U.S. households love rewards programs. According to a 2025 survey by Deloitte, such programs not only drive loyalty and boost brand engagement but also increase perceived value, a sentiment shared by 80% of those polled.

Nuvision Federal Credit Union ($3.9B, Huntington Beach, CA) put a simple, cooperative spin on incentives with Added Advantage, a loyalty program the credit union rolled out in 2017.

“Many financial institutions reward individual products, like a checking account or loan, but we wanted a program that recognizes the overall relationship,” says Tom Sweet, senior vice president of marketing for the credit union. “The more business a member does with Nuvision, the higher their score. The higher their score, the higher their benefits.”

What Do Members Really Want?

Sweet says Added Advantage emerged from Nuvision’s broader effort to evolve from a product-focused model to a relationship-based member experience.

Once the idea took shape, the credit union spent roughly a year to plan, model, and test the program before bringing it to market. During that time, teams worked on design as well as operational processes to support the program across digital and branch channels.

“One of the biggest challenges was designing a system that balanced simplicity for members with meaningful incentives for deeper engagement,” Sweet says. “Another challenge was operational readiness, ensuring our systems and staff training were aligned before launching the program broadly.”

Although Sweet and his team created the program, he describes its development as a continuous, multi-department effort.

“Executive leadership supported the strategic vision of the concept, whereas front-line teams provided important feedback on what members value and how the program would work in day-to-day member interactions,” he says. “We wanted the program to be easy to understand while still accurately reflecting the strength of a member’s relationship with the credit union. That required thoughtful modeling around scoring, benefits, and long-term sustainability.”

Since its introduction, adoption has been strong and steady.

“Members appreciate that the program is free to join and that benefits are tied to everyday banking activities they are already doing,” Sweet says.

Simplicity With Meaningful Incentives

When members opt-in they receive an Added Advantage score, which increases as they use more Nuvision products or services.

“It is similar to a FICO score that provides better rates with higher scores,” Sweet explains. “The more a member banks with Nuvision, such as maintaining deposits or financing loans, the higher their score becomes.”

As the score increases, members unlock additional benefits, including lower loan rates, higher certificate interest rates, and cash-back incentives on loans.

The credit union combined digital communications and traditional marketing campaigns for the program’s rollout, although Sweet says support from branch and contact center teams is an essential part of the ongoing awareness strategy.

“Front-line employees were and continue to be key ambassadors for the program,” the SVP says. “They help members understand how the program works and identify opportunities to increase their score by expanding their relationship.”

Today, Nuvision measures success through a variety of key performance indicators, including enrollment and participation, growth in multi-product relationships, and deposit and loan balances.

“Ultimately, the most important measure is whether the program helps members deepen their relationship with Nuvision over time,” Sweet says.

As deposit and loan growth becomes more competitive, those deeper relationships can have a direct impact on balance sheets, not just member experience. For example, Nuvision’s asset growth accelerated notably in recent quarters to reach 18.48% in the fourth quarter of 2025. Meanwhile, loans grew 15.4%, more than double the 6.0% peer group average for credit unions of a similar size. Nuvision’s ability to sustain higher growth supports the idea that member engagement is strong.

Ditch The Gimmicks

Looking ahead, Sweet says Nuvision sees Added Advantage as a long-term platform rather than a static offer. It’s designed so the credit union can continuously enhance the program with new benefits and partnerships over time.

Nuvision Credit Union’s Added Advantage rewards program emphasizes relationship depth, encouraging members to build a broader connection with the credit union rather than rewarding individual transactions.

Added Advantage benefits at Nuvision FCU tie member engagement to higher certificate yields, loan discounts, and cash incentives.

“As member behavior and financial needs evolve, the program can adapt to ensure rewards remain relevant and valuable,” Sweet says.

For credit unions seeking a similar program for membership, the marketing leader says to start with the member relationship, not the reward.

“The most successful loyalty programs aren’t about points or gimmicks,” he says. “They’re about encouraging behaviors that strengthen the relationship between members and the credit union.”

It’s also important to invest in member education early, especially when communicating the financial value the program offers.

“If members can easily understand the program and see the impact on their financial lives, adoption and engagement will follow naturally,” Sweet says.

