But financial readiness doesn’t begin when a young adult applies for a product. It’s built long before that, through years of small decisions, everyday habits, and early experiences with money.

That’s where the gap sits. Many institutions evaluate readiness. Far fewer help build it.

The Relationship Starts Earlier Than You Think

Long before a young adult opens an account, they’re already forming financial habits and opinions about who they trust with their money. By the time a credit union makes its first offer, much of that foundation is already in place.

The institutions winning the next generation aren’t simply targeting 18-year-olds. They’re showing up earlier, during the years when habits and trust are still being shaped.

And if a credit union isn’t part of that process, someone else is. Fintech apps have figured this out, and they’re winning one family at a time.

What Families Are Actually Looking For

Parents aren’t looking for another app. They want practical ways to turn everyday moments into real lessons.

• A 10-year-old saving up for a new game and tracking their progress.
• A 13-year-old learning to split money between spending, saving, and giving.
• A 16-year-old managing their first paycheck with a little guidance alongside them.

These experiences are happening right now, with or without a credit union involved.

That’s exactly the gap Boucoup was built to fill, a family banking platform that helps credit unions build relationships with parents and their kids today and turn them into members for life.

Why This Is A Credit Union Conversation

Credit unions were built to help members, families, and communities make better financial decisions throughout their lives. Family banking is where that mission gets to show up earlier.

When a parent helps their kid save for the first time, that’s financial wellness in action. When a teenager learns to manage a paycheck with guidance, that’s the real-world education credit unions have always believed in. When a family builds a relationship with their credit union before they ever need a loan, that’s community, deepened.

At Boucoup, we call this the Win-Win-Win:

Parents get practical tools to teach financial responsibility at home. Kids and teens build genuine confidence through real money experience. And credit unions get to live their mission during the years it matters most, growing household relationships long before any competitor enters the conversation.

The Window Doesn’t Stay Open Forever

The years between childhood and adulthood are when financial habits take root and trust is decided. The institutions that show up during that window are earning a place in someone’s financial life before anyone else gets the chance.

Every day, families are choosing tools, forming habits, and deciding whom they trust. That process isn’t waiting for anyone.

The credit unions that win the next generation will be the ones that showed up earlier, when habits were forming and trust was still being earned.

Boucoup is a family banking platform built for credit unions, helping institutions reach parents, kids, and teens long before traditional membership begins.

Families are forming financial relationships right now. See how credit unions are using Boucoup to be part of that decision. Request a demo.

The post The Financial Readiness Gap: Credit Unions Evaluate It Every Day. But Who Builds It? appeared first on CreditUnions.com.

We’re a bit unique here at FORUM as we have an internal software development team that creates a variety of solutions at the credit union, including our own internet banking platform and mobile app. Our history is to partner with fintechs when a solution helps us address a member need, fills a gap in our product or delivery suite, or positions us to better serve members now and into the future.

Doug True and FORUM Credit Union ($2.3B, Fishers, IN) were building fintech before the industry had a name for it.

In 1998, 10 years into his tenure at the suburban Indianapolis cooperative, the now longtime CEO led the launch of FORUM Solutions, a CUSO that developed lending and digital banking tools for internal use and credit unions nationwide.

The service organization produced one of the credit union’s most notable innovation: TAPS Lending, a consumer lending platform whose scoring engine and workflow capabilities ultimately helped streamline lending operations for more than 30 credit unions.

FORUM sold the platform to Akcelerant in 2008, and the technology later became part of Temenos. At the same time, FORUM continued developing its own online banking capabilities, creating its own internet banking platform more than 25 years ago while laying the groundwork for a technology strategy that continues today.

FORUM’s early experience as a fintech builder continues to shape its approach to innovation, partnerships, and long-term value creation, balancing in-house development expertise with vendor relationships across today’s fintech ecosystem.

FORUM Solutions looks very different today than it did during the TAPS Lending era. How has the CUSO evolved over the years, and what role does it play in FORUM’s strategy today?

Doug True: We have fond memories of our TAPS Lending days and partnering with like-minded credit unions across the country.

We still internally develop our internet banking platform and mobile app today. We still see components of TAPS Lending in our Temenos solution, and we consider ourselves a power user of the Temenos platform because of the knowledge we have in-house, both lending and software development, of the platform.

We also still use the FORUM Solutions CUSO today — it’s just different business units underneath it. At the present time we have our own wealth advisory service as a registered investment adviser known as FORUM Private Client Group, currently with $440 million in assets under management. Its certified financial planners are all full-time FORUM teammates.

Another business unit under the CUSO is SafisLife, which is our financial coaching service. SafisLife is a $5 per month subscription that provides a personal financial coach and access to a high-yield savings account for emergency savings and a variety of financial planning tools.

We also have FORUM Insurance Services, which is a partnership with Insuritas and offers a full line of home, auto, umbrella, pet, business, and other insurance products and companies.

How are credit unions approaching fintech investment? Future Bets explores how leaders balance immediate needs with longer-term bets, evaluate potential partners, and define success alongside mission and member value. Read the series today.

How does FORUM approach fintech innovation and investment?

DT: We prefer to invest in our internal resources and plug in fintech products or expertise where it best fits our business plan and roadmap.

We’re a bit unique here at FORUM as we have an internal software development team — currently eight teammates — that creates a variety of solutions at the credit union, including our own internet banking platform and mobile app.

Our history is to partner with fintechs when a solution helps us address a member need, fills a gap in our product or delivery suite, or positions us to better serve members now and into the future. We have not pursued personal or collective investments into fintechs with other credit unions or CUSOs.

When choosing what to invest in, how do you balance your day-to-day business needs with longer-term strategic goals?

DT: Pivoting to our desire to partner rather than invest in fintechs, such decisions are a part of our annual business plan and ongoing planning process. It’s often a combination of solving needs and anticipating member demands. With our internal software development team, we also select partnerships where co-development and integration is a step toward mutual success.

What does success look like for a fintech investment? How does purpose play a role in your definition of success?

DT: We often define success by meeting and exceeding specific service level agreements we mutually agree upon with our partners. It’s important for both parties to understand what we’re solving with the partnership and how our members will use the solution. Integration into an overall solution or platform is an important piece for all to understand.

What’s one lesson you’ve learned about bringing along internal teams?

DT: Get the right teammates in the room from the beginning when you’re evaluating a potential partnership with a fintech. Use portal technology to share information and be transparent as to why you are evaluating a potential partnership.

Not everyone can attend each meeting, but sharing information on a portal can drive education and buy-in as to what the credit union is trying to accomplish with the partnership.

What’s one thing you’ve gotten wrong or would do differently if you started over today?

