be Scared To Evolve

Everwise is now among a relatively small group of state-chartered credit unions in the United States that both compensates board members and imposes board term limits.

Between 18 and 22 states currently allow board compensation for credit unions, and federal credit unions can’t compensate or impose formal board term limits under current law. But where it’s possible, I think we in the credit union industry should be asking tougher questions. And, the law shouldn’t be an excuse. Mature, excellent governance is mostly about talent and culture. Any board can be great.

None of this is easy. Our board has stumbled. We’ve had hard conversations. Our journey has required growth by management, too. This isn’t a one-size-fits-all solution. There are some other strong CU boards out there. This is simply our case study in progress.

Don’t Stop Here. Did you enjoy these insights? If you did, I encourage you to join the NACD and buy the book “Building Better Boards” for yourself and your chair. Read that book together and discuss.

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Today, putting people before profit isn’t just a belief — it’s a strategy that delivers real results.

GLCU has received numerous awards, including for its workplace culture and community impact. From 2019 to 2024, the Chicagoland credit union grew from $886 million in assets to $1.4 billion. During that time, its year-over-year membership growth jumped from slightly less than 5.0% to nearly 30.0%; as of year-end, the credit union’s membership exceeded 100,000. All this despite a worldwide pandemic and the rise of fintech competition that has changed the face of banking.

Pat Price, GLCU’s board chair, says the credit union continuously meets challenges head-on and comes out stronger for it.

“Our member survey results have gone up, staff engagement has increased, and the industry is paying attention to us,” she says. “We were once an ‘also-ran,’ but now we’re leaders in this mission. People are watching what we’re doing.”

New CEO, New Vision

The financial services landscape looks a lot different today than it did seven years ago. But when Steven Bugg took the helm in 2018, he promised industry changes would not weaken the credit union’s resolve to put members first. Indeed, it was his unwavering commitment that helped Bugg land the role.

“When I joined the organization seven years ago, the board was seeking a new direction,” the CEO says. “My predecessor had successfully expanded the credit union, but the board wanted a leader who could deepen community engagement.”

According to Barbara Castleton, vice president of executive administration, the credit union started communicating with Bugg even before he joined, sharing ideas and knowledge and bringing him up to speed. Castleton joined the GLCU team in 2014 and has worked closely with Bugg since he came on board.

“I just knew we were going to reach new heights under his leadership,” Castleton says. “It is a very different leadership style. I love the energy, the motivation.”
Bugg’s first order of business was to redefine GLCU’s strategic direction.

“When I arrived, the credit union had nearly 300 strategic initiatives, which made it difficult to focus,” Bugg says.

GLCU has culled down that list to five Standards of Greatness that extend beyond traditional product and service metrics and provide a framework to focus day-to-day work. Those focal points are especially important in an organization with more than 250 employees who sometimes have very different responsibilities.

“It’s crazy busy,” Castleton says. “But it’s an organized crazy, so we love that.”

The Standards of Greatness also help GLCU ensure leaders make decisions that consistently align with the credit union’s mission.

“Traditionally, when you set out a strategy or strategic plan in a business, you have either a financial or a growth metric you’re trying to achieve,” says Michael Abraham, chief strategy officer. “We have those, but we also want our employee base to complete 4,000 volunteer hours. A social impact lens drives the strategy so much differently than just making sure we make money next year or grow a certain percentage.”

A Meaningful Merger

Just a few months after Bugg took office, GLCU merged with North Side Community Federal Credit Union, an institution that served underbanked residents in the Chicago area.

“That one action set a whole series of things in motion that led us to this point,” Price says Pat Price, the GLCU board chair.

Although North Side Community was a smaller institution, the single-branch cooperative that served more than 3,000 members had a national reputation for serving those of low-to-modest means and operated a grant-funded, HUD-certified counseling pilot program started by what is now Inclusiv.

“At the time, it was the National Federation of Community Development Credit Unions,” says Sarah Marshall, the former CEO of North Side Community who now serves on GLCU’s board of directors and as a supervisory committee member. “It incubated the program but ultimately decided not to continue it. My credit union was one of the few legacy credit unions that maintained the HUD counseling certification.”

When North Side Community considered merger candidates, Marshall says she was determined to ensure the housing program continued.

“A number of credit unions didn’t understand it or weren’t excited about it,” she says. “Great Lakes was eager to take on the program and scale it, which was a big win.”

The merger also brought to GLCU a foundation North Side Community started several years earlier to support other types of funding. Today, GLCU is one of only five credit unions with a HUD-certified counseling program, and it helped prevent $4 million in home foreclosures last year through the GLCU Foundation for Financial Empowerment.

“It has its own staff and is really developing as its own entity,” Marshall says of the blossoming foundation committed to positive change through financial empowerment.

Ultimately, Marshall says GLCU approached the merger as a partnership, one that allowed North Side Community to scale programs and take authority within the new organization.

“Even though it was the surviving institution, it positioned our staff well, treated us with respect,” she says.

An Agency Of Choice

The merger between GLCU and North Side Community took effect Aug. 1, 2019. Less than a year later, COVID-19 disrupted everything — including financial services. But according to Price, GLCU was quick to take action.

“Leaders tested our continuity plan and got ahead of things instead of waiting and scrambling to react,” the board chair says. “They were very proactive in doing everything necessary to keep our members and staff safe while keeping the business running.”

The pandemic gave GLCU the opportunity to enhance its role as a housing counseling agency, facilitating rental and mortgage assistance with government funds.

“We were not a direct funder to the end user,” Bugg explains. “Instead, we worked with the city and state to distribute assistance and ensure people got the help they needed.”​

The credit union itself received government funding to cover temporary staffing to expand its call center, the salaries and benefits of its HUD counselors, and program marketing costs. Even before it could officially offer assistance to the public, GLCU’s website recorded more than 30,000 visits for grant applications, such was the need in Northern Illinois.

“We were chosen as an agency to help those in Cook County and Chicago who were going to get evicted from their homes,” Bugg said.

In its role, GLCU served as a third party working in collaboration with the borrower and lender, who could opt against foreclosure if a homeowner developed a sustainable budget and made on-time payments. It’s a role the credit union continues to fulfill today.

Although the pandemic disrupted financial services, it also pushed GLCU in a positive direction. The credit union has enhanced virtual services to improve accessibility — a shift that remains a part of its long-term strategy — and has developed a reputation as a go-to agency in Chicago and beyond.

No Slowing Down

In 2025, the Great Lakes team is full steam ahead.

“We’re never just working on what we’re currently working on,” says Castleton, the executive administrator. “We’re always thinking about what’s coming next.”

As head of strategy, Abraham says his top priorities include continuing to identify M&A opportunities that align with GLCU’s goals. Most recently, the credit union purchased a Vibrant Credit Union ($1.1B, Moline, IL) branch located in Danville, IL, a rural area with similar financial challenges as Chicago. In addition to gaining $68 million in assets and approximately 6,586 new members, this expansion will allow GLCU to extend its community giveback programs into Central Illinois and Western Indiana.

Additionally, Great Lakes will continue to find ways to manage interest rate challenges.

“The rising rate environment is catching up with a lot of financial institutions,” Abraham says. “We need to ensure sustainable earnings while keeping our rates competitive for members.”

Both Abraham and Bugg emphasize the need for credit unions to do a better job of communicating their value.

“We need to differentiate ourselves from banks by showcasing the tangible benefits we provide to underserved communities,” Bugg says. “The credit union industry must stay focused on advocacy, especially regarding regulatory changes and potential threats to our tax-exempt status.”

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