The post A Rewards Program That Relies On Relationships, Not Usage appeared first on CreditUnions.com.

In an era defined by digital acceleration, it would be easy to assume that physical branches are becoming less relevant. Mobile apps are improving. Peer-to-peer payments are mainstream. We can even pay for Girl Scout cookies with a swipe or a tap, so who needs the drive-thru ATM?

Yet the latest nationwide consumer research from La Macchia Group reveals an important and often overlooked reality: physical presence still shapes trust. For credit unions in particular, branch networks reinforce credibility, stability, and long-term confidence. It turns out that even in the age of smartphones and smartwatches, people still appreciate knowing there is a real building somewhere with a real sign out front.

In January 2026, the market insights experts at La Macchia Group conducted a nationwide survey of more than 1,000 consumers to better understand perceptions of the branch’s role in an increasingly digital world. The findings challenge the vocal naysayers who proclaim the branch is dead and reinforce a clear conclusion: a strong physical branch network continues to build trust and credibility with today’s consumers. Apparently, rumors of the branch’s demise have been somewhat exaggerated.

The full research is available in the whitepaper, “Trust Still Has an Address: What Consumers Say About Branches In 2026.” What follows is a snapshot of the insights shaping branch strategy today.

Across generations, consumers consistently associate physical scale with institutional strength. When asked whether a financial institution appears more established and trustworthy if it has more branch locations, a clear majority agreed. What surprised our experts is that agreement was especially strong among younger and midlife consumers, groups often assumed to be fully digital-first. Even as these cohorts lead in digital adoption, they still connect brick-and-mortar presence with legitimacy. It turns out that a physical building still sends a powerful signal.

This matters because trust remains the foundation of the primary financial relationship. While consumers may experiment with fintech tools, digital wallets, and secondary accounts, most still concentrate their core banking relationship with a small number of institutions. Earning that “primary financial institution” status requires more than competitive rates or app functionality. It requires confidence that the organization will be there tomorrow, next year, and decades from now. After all, few people want their primary financial relationship to feel temporary.

When consumers do visit a branch, our data shows the primary driver is simple: it’s close to home. Service quality ranks second, followed by convenient hours and proximity to work or other errands. The branch is not an afterthought. It is intentionally chosen based on accessibility and experience. In other words, convenience still wins, and a good location can beat a great app.

Younger consumers demonstrate an interesting duality. They are the most active users of peer-to-peer platforms and digital-only services, yet they are also among the most decisive in their opinions about financial institutions. For them, a visible local presence reinforces that an institution is real, established, and invested in the community. Digital convenience may get their attention, but a physical presence helps earn their confidence.

Importantly, the data does not suggest consumers are rejecting digital banking. Many express openness to online-only institutions, and digital functionality is often cited as the reason some people visit branches less frequently. However, even among those who embrace digital services, a significant share still prefers to maintain a relationship with a traditional credit union that has physical locations. Digital may deliver efficiency, but branches deliver reassurance. And sometimes reassurance matters just as much as convenience.

For credit unions, these findings are particularly powerful. Credit unions compete on community connection, relationship depth, and trust. A well-placed branch network reinforces those strengths by increasing visibility, signaling permanence, and supporting the primary financial relationship that drives long-term growth. It is also a bonus if the branch is near coffee shops, grocery stores, and other everyday conveniences. (Even if we don’t have the data to prove it, our experts agree that financial planning and caffeine make a surprisingly effective combination.)

The data does not suggest a choice between digital and physical. Instead, it highlights an opportunity. Institutions that pair strong digital functionality with strategic physical presence are best positioned to earn trust across generations. In a marketplace crowded with apps and emerging fintech brands, branches remain more than transactional spaces. They are visible proof of commitment.

For credit unions looking to deepen member relationships and strengthen brand credibility, the takeaway is clear: physical presence still matters. In many cases, it matters more than institutions may think.

To explore this data and more, we invite you to download the full report, “Trust Still Has an Address: What Consumers Say About Branches in 2026.”

The post Trust Still Has An Address appeared first on CreditUnions.com.