DT: It’s important to be measured in your evaluation of the fintech solution. How does it fit with your product and channel lineup? What will the member experience be like — will it be consistent for your credit union and across all channels? There are often multiple options for connectivity, so how do you integrate the solution so the member experience fits with the credit union brand to drive adoption and solidify trust?

What’s one thing fintechs consistently misunderstand about working with credit unions?

DT: We haven’t really run into any issues in this regard. It’s important for the credit union to tell its story, including the cooperative ownership structure. We enjoy partnering with fintechs and technology companies that use an Employee Stock Ownership Plan — they get cooperatives.

What’s one piece of advice you’d give a fintech about how to partner with credit unions?

DT: Do your homework on the credit union. So much data is available online. Understand why the credit union is exploring a partnership.

This interview has been edited and condensed.

The post The Long Game For Fintech At FORUM Credit Union appeared first on CreditUnions.com.

One of the greatest benefits of having a CUSO active in the fintech space is the access we get to the universe of fintech companies and the solutions they provide, along with some preliminary vetting of those companies, particularly if they’re a CURQL portfolio company. It’s also facilitated networking with other similarly oriented credit unions, allowing us to obtain unsolicited references on a variety of different solutions and companies.

Mission Federal Credit Union ($7.2B, San Diego, CA) doesn’t treat fintech as just another vendor category. Through its CUSO, Mission Federal Services (MFS), it has developed an investment approach that values both financial returns and opportunities to support long-term growth.

Through MFS, Mission Fed invests alongside peers in CURQL Collective, a network of more than 160 credit unions that pools capital and access to emerging fintech companies. That participation has widened the credit union’s visibility into the market while deepening its ties across the industry.

Doug Wright, who became president and CEO in 2024 after serving as chief financial officer, has helped guide that fintech evolution. Ron Araujo, a former Mission Fed CFO and current president of MFS, has also played a leading role in building credit union’s fintech strategy.

This interview has been edited and condensed.

How does Mission Fed approach fintech innovation and investment?

DOUG WRIGHT: Although we’ve maintained a CUSO for many years, we didn’t start using it to invest in fintechs until around 2017. Our first investment was in a startup digital banking platform and app aggregator along with a number of other credit unions.

Unfortunately, that investment has not panned out as we hoped. Subsequently, we invested relatively small amounts into a few additional fintechs before becoming aware of the CURQL funds. These have been our primary fintech investing vehicle since. We’ve made investments in both CURQL I and CURQL II funds, side investments in a few of their portfolio companies, and a few additional fintechs not in their portfolios.

RON ARAUJO: In 2016, Mission Fed decided to more fully use MFS. This initially led us into more traditional lines of business, but we eventually recognized the financial and member service opportunities with direct fintech investing. Mission Fed runs MFS as a holding company CUSO, with each of the investments being subsidiaries. To date, our journey in fintechs is only internal to Mission Fed.

How are credit unions approaching fintech investment? Future Bets explores how leaders balance immediate needs with longer-term bets, evaluate potential partners, and define success alongside mission and member value. Read the series today.

When choosing what to invest in, how do you balance your day-to-day business needs with longer-term strategic goals?

DW: From the credit union’s perspective, one of the greatest benefits of having a CUSO active in the fintech space is the access we get to the universe of fintech companies and the solutions they provide, along with some preliminary vetting of those companies, particularly if they’re a CURQL portfolio company. It’s also facilitated networking with other similarly oriented credit unions, allowing us to obtain unsolicited references on a variety of different solutions and companies.

We don’t require the credit union use the specific solutions of the companies we invest in, even if it’s a service we’re implementing. From the credit union perspective, we continue to look for fintech partners that best meet the needs of our members and Mission Fed.

If one of those partners is also a company we’ve invested in, we view that company more favorably, but it’s not a guarantee. We have several companies where we’ve done both, but we’ve made other investments where we’ve chosen another solution.

RA: For the most part, our fintech investing is based on the potential financial return that the opportunity can provide. Obviously, the main driver of a fintech’s success will be its ability to partner with many credit unions (and others), so we look more broadly at that as one consideration of investing. In some cases, this has led to the fintech partnering with Mission Fed, which generally gives the credit union a strong voice in the fintech’s development.

When those compete, which wins? How do you balance those two imperatives?

DW: From the investment perspective, we choose companies we think will provide a long-term financial benefit. As noted above, the credit union’s choice of solutions is based on our member and organizational needs and influenced by our investments but not driven by them.

What does success look like for a fintech investment? How does purpose play a role in your definition of success?

DW: Fintech investment success is primarily based on the financial return we receive. It’s a bonus if the company also provides a solution we use, particularly if we receive discounted charges. We’re also looking for companies that serve, promote, and advance the credit union industry.

RA: Because MFS does not have a Mission Fed usage mandate, success is measured by the financial return that we can realize. However, an interesting side benefit is the network we’ve developed not only with other fintechs but also with other like-minded credit unions and CUSO investors. MFS has close relationships with many other investors, and this keeps us in the loop on deal flow.

What’s one lesson you’ve learned about bringing along internal teams?

DW: Several years ago, our CUSO was not very connected to our internal credit union teams. We’ve worked hard the past few years to change that, and it’s benefited both our CUSO and the credit union. The close collaboration creates better credit union solutions and better investment selections.

RA: From my perspective as an investor working with Mission Fed, there is a great deal of passion and, more importantly, curiosity around the fintech activities of the CUSO. This is largely due to the fact Mission Fed is on its own technology journey, but it’s also a function of the teams recognizing the potential successes that technology can provide to members.

What’s one thing you’ve gotten wrong or would do differently if you started over today?

DW: I wish there had been a CURQL fund around with professional management when we first started. It’s a better way for credit unions to get their feet wet in fintech investing than to start with individual companies.

RA: MFS now has a robust network of investors and fintechs, but I would have worked much harder to develop those relationships earlier. It’s the collaboration with others that will help us continue to generate success. And nearly everyone is willing to work with you.

What’s one thing fintechs consistently misunderstand about working with credit unions?

DW: The concern I hear most frequently from fintechs is how slow the evaluation, selection, and implementation process can be. Fintech founders want to move quickly, and most credit unions are not built to do so due to internal caution, regulatory requirements, legacy technology, higher priorities, or other reasons.

Credit unions need to think about the founder’s motivations. Many are looking for an exit within a reasonable time period, which often means either selling to a larger company or going public. Both cases can change the nature of the partner relationship significantly, so credit union management needs to ensure they’re comfortable with this.

RA: As Doug already mentioned it’s the “pace of play” issue, with no close second. Fintechs need to understand credit unions are highly regulated industries with a lot of protocol. This is not largely explained to or understood by fintechs that are accustomed to a much faster pace.

On the flip side of this question, one thing credit unions consistently misunderstand about fintechs is that they need feedback to improve their product. Be open and brutally honest with fintechs; believe me, you won’t hurt their feelings.

What’s one piece of advice you’d give a fintech about how to partner with credit unions?

DW: Spend time building relationships, learning, responding, and adapting your solutions to multiple credit unions’ needs and pain points, and ensure your solutions can address those needs profitably.

RA: I explain to my fintech partners that credit unions are not competitors with one another; we share a lot about our business. So, if they’re pitching a credit union that maybe doesn’t need their product at this time, they should keep that relationship alive as it can be one of the best sources of leads.

Again, on the flip side, the most important advice for credit unions is that investing in the fintech space is not a passive investment. Your greatest success will come from being actively engaged with these startups every step of the way.

Interviews have been edited and condensed.

The post Mission Fed Weighs Fintech Returns Against Real-World Fit appeared first on CreditUnions.com.

Strategic value doesn’t justify overpaying. If anything, strategic investors should demand better terms than financial investors because we bring more than capital. We bring scale, validation, distribution, and product insight. When we let fintechs treat us as just another check, we underprice our own value.

Credit unions of all sizes and stripes have long invested in fintech and other ventures through CUSOs, venture funds, and other structures. The savviest of these member-owned financial cooperatives use these investments to improve member experiences, strengthen operations, and shape the future of financial services.

The result is credit union fintech investment strategy approach that is grounded in mission as much as market opportunity. Ben Lemoine, CFO at Suncoast Credit Union ($20.5B, Tampa, FL) and board treasurer of Suncoast LaunchPoint Ventures (SLV), shares how the team evaluates opportunities and measures results in its approach to fintech investments and other partnerships.

How does Suncoast Credit Union approach fintech innovation and investment?

Ben Lemoine: SLV is our innovation and diversification platform. It’s Suncoast’s wholly owned, CUSO-holding company for our subsidiary businesses, partially owned ventures, and fintech investments.

Our role is to deploy capital intelligently. Sometimes that means building, sometimes acquiring, and sometimes investing alongside other strategic partners.

Through SLV we identify, acquire, and manage business ventures that align with the credit union’s mission and generate member value.

Our current SLV portfolio includes wholly owned independent businesses — including an insurance agency, title company, and realty company that have served members for decades; a growing fintech investment portfolio focused on technologies that enhance member engagement, payment experiences, financial wellness, and operational efficiency; and new investment and acquisition opportunities across insurance, real estate, lending, and technology.

We approach fintech innovation with discipline. The best partnerships happen when timing and fit align.

How are credit unions approaching fintech investment? Future Bets explores how leaders balance immediate needs with longer-term bets, evaluate potential partners, and define success alongside mission and member value. Read the series today.

When choosing what to invest in, how do you balance your day-to-day business needs with longer-term strategic goals?

BL: In general, we love for SLV to invest in businesses the credit union will onboard as a service and create that alignment. Both pain-point investments and strategic bets have a place in our portfolio, and we deliberately balance the two. We’ve structured SLV to give us flexibility to pursue both.

For near-term priorities such as fraud, lending efficiency, onboarding, and member engagement, we’re often better served through vendor relationships or partnerships rather than equity investments. Vendor relationships offer clear ROI, defined SLAs, and exit flexibility. Equity investments commit us to a longer journey with less certainty.

For strategic bets, we look for opportunities where our scale — more than 1 million members and a strong Florida presence — makes us a valuable partner beyond the capital we contribute. When we invest, we’re committing to deploying, validating, and helping to shape the product.

When the two compete, strategic fit and timing tend to win over urgency. We’ve passed on investing opportunities that solved real, near-term problems because the structure, valuation, or timing didn’t work. We’d rather solve a near-term problem through a vendor and invest strategically when the right opportunity emerges.

What does success look like for a fintech investment? How does purpose play a role in your definition of success?

BL: Success for us is multi-dimensional, and it absolutely differs from a typical vendor relationship. For fintech investments, success requires three things to align. First, strategic value. Did the partnership create capabilities, insights, or member experiences we couldn’t have built or bought alone? Second, mission alignment. Did the investment ultimately serve members and the credit union movement or just produce financial returns for the institution? Third, financial return. Did our capital generate appropriate risk-adjusted returns, recognizing this is venture-style risk?

Purpose plays a significant role. An investment that produces strong returns but doesn’t benefit members or the credit union ecosystem would be a hollow success. An investment that improves member outcomes can still be a meaningful win even if the returns are modest.

We measure success through a balance of financial metrics (IRR and dividends), strategic metrics (capabilities gained, member adoption, network effects), and mission metrics (impact on the broader credit union community).

What’s one lesson you’ve learned about bringing along internal teams?

BL: Don’t underestimate the operational bandwidth required to evaluate, integrate, and benefit from a fintech investment.

It’s easy for executives to get excited about an investment opportunity, but execution depends on teams who already have full plates. If an investment requires technology integration, deployment, compliance review, and member experience design, and your teams are deep in other initiatives, the investment becomes a source of frustration rather than value.

Before committing capital, we ask whether we have the bandwidth to deploy it and capture value. If not, we should delay the investment, scope down our involvement, or pass entirely.

When we do commit, we align internal teams early. Investments work best when the people who will ultimately use, integrate, or evaluate the technology have a voice in the decision, not just executive leadership.

What’s one thing you’ve gotten wrong or would do differently if you started over today?

BL: Discipline on valuation, particularly for strategic investments. Early on, there’s a tendency to view strategic investments differently from financial ones, to say, “This is strategic, so we don’t need to be as disciplined on valuation.” That’s a mistake.

Strategic value doesn’t justify overpaying. If anything, strategic investors should demand better terms than financial investors because we bring more than capital. We bring scale, validation, distribution, and product insight. When we let fintechs treat us as just another check, we underprice our own value.

We approach every investment with the same valuation discipline regardless of strategic narrative. If the valuation is too rich, we might walk away. Strategic partnerships should reflect what each party brings.

What’s one thing fintechs consistently misunderstand about working with credit unions?

BL: Credit unions are not just smaller banks, and we don’t make decisions on the same timelines or for the same reasons.

Fintechs often approach credit unions with a bank sales playbook: heavy emphasis on technology features, competitive positioning against incumbents, and pressure to close quickly. That misses what actually drives credit union decisions.

We’re member-owned, mission-driven institutions. Decisions are made through committees and boards composed of members and community representatives, not just executives optimizing for shareholder returns. We often move more slowly than fintechs would prefer because we’re focused on serving members well.

We also operate in a regulated environment with NCUA oversight. Compliance, privacy, and risk management are foundational. Fintechs that treat regulatory requirements as obstacles rather than design constraints will struggle to scale in our market.