New data from Vanguard shows retirement readiness actually declines by generation, with baby boomers being the least prepared. That’s a troubling trend for credit unions serving older members. Meanwhile, younger workers are pulling ahead thanks to smarter plan design, escalating savings rates, and earlier access to quality investments.

RETIREMENT READINESS BY GENERATION
FOR U.S. HOUSEHOLDS|DATA AS OF 11.04.2025
SOURCE: VANGUARD U.S. RETIREMENT OUTLOOK

Strategic Insights

• Just 40% of baby boomers are on track to maintain their standard of living in retirement. For those who fall short, the gap averages $9,000 a year, which represents nearly a quarter of retirement spending needs.
• By comparison, 47% of Gen Z is on track to maintain their standard of living in retirement. That gap is $3,000 a year.
• It’s a worrying sign that no cohort has a majority of members ready for retirement, pointing to a systemic readiness gap rather than a planning issue prevalent among individual generations or people.

Credit Unions And Retirement Support

• Helping baby boomers, and the generations that follow, with financial planning and education can go a long way toward moving the needle of retirement preparedness. Specially designed products and services don’t hurt, either.
• In 2022, InTouch Credit Union($808.5M Plano, TX) expanded services for those nearing or in retirement. “A common misunderstanding is that financial planning for retirement ends the day you stop working,” says CEO Kent Lugrand. “In reality, it continues long after.”  The credit union uses a variety of channels — such as seminars, one-on-one counseling, and digital resources — to deliver information in a way that works for all members. Read more.
• In 2025, Golden 1 Credit Union ($21.1B, Sacramento, CA) was named No. 1 on Money.com’s “Best Banks and Credit Unions for Seniors.” Its Golden Prestige package for members 62 and older includes free checks, no monthly maintenance fees, up to 10 free cashier’s checks a month, access to a notary, and 30,000 surcharge-free ATMs. Read more.
• Michigan Legacy Credit Union ($214.4M, Wyandotte, MI) works to make sure members keep their hard-earned savings with a program that helps spot potential for financial exploitation before fraudsters can wipe out accounts. Read more.
• Hanscom Federal Credit Union ($1.8B, Hanscom AFB, MA) offers fun, free interactive challenges via an escape room concept that bring financial concepts, like how to plan for retirement, to life. Read more.

Don’t stop here. Retirement readiness isn’t just about saving more, it’s about helping members feel supported and confident in the decisions they make over time. The Member Engagement & Financial Wellbeing Consortium, powered by Callahan & Associates and Gallup, equips credit unions to take mission-aligned, data-informed actions that change member perceptions and behaviors — driving stronger member financial wellbeing and sustainable, profitable growth for the credit union. Schedule a conversation with Callahan’s program facilitators to learn more. Request a conversation.

The post How Prepared Are U.S. Workers For Retirement? The Answer Is, ‘Not Well.’ appeared first on CreditUnions.com.

That’s all good news for Ardent Credit Union ($871.7M, Philadelphia, PA). The Philly-area cooperative has had a partnership with Villanova University Athletics for the past four years and launched its Slam Dunk CD as a way to better leverage the partnership. The certificate, which savers can open with as little as $100, has a seven-month term and a base rate of 3.90% APY. When the Wildcats win a home game, the rate jumps to 4.25%. If they win the next home game, the rate stays steady; if they lose, the rate drops back to the base.

Thanks to Ardent’s association with the university’s athletics department, it has intellectual property rights to Villanova’s logo, which it uses to co-brand its marketing, but name, image, and licensing (NIL) agreements with Villanova players also have been crucial to the program’s success, says Alletta Emeno, chief marketing officer.

“Since the beginning of our contract, we’ve always tried to partner with a player from the team,” she says. “For the first three years of the agreement we were tied with Eric Dixon, who was the leading scorer in all of NCAA basketball at the of last season. [Editor’s note: Dixon now plays for the Memphis Hustle in the NBA G League]. He was a great partner and had a lot of name recognition.”

For this season, Ardent has partnered with Malachi Palmer, who helps promote the program on his social media channels and appears in ads the credit union filmed on the school’s basketball court.