The best fintech partners understand this and design their go-to-market accordingly. They engage early, build relationships before they need them, and respect the governance processes required to make sound institutional decisions.

What’s one piece of advice you’d give a fintech about how to partner with credit unions?

BL: Build for the long term, not to close the sale.

The fintechs that succeed treat partnership as the beginning of a relationship, not the end of a sales cycle. They understand how credit unions operate, account for the work required to implement new solutions, and help solve problems even when there’s no immediate revenue in it for them.

Aside from that, lead with member value, not technology features. We don’t get excited about AI or platform architecture. We get excited about how you help our members live better financial lives. Translate your value proposition accordingly.

Be transparent about your business model and financials. Credit unions evaluate partners based on long-term stability, not just innovation. If you’re growing fast but burning cash, explain your path. We can’t make good partnership decisions without understanding your trajectory.

Finally, engage the credit union ecosystem, not just individual institutions. The credit union movement is collaborative by nature. Build relationships through CUSOs, peer networks, and industry organizations.

This interview has been edited and condensed.

The post Fintech Grounded In Mission As Much As Market Opportunity appeared first on CreditUnions.com.

If the fintech has what appears to be a novel idea, we’ll bring it back to WSECU for consideration. We’re often surprised by ideas we hadn’t considered yet, meaning we didn’t realize a pain point even existed until we investigated it further.

Washington State Employees Credit Union ($5.1B, Olympia, WA) began its venture into fintech investing in classic financial cooperative fashion: standing up a new way for members to access responsibly priced and managed short-term loans.

Now the Evergreen State institution has evolved from building and operating its own CUSOs —  including the payday-loan alternative pioneer QCash Financial and a mortgage origination and servicing company — to investing through a dedicated CUSO holding company that backs innovative ventures focused on helping credit unions solve member and operational challenges.

Paul Kirkbride, chief operating officer for WSECU and CEO of its CUSO holding company, One Washington Financial (OWF), shares how the organization approaches fintech investment and partnership.

How does WSECU approach fintech innovation and investment?

Paul Kirkbride: WSECU got started in the CUSO/fintech space with QCash Financial, which offered a payday loan alternative product for credit unions. The solution started as a loan product built specifically for WSECU’s members, but we soon expanded it to dozens of other credit unions through a CUSO. We also owned a mortgage origination/servicing CUSO for several years.

We exited both of those in 2023 and stood up OWF our holding company, to make investments in CUSOs that solve credit union pain points in new and innovative ways.

How are credit unions approaching fintech investment? Future Bets explores how leaders balance immediate needs with longer-term bets, evaluate potential partners, and define success alongside mission and member value. Read the series today.

When choosing what to invest in, how do you balance your day-to-day business needs with longer-term strategic goals?

PK: Technically, OWF’s main charge is to extend WSECU’s current strategies through our CUSO investments, but we go beyond that now given today’s rapid pace of change and fluid expectations.

If the fintech has what appears to be a novel idea, we’ll bring it back to WSECU for consideration. We’re often surprised by ideas we hadn’t considered yet, meaning we didn’t realize a pain point even existed until we investigated it further.

We haven’t struggled finding a balance between “run the business” and “future bets,” and having a good balance helps to diversify our risk.

What does success look like for a fintech investment? How does purpose play a role in your definition of success?

PK: Success means you’re solving a credit union or member pain point — current or future — and the CUSO can achieve a strong financial return when compared to alternative investments. We’d call this direct value. We also look for indirect or intangible value, such as improved service scores, efficiency gains, new connections, and influence over product design.

Being a design partner is probably one of the greatest advantages to being a CUSO investor. We always seek win-win partnerships with our vendors, but being an owner gives us a chance to create added value for all parties.

Purpose is deeply important to us. We want to work with partners who are committed to working with credit unions and their members and align to our values and our industry’s values. It drives our decision-making.

What’s one lesson you’ve learned about bringing along internal teams?

PK: I could write an entire paper on this question. At a credit union, executable innovation can’t happen in a silo. You need the rest of the organization aligned to assess, approve, test, train, and launch all the great ideas you generate or discover. You also need the credit union’s leadership team, at all levels, supporting your efforts versus believing you’re competing with them for the same resources.

To help with this, we leverage the talent inside of the credit union from the start. For example, if OWF meets with a CUSO that’s solving a lending problem, we bring in our lenders. Do they think this product solves an industry problem? Will they use the product or service as a client? Does the pricing make sense? Will they champion its implementation?

It’s fun to see their faces light up over a solution that solves a real issue, and it’s also telling when they seem completely disinterested. OWF never forces a solution on WSECU. The team that owns that specific product or service lane always has the final say.

What’s one thing you’ve gotten wrong or would do differently if you started over today?

PK: Finding a way to reduce the duplication of investment due diligence and vendor onboarding requirements. Although WSECU wholly owns OWF, OWF must operate independently when it comes to decision-making, so we created our own investment due diligence process.

Throughout the review process, we’re gathering many of the same things the credit union will likely need to gather later. At first, we didn’t have a process to share that information, so our CUSOs were getting hit up with duplicate requests — first from OWF as an investor and then WSECU as a client. We wasted a lot of time.

The other thing I’d add is the need for dedicated resources, which we didn’t add until year two. If you’re hoping you can tap one of your current executives to do all this, in addition to their day job, you might be overestimating their capacity or underestimating the work. We currently have two full-time employees at OWF and are now adding a third.

Without this team, which includes Scott Daukas, our chief partnership officer, and Amy Schultz, our director of fintech engagement, I don’t think we would have made much progress. Their backgrounds — Scott having been a former credit union executive and CUSO board member and Amy having been a fintech founder — are complementary and give us added confidence in our decision-making, relationship-building, risk-taking, and performance-monitoring.

What’s one thing fintechs consistently misunderstand about working with credit unions?

PK: Credit unions can be quite slow at making decisions, working through contracts, and implementing new solutions. Some of this is risk aversion, some relates to being overloaded — trying to do too much — and some of this is simply a prioritization issue. Long sales cycles, followed by long implementations.

Founders, on the other hand, are accustomed to a faster pace, with rapid decision-making, higher risk tolerances, and fewer distractions. So, when just starting out in our industry, they’re often surprised and frustrated by what they encounter.

And if they need to show traction quickly — signed clients and revenue — that pressure can be rough on them, and in turn, they might begin to pressure the credit union to move faster. That rarely helps the situation, and it can damage the relationship.

Of course, credit unions do need to move faster — we’ve invested heavily in doing that at WSECU — but founders also need to understand credit unions are highly regulated, with lots of moving parts and several concurrent priorities. Both sides need to be realistic from day one about timelines.

By the way, credit unions often misunderstand fintechs, too. When I asked Scott for his thoughts on this, he said, “Credit unions need to have strategies, systems, and frameworks in place long before engaging with a fintech, as the absence of a fintech strategy and related preparation can lead to paralysis when a decision is actually needed.”

What’s one piece of advice you’d give a fintech about how to partner with credit unions?

PK: Be authentic, put your motivations on the table right away, and always start with your “why.” There’s a reason you do what do, and we’re investing in people as much as we’re investing in a solution. Oh, and be realistic with your projections.

This interview has been edited and condensed.

Solving the right problems requires the right strategic tools. The credit unions best positioned to act on fintech opportunity are the ones whose leadership teams share a common language for evaluating change. Disruptive Strategy for Organizations, offered by Callahan in collaboration with Harvard Business School Online, gives your team that shared framework. Learn more today.

The post WSECU Invests In Innovation To Solve Pain Points appeared first on CreditUnions.com.

It isn’t an either/or decision between solving today’s challenges and making longer-term bets. The strongest opportunities do both. We look for investments that can address immediate priorities, such as reducing fraud or improving the member experience, while also aligning with the broader strategic direction of the organization.

It’s fitting that the world’s largest university-based credit union is also a front-runner in fintech incubation and innovation. That’s the reputation Michigan State University FCU ($8.5B, East Lansing, MI) has built through The Lab at MSUFCU and its wholly owned CUSO Reseda Group.

The service organization partners with cutting-edge fintech solutions to develop an array of apps and products that include financial literacy and planning tools, sophisticated communication platforms that connect credit unions and their members, digital marketing solutions, and more.

Sara Dolan, CFO of both MSUFCU and Reseda Group, and Benjamin Maxim, the credit union’s chief technology officer, share how the organization approaches fintech investing, development, and partnerships.

How does MSUFCU approach fintech innovation and investment?

Sara Dolan: We formally launched our fintech investment efforts in 2021 with the creation of Reseda Group. Prior to that, the credit union had established an innovation team to support this work.

Ben Maxim: MSUFCU’s fintech journey began in the early 2000s with a focus on digital service, starting with a member-centric website and evolving into internally built online banking and mobile apps.

Over time, the approach shifted from primarily building in-house to partnering more intentionally with providers like Visa and Jack Henry, using those relationships to test and innovate. The Lab at MSUFCU formalized how we evaluate and pilot fintech solutions.

As those partnerships matured, many fintech companies required funding to scale, which led to the creation of Reseda Group.

Reseda was designed with a dual purpose: bring MSUFCU-built technology to market and invest in fintech partners. This model also supported diversification ahead of anticipated revenue changes tied to asset growth.

How are credit unions approaching fintech investment? Future Bets explores how leaders balance immediate needs with longer-term bets, evaluate potential partners, and define success alongside mission and member value. Read the series today.

When choosing what to invest in, how do you balance your day-to-day business needs with longer-term strategic goals?

SD: It isn’t an either/or decision between solving today’s challenges and making longer-term bets. The strongest opportunities do both. We look for investments that can address immediate priorities, such as reducing fraud or improving the member experience, while also aligning with the broader strategic direction of the organization.

BM: We built Reseda around a simple idea: we only invest in solutions we plan to use at MSUFCU. We’re not looking to make purely financial or speculative bets. We focus on partners that are directly relevant to our business and our members.

We start by partnering, not investing. Through The Lab at MSUFCU, we pilot solutions and scale what works. Continued investment depends on operational performance and adoption.

We also take an active role by holding board seats and working closely with these companies. That allows us to help shape their roadmaps and build solutions that are more practical and aligned with what our members actually need.

What does success look like for a fintech investment? How does purpose play a role in your definition of success?

SD: For us, progress is a strong indicator of success. Because we invest in solutions we actually use, success is not abstract. It shows up in how those products perform in our day-to-day operations.

We evaluate fintech partners much like any vendor: are they solving the problem and delivering the service and reliability we expect?

Where it differs is the level of engagement and alignment. With investment partners, we have a deeper role in shaping direction and success also includes their ability to grow, scale, and deliver value more broadly over time.

Financial return matters but is not the primary measure. We look at operational impact, member experience, and how well the solution advances our broader strategy. Purpose plays a key role in that. The partners we choose need to align with how we serve our members, not just what they can deliver financially.

BM: Financial return is a positive outcome, but it doesn’t drive decisions.

We focus on the value the solution brings to MSUFCU. That could be usage, contract savings, intercompany revenue, or overall impact on our members. Those things matter more to us than financial upside.

Mission alignment is also a big part of it. We want to make sure we’re investing in solutions that fit how we serve our members and where we’re going as an organization. In most cases, by the time we invest, we’ve already been a client and seen some level of traction.

If something isn’t working, we’ll step back and determine whether to adjust or unwind it. Generally, our goal is to help these companies succeed because when they do well, it directly benefits our members and the credit union.

What’s one lesson you’ve learned about bringing along internal teams?

SD: Our process has matured quite a bit over the past five years. We’ve learned to ask better questions and run stronger pilots.

BM: You can’t treat this as a side project. We’ve tried that and it only goes so far. There’s a level of commitment and focus required if you want to do this well.

At the same time, not every internal team is set up to operate in a startup fintech environment. The pace is different, the expectations are different, and even due diligence needs to reflect how early-stage companies actually operate.

Part of what we learned is that you have to be intentional about how you bring teams along. Creating Reseda as a separate structure allowed us to put the right mindset and operating model around this work so we could move faster and think more entrepreneurially without forcing that approach across the credit union.

What’s one thing you’ve gotten wrong or would do differently if you started over today?

SD: Financial services continue to evolve rapidly, creating new opportunities to serve members. If we were starting over, we would continue to focus on balancing member needs with disciplined investment decisions.

BM: I think we would be much more disciplined early on about what we chose to pursue. In the beginning, there was so much interest and so many opportunities coming our way that it was easy to say yes to too many things.

We learned not everything that looks interesting or promising fits where we need to go. Today, we spend more time making sure opportunities are aligned to our roadmap and that we have the capacity to make them successful.

What’s one thing fintechs consistently misunderstand about working with credit unions?

SD: The level of regulatory expectations and documentation required to work with a credit union. There’s a lot that goes into ensuring compliance, and it can be more complex than they initially expect.

At MSUFCU and Reseda, we try to help bridge that gap by sharing those expectations early and supporting fintechs as they navigate the process. Setting expectations early creates a stronger partnership and better long-term outcomes.

BM: How mission-driven credit unions are. A lot of fintechs come in thinking about growth, exits, and financial returns. That matters, but we’re looking for solutions that are going to be here and support our members over the long term. We’re not trying to implement something and then replace it a couple years later.