“Folding in NIL has been huge,” Emeno says. “Student-athlete ambassadors bring us a different, younger crowed, which has been a big deal. It also allows us to break through the concept of what a credit union is.”

Don’t stop here. Callahan’s Playbook For NIL Success offers guidance on entering into NIL deals, how to recognize and manage risks, discussion questions and interactive activities, and more. Callahan clients can read it today in the Callahan Client Portal.

FanDuel’s Got Nothin’ On This

Along with social media promotions, the credit union also runs ads on TV during Villanova men’s basketball games and has a table at several home games to conduct in-person outreach.

The majority of those who take advantage of the offer are not students, Emeno says, although once students understand how the CD works, they like the concept.

“People appreciate the gamification of it, and we have a low barrier to entry,” the CMO says. “If a student wanted to put $100 in, it’s probably better than betting it on FanDuel.”

If not students, who? Approximately 90% of those who open a Slam Dunk CD are existing members; however, the credit union requires at least half of the CD must be new money. For those who join because of the CD offer, the credit union does a variety of outreach to ensure new members understand all that comes from being a member. That includes not just banking services, says Emeno, but even options like a free auto-buying concierge service.

The credit union’s chartering SEG was the pharmaceutical company GlaxoSmithKline, so it tends to have a more wealthy, sophisticated membership, Emeno says. Those savers often shop around for the best deposit rates, and the Slam Dunk CD is one way to encourage them to keep their deposits with Ardent.

Although Emeno cannot provide a number for how much money the certificate has brought in, she says it’s been a helpful liquidity driver. After a period of decline, share growth at Ardent has largely been on the rise since the second half of 2023, increasing from negative numbers to 6.26% at the end of 2025.

Villanova’s success on the court also helps drive adoption. With a new coach and a lot of turnover on the team, Emeno says it was unclear at the start of the season how the Wildcats would do —  and, by extension, the CD.

“This season has been a bit of a bell curve for Slam Dunk CD openings,” Emeno says. “Almost the entire team is new. There’s a new coach. People weren’t sure what to expect.”

From a performance standpoint, demand for the CD started slowly this season, but improved along with the team.

“Into December, it became clear they were going to be OK,” Emeno says. “And we did pretty well through January.”

Lessons Learned

One of the most significant lessons learned from the Slam Dunk CD is the importance of simplicity. During the program’s first year, the rate was additive, increasing each time the team won. The base rate was the same for everyone, but those who opened their accounts later in the season had fewer opportunities for their rate to increase. That not only created issues internally but also made the CD a tougher sell. Simplicity around the rate is crucial to piquing fans’ attention, Emeno says.

“The base rate needs to be competitive because that’s what people are looking at,” the CMO says. “They’re thinking with the worst-case scenario they’re going to get a competitive rate. It’s not necessarily the highest rate they could get, but it is very competitive. With the bonus rate, we’re sitting at the top of what’s available now.”

Plus, she adds, having a “3” in the base rate and a “4” in the bonus clearly signals at even a glance that there’s a real differential on the return if the team does well.

“We’re not the largest credit union in our area, so that partnership with Villanova gives us a little bit of gravitas because we’re associated with an athletic program that is the premier program in this area,” Emeno says. “Using that in our marketing campaigns has been huge for brand awareness.”

The takeaway for other credit unions, she adds, is to lean into partnerships that resonate with members, regardless of the institution’s size.

“We’re in a unique situation because we have affluent members,” she says. “We have to make sure we are competitive for our members. Then when we do something a little different like this, it enables us to attract even more members because we’re offering something that’s unique and tied to something they know, even if they haven’t heard of us.”

The post At Ardent Credit Union, Deposits Are A ‘Slam Dunk’ appeared first on CreditUnions.com.

Yet for many community and regional financial institutions, the operational burden of maintaining a fully self-issued credit card program has reached an inflection point.

For leaders prioritizing sustainable growth, cost discipline, and risk mitigation, now is the moment to re-examine whether in-house issuing or a strategic partnership model is best for long-term success.

A Market Defined By Complexity And Escalating Costs

The modern credit card market demands more than basic issuing capabilities. Cardmembers expect seamless digital access, instant provisioning, strong rewards, real‑time fraud alerts, and transparent servicing. Each of these elements requires deep investment in technology, data integration, compliance, and ongoing innovation.