Another piece is the sales cycle. There’s often an assumption that it will move quickly, but credit unions take time. There’s a lot of diligence, a lot of alignment, and we’re going to ask a lot of questions before we move forward.

From the outside, that can feel slow. But from our perspective, it’s about making sure we get it right for our members and that we’re bringing in partners we can rely on.

What’s one piece of advice you’d give a fintech about how to partner with credit unions?

BM: Be thoughtful about how you engage and where you spend your time. Credit unions can take a while to make decisions, so it’s important to make sure you are working with people who have the ability to move something forward. If you’re not getting that signal, it’s OK to pause and come back later rather than overinvesting in a sales cycle that might not go anywhere.

Things like data, cost of acquisition, or even how value is measured can vary, and that can make it harder to tell your story if you’re expecting clean inputs.

The most effective fintechs adjust to that and speak to a few different perspectives at the same time. You’re usually addressing three mindsets: a finance lens around value and return, a member experience lens around how this improves service, and a technology lens around how it integrates and operates. Connecting across all three increases traction.

SD: Do your homework and take the time to understand your audience. That means learning how credit unions operate, including the regulatory environment, and being clear on how your product fits within those expectations.

When fintechs come in with that foundation, it makes the conversation much more productive and builds trust early on. It shows you’re serious about partnership, not just about making a sale.

Building a fintech strategy that lasts takes more than good instincts. MSUFCU’s structured, purpose-aligned investment model reflects the clear-eyed thinking Disruptive Strategy for Organizations develops. Offered by Callahan in collaboration with Harvard Business School Online, this executive team learning program gives leaders a shared framework for turning disruption into competitive advantage. Learn more today.

The post How MSUFCU Builds And Backs Fintech Solutions appeared first on CreditUnions.com.

We’re very aware we’re making these VC investments with our members’ deposits. If we can’t get a meaningful return, then the risk isn’t worth it. This means we have to do a lot more diligence on the company’s operating practices, tracking sales targets and attainment, and helping drive the company’s credit union industry strategy for success.

Service Federal Credit Union ($6.6B, Portsmouth, NH) has long served a membership that spans time zones and territories — from New England to Germany and beyond. That footprint, rooted in the credit union’s origins as Portsmouth Air Force Base Credit Union in 1957, has pushed it to invest early and often in digital capabilities that can keep pace with a far-flung field of members.

Through Service Ventures, its fintech holding company, the cooperative looks to back tools and partners that strengthen both operations and the bottom line.

Brian Regan, general partner of Service Ventures, shares how that approach takes shape in practice.

How does Service Credit Union approach fintech innovation and investment?

Brian Regan: Service Credit Union, specifically our CEO David Araujo, has a long history of working with fintech startups in the credit union industry. David was an early partner to names like Posh and Sandbox Banking.

When David and I started talking about a CUSO investment opportunity almost two years ago, his goal was to use investments in fintech companies to drive the strategy of Service forward: efficiency, best-in-class member experience, and opportunities for financial returns to fuel growth and returns for our members.

That’s where the idea of Service Ventures came from. The holding company was started to separate the financial aspects of running a venture capital fund from day-to-day operations of the credit union. To date, we’ve invested in eight early-stage CUSOs.

How are credit unions approaching fintech investment? Future Bets explores how leaders balance immediate needs with longer-term bets, evaluate potential partners, and define success alongside mission and member value. Read the series today.

When choosing what to invest in, how do you balance your day-to-day business needs with longer-term strategic goals?

BR: Service Ventures’ primary goal is to expedite the execution of Service’s strategy. This means internal buy-in to the solutions we invest in is a requirement. This buy-in can be around a current pain point like lending growth, fraud, and card services, or it can be around a future business need we see coming, such as blockchain for operational efficiency.

I don’t see any competition between these two points — we spent the majority of our first fund solving critical needs of the business. Now that a lot of those are in progress, we’re starting to shift focus to longer-term roadmap items we think are coming in the next five to 10 years. But we’re also constantly looking at internal operations and meeting with companies that solve current pain points.

Our internal C-suite is the Service Ventures board. This team helps prioritize business areas where we need to identify solutions. This partnership is critical for the business to be aligned on the fund’s direction and for me to know what types of problems need innovative solutions. Without strong internal support, this initiative would provide minimal value.

What does success look like for a fintech investment? How does purpose play a role in your definition of success?

BR: We measure success across a few different vectors of value. We look at internal efficiency and income generation — how is this partnership driving value to the credit union by solving critical problems? That could mean reducing the cost to acquire loans, increasing interchange income, or lower expenses by reducing fraud.

We also look at the direct value to membership — how is a solution providing value to our members? For example, ScribeUp is a subscription manager that helps members discover and cut unnecessary recurring charges.

And then there’s asset investment, where we measure the success of the company through a traditional asset lens.

The biggest difference between investment partners and normal vendor relationships is that Service Ventures’ goal is to make money through our investments, so this is a sustainable practice that drives meaningful returns on risky venture capital investments.

We’re very aware we’re making these VC investments with our members’ deposits. If we can’t get a meaningful return, then the risk isn’t worth it. This means we have to do a lot more diligence on the company’s operating practices, tracking sales targets and attainment, and helping drive the company’s credit union industry strategy for success.

What’s one lesson you’ve learned about bringing along internal teams?

BR: Everyone’s roadmap is full. Everyone is resource constrained. The best thing to do is to work with internal teams and portfolio companies to minimize the work to prove the value of a relationship.

How do you get started without an integration? Without marketing emails or member communications? Can we get feedback from members before doing any planned work? These steps seem simple, but I’m always trying to find ways to prove the value of a relationship before disrupting the roadmap.

What’s one thing you’ve gotten wrong or would do differently if you started over today?

BR: Playing off the last question, it’s not focusing on the time to value. If an investment takes X months of planned work before presenting value, that’s a big risk to the organization.

Partnering with the business to make sure “perfect” doesn’t get in the way of quick business value is a critical step we didn’t push on early enough. That’s important for Service Ventures’ investment but equally so for early-stage companies trying to find product market fit.

What’s one thing fintechs consistently misunderstand about working with credit unions?

BR: Credit unions are a collaborative group. If your company can solve a tier 1 credit union problem and prove the business value with a handful of customers, there is a high virality factor within the industry. Stay incredibly focused on the first two to three clients, prove value quickly, and the business case will drive substantial growth.

What’s one piece of advice you’d give a fintech about how to partner with credit unions?

BR: Do your research on the industry, the operating metrics, and the differences between banks and credit unions before putting together a credit union strategy. For example, understanding that the majority of credit unions have less than $250 million in assets, how does that change your sales strategy?

Strategic transformation is a team sport. Service Credit Union’s investment model works because leadership is aligned around a shared framework for evaluating risk and building for the long term. Disruptive Strategy for Organizations, offered by Callahan in collaboration with Harvard Business School Online, equips executive teams with the tools to do exactly that. Learn more today.

The post How A Holding Company Helps Service Credit Union Win At Fintech appeared first on CreditUnions.com.

It isn’t an either/or decision between solving today’s challenges and making longer-term bets. The strongest opportunities do both. We look for investments that can address immediate priorities, such as reducing fraud or improving the member experience, while also aligning with the broader strategic direction of the organization.

Sara Dolan, CFO, Michigan State University FCU

READ MORE FROM MSUFCU

We’re very aware we’re making these VC investments with our members’ deposits. If we can’t get a meaningful return, then the risk isn’t worth it. This means we have to do a lot more diligence on the company’s operating practices, tracking sales targets and attainment, and helping drive the company’s credit union industry strategy for success.

Brian Regan, General Partner, Service Ventures

READ MORE FROM SERVICE CREDIT UNION

If the fintech has what appears to be a novel idea, we’ll bring it back to WSECU for consideration. We’re often surprised by ideas we hadn’t considered yet, meaning we didn’t realize a pain point even existed until we investigated it further.

Paul Kirkbride, COO, Washington State Employees Credit Union

READ MORE FROM WSECU

Strategic value doesn't justify overpaying. If anything, strategic investors should demand better terms than financial investors because we bring more than capital. We bring scale, validation, distribution, and product insight. When we let fintechs treat us as just another check, we underprice our own value.

Ben Lemoine, CFO, Suncoast Credit Union

READ MORE FROM Suncoast CREDIT UNION

One of the greatest benefits of having a CUSO active in the fintech space is the access we get to the universe of fintech companies and the solutions they provide, along with some preliminary vetting of those companies, particularly if they're a CURQL portfolio company. It's also facilitated networking with other similarly oriented credit unions, allowing us to obtain unsolicited references on a variety of different solutions and companies.

Doug Wright, President & CEO, Mission FCU

READ MORE FROM MISSION FCU

We’re a bit unique here at FORUM as we have an internal software development team that creates a variety of solutions at the credit union, including our own internet banking platform and mobile app. Our history is to partner with fintechs when a solution helps us address a member need, fills a gap in our product or delivery suite, or positions us to better serve members now and into the future.

Doug True, President & CEO, FORUM Credit Union

READ MORE FROM FORUM CREDIT UNION

The post Future Bets From Today’s Credit Unions appeared first on CreditUnions.com.

Member finances are under serious pressure. Persistent inflation, high fuel costs, eroding insurance subsidies, and a slew of other economic stressors are making life harder for Americans. Across the income spectrum, members need their credit unions to help them protect what they have and reach their goals.

To meet this moment, credit unions need a shared language and framework. Right now, there isn’t one. Conversations tend to focus on two familiar terms: financial literacy and financial health.

Both matter. Neither tells the whole story. And neither covers the available gamut of options to serve members.

Knowledge Is Necessary, But It’s Not Sufficient

Financial literacy is what people know about how money works — compound interest, the true cost of easy credit, the basics of budgeting. That knowledge is genuinely empowering. It can help members avoid traps and plan for the future, but it can’t change facts.

Financial literacy is not a magic wand for overcoming past mistakes or tackling new calamities. It offers limited help to those without the basic financial health to act on it.

Financial Health Is About Means, Not Just Habits

Financial health is simpler to define: Do you have enough?

Can a member cover food, shelter, healthcare, transportation, and the basics of modern life? Can they live within their means? Do they have slack to pay bills in full and on time? Is their debt manageable? Do they have anything left over at the end of the month?

Without basic financial health, true financial resilience is out of reach.

Don’t stop here. Financial wellbeing isn’t about budgets or education; it’s about trust, confidence, and a sense of control. Read more in “Financial Wellbeing Isn’t What You Think It Is.” Read more today.

Resilience Is Where It Gets Real

Financial resilience is the ability to withstand financial shock or strain.

Do members have emergency savings to absorb an unexpected car repair or plumber’s bill? What about something more serious, like a job loss or a medical crisis?

Most Americans have some degree of resilience, but it’s thin. And even households with the recommended six months of reserves are under real pressure. When gas prices jump 40%, meat prices climb nearly 20%, and insurance premiums spike, those reserves can erode fast.

Credit unions have tools to help, but in this environment, tools alone aren’t always enough. The leaders Callahan sees making a real difference are thinking outside the box in a couple of ways.

Building Financial Access

Credit unions are not-for-profit, but they’re not a charity. Luckily, financial access isn’t about goodwill alone. Financial access is a purpose-led, sustainable business practice.

Here are three examples of how a credit union might do well while also doing good:

1. 1. Form partnerships with local businesses to provide affordable access to critical resources, like working with local car dealers to finance efficient, reliable transportation so people can get to work and keep their jobs.
   2. Build support for small-business ecosystems that create resilient local networks and provide member business lending opportunities.
   3. Deliver essential financial services, like check-cashing, bill payment, and basic transaction accounts, on a risk-managed, profitable basis.

Of course, there are numerous other paths as well. If your credit union is pursuing anything like this, Callahan & Associates wants to hear from you. If you have a story to tell about the impact your team has had on a member’s life, please share it through our Member Story Project. In fact, feel free to share more than one.

Building Emotional Connections

Financial health and financial wellbeing are not the same thing. People who are truly thriving have both means and a sense of security that comes from confidence about the future. For most people, the key piece of this puzzle is a financial partner who cares about them. A partner who anticipates their needs, who always has their back, and who they can trust completely. Credit unions that prioritize emotional engagement can be that partner.

In our work with Gallup leading the Member Engagement & Financial Wellbeing Consortium, Callahan helps credit unions build and measure exactly these kinds of relationships. The data is clear: members who are emotionally engaged with their credit union enjoy measurably better financial wellbeing than bank customers and even than other credit union members who lack that depth of connection.

Credit unions care about the people they serve; but caring isn’t enough on its own. Members need to feel that care consistently and concretely, through every interaction. In times like these, emotional connection can matter even more than financial management tools, competitive rates, and great service. That might sound squishy. The data says it’s real.

Financial wellbeing builds over moments. When credit unions make it easier for members to improve their financial position — whether through smarter payment tools or clearer guidance — they strengthen long-term relationships. Gallup research shows emotionally engaged members are 5.4x more likely to stay and 5.6x more likely to trust their credit union as a financial advisor. The Member Engagement & Financial Wellbeing Consortium helps credit unions turn everyday interactions into measurable gains in trust and wellbeing. Learn more today.

The post Connection And Caring Matter As Much As Knowledge And Resources appeared first on CreditUnions.com.

Top-Level Takeaways

• A new approach to mortgages at 7 17 Credit Union includes no fees, low rates, and refinance incentives.
• Data and regional challenges shaped the strategy, with programs addressing specific community needs rather than broad national trends.
• Partnering with employers and targeting underserved urban markets helped 7 17 make the connection between stable homeownership, employee wellbeing, and long-term community growth.

The national conversation about housing affordability tends to focus on inventory, home prices, and mortgage rates. But for many would‑be buyers, the upfront costs that make a mortgage possible in the first place present an insurmountable hurdle to homeownership.

At 7 17 Credit Union ($2B, Warren, OH), addressing affordability started with questioning whether many traditional mortgage costs needed to exist at all. In response to feedback from some of its workplace partners, the cooperative launched a series of mortgage-related initiatives in 2025 aimed at supporting broader regional housing needs, including zero-fee home financing and refinancing and rate reductions. But rather than simply introducing a competitive cost structure, the new approach underscores how a credit union approach can look fundamentally different.

“It’s not enough just to talk about the difference between credit unions and banks,” says John Demmler, CEO of 7 17 Credit Union. “We wanted to create a suite of products that give clear examples of the differences. We started with the idea of housing affordability because that was a major issue in our region.”

A Mismatch In The Market

The need for more affordable housing emerged against a backdrop of broader economic pressures shaping Northeast Ohio. Demmler says household incomes in many communities the credit union serves lag state averages, leaving families particularly vulnerable to inflation, higher energy costs, and other rising expenses. At the same time, many local housing markets face aging inventory and limited availability.

The Eastgate Council of Regional Governments commissioned a housing study conducted by the Greater Ohio Policy Center to better understand housing needs in Mahoning and Trumbull counties. The study identified two significant trends.

First, demand was concentrated around one- and two-bedroom units, whereas excess capacity existed in four-bedroom homes, reflecting a shift in demographics toward smaller household sizes. Researchers also identified substantial need for housing in the $500 to $1,000 per month range, aligning with what households earning approximately $25,000 to $35,000 annually could reasonably afford.

The findings revealed another notable tension — families were increasingly seeking homes in the $300,000 to $500,000 range with access to safe neighborhoods, quality schools, and newer housing stock.

“There’s a need for attainable housing, but there’s also a need for quality housing,” Demmler says.

The housing study reinforced what 7 17 had already discovered through conversations with employers and community partners and hinted that its previous investments might not go as far as planned.

“We had made a $100 million commitment to affordable housing starting around November 2024,” Demmler says. “We thought that commitment would carry through 2030. I think we’ll blow through that $100 million several years before 2030.”

“Your Keys, No Fees”

The need for affordable housing isn’t just a family issue; it shows up in the workplace, too. Demmler says employers are starting to connect a stable home life with workforce performance, turning housing affordability into an employee financial wellbeing issue.

“Owners want employees with a financially secure home life,” he says. “When they’re not worried and stressed, they’re more productive at work.”

Armed with this understanding, the credit union considered how it could meaningfully address regional housing needs, household budgets, and homeownership barriers. The answer was a mortgage with no out-of-pocket closing costs, available exclusively to workplace partner employees.

7 17 launched “Your Keys, No Fees,” roughly a year ago. Although eliminating many traditional mortgage fees sounds counterintuitive to ensuring sustainability and long-term financial health, the math tells a different story.

“We earn all of the fees back in about three months through normal interest income,” he says. “If we’re holding a mortgage for 10 years, it’s not too much to ask to give up three months of interest income to break down barriers to homeownership.”

The CEO takes the argument a step further.

“I would challenge every bank, every mortgage company, every financial institution to realize they don’t need to charge these fees either,” Demmler says. “If anyone is getting a mortgage, they should demand they pay zero closing costs, because it’s not needed.”

A Broader Play On Affordability

Interest spread quickly, bringing new energy to the cooperative’s SEG program and allowing it to recruit larger workplace partners.

“Our average workplace partner has maybe 75 employees,” Demmler says. “But recently we’ve brought on some really large ones: Akron Children’s Hospital, Stark State College, Youngstown State University, and Kent State University.”

And, today, 7 17 has expanded its strategy beyond eliminating fees.

“In Northeast Ohio, a lot of urban markets were supported by industries that don’t exist today,” Demmler says. “These cities have been hollowed out over several decades, but we know cities represent the lifeblood of the region. We wanted to do something to strengthen our cities.”

The cooperative expanded its housing initiative, offering a 1% reduction on qualifying mortgage rates to borrowers purchasing homes within the city limits of Warren, Youngstown, Canton, or Akron.

It also expanded into refis to give families more room in their household budgets.

“Mortgage rates went from below 3% to closer to 7%,” Demmler says. “If you bought anytime from 2022 to today, that’s a more challenging monthly payment.”

Homeowners refinancing with 7 17 today can take advantage of a 1% reduction from their existing mortgage rate, down to a floor of 4.99%.

“And we’re not going to charge you a nickel to do it,” the CEO adds.

For Demmler, these offerings are less about growing mortgage volume and more about changing expectations.

“If we can make every bank in Ohio stop charging fees to get a mortgage, then that would be an incredible accomplishment,” he says.

A Holistic Approach

Housing affordability served as 7 17’s starting point, but Demmler says the credit union never intended the strategy to operate in isolation. Instead, it became part of a broader “Ohio Strong” campaign, which includes products that help members navigate household pressures, from auto expenses to savings behaviors. The common thread is less about individual products and more about designing solutions around the financial realities members face every day.

“It’s not enough to have one gimmick product out there,” Demmler says. “You have to look at the whole need of your membership and make sure what you’re offering is relevant and meaningful.”

That philosophy influences how the cooperative thinks about success. Traditional metrics such as loan growth and membership expansion still matter, but Demmler says the credit union’s larger objective is to create products that change the conversation about what financial institutions should provide.

“When the products and services that we put out fundamentally change the expectations of what people want out of banking and moves the needle for other financial institutions to offer better products, then we know we’ve had meaningful change,” the CEO says.

Ultimately, 7 17 built this mortgage initiative to solve a public need first and allow business growth to follow. For credit unions considering similar efforts, Demmler suggests starting somewhere other than product design.

“Seek out first the public need that you’re trying to address,” he says. “Seek that first, and all the rest is stumbled on.”

Member engagement begins with employee empowerment. When employees feel financially secure at home, they show up differently at work — and credit unions like 7 17 are building products designed around that reality. The Member Engagement & Financial Wellbeing Consortium helps credit unions activate the internal shift that turns mission-aligned strategy into measurable member outcomes. Learn more.

The post Keep The Mortgage. Ditch The Fees. appeared first on CreditUnions.com.