For many financial institutions, the cost of maintaining competitive infrastructure across mobile, fraud prevention, identity verification, rewards, and underwriting has grown faster than the revenue these programs generate. Rising fraud losses, increasing regulatory scrutiny, and the speed at which large issuers enhance their platforms compound this pressure.

Even well‑run self‑issued programs are at risk of falling behind without sustained capital investment and specialized expertise that might not align with broader strategic priorities.

Why Partnerships Are Becoming A Strategic Advantage

An increasing number of credit unions and community banks are turning to agent partnerships as a strategic lever to reduce operational burden while expanding product and technology capabilities. The benefits of agent issuing can include:

• Fully funded rewards and credit lines, eliminating sizable balance sheet commitments.
• Scalable technology and digital features, including mobile wallet integration, installment lending, and real time DIY controls.
• Sophisticated fraud, compliance, and risk management built to scale with evolving regulation and consumer behavior.
• A broader product suite for both consumers and business owners including secured cards and cards with premium rewards like cash back.

Agent credit card programs remain white labeled, allowing financial institutions to maintain brand ownership while accessing the capabilities of a larger issuer behind the scenes.

A Strategic Decision Point

The financial institutions that will win the next decade of card growth are those that treat credit cards not as one‑time product launches but as dynamic ecosystems requiring continuous investment. For CEOs and CFOs balancing growth aspirations with operational efficiency, the question is no longer whether to modernize the card program — but how.

Evaluating the economic, operational, and strategic trade‑offs between self‑issuing and partnership models has become essential. The institutions that make disciplined, forward‑looking decisions today will be best positioned to drive loyalty, strengthen profitability, and compete in an increasingly demanding market.

The post The Strategic Case For Rethinking Credit Card Issuing appeared first on CreditUnions.com.

Your credit union’s primary job is clear: taking care of your people. That might mean members or employees or even your community, but every credit union has that central focus.

But what comes after that? It’s simpler than you might think.

If your credit union’s not growing, you can’t fulfill job No. 1. Growth is the vehicle that provides members with affordable financial services and meaningful consultations throughout their lives. Of course, growth doesn’t just happen on its own —  it takes a well-crafted strategy backed by careful execution to ensure that happens. And that work is nearly always tied to marketing.

CreditUnions.com is all about growth and marketing this week, with a focus on case studies of tested tactics that have made an impact at cooperatives across the country. In the days ahead, keep your eyes peeled for:

• How Villanova men’s basketball is helping boost deposit volumes at Ardent Credit Union.
• Why storytelling is a crucial component to growth at the nation’s largest credit union, which is on a path to hit $200 billion in assets.
• How storytelling is also fueling growth in the Upper Midwest, where authentic member narratives are strengthening brand and showing what “positive impact” looks like in action at Lake Trust.
• The two-pronged approach that helped Georgia United turn the tide on troubling membership growth.
• How a new senior leadership team at Verve retooled the credit union’s approach to organic growth.
• BONUS: How the marketing teams at 3Rivers FCU and Leaders Credit Union organize for impact; the two teams couldn’t be more different, but they share a common goal.

Now it’s your turn. What is your credit union doing to fuel growth? What role does marketing play in that work? Drop us a line, and we might feature your story on CreditUnions.com.

Lastly, many of us will be gathering in Washington this week for the annual Governmental Affairs Conference from America’s Credit Unions. For those who can’t make it, we’ll have recaps from the event on CreditUnions.com. If you are there, be sure to stop by booth 918 to say hello to those repping Callahan & Associates.

The post What’s Job No. 2? appeared first on CreditUnions.com.

The nationwide affordability crisis has become an inescapable issue for credit union members, affecting how they borrow, spend, and plan for the future. From housing and vehicles to education and everyday essentials, the cost of daily living is on the rise, leaving many households struggling to save, qualify for loans, and manage debt.

In today’s economy, it is essential that credit unions balance member support with sustainable lending practices that ensure continued operations for those in need.

Housing Prices Reposition The Real Estate Portfolio

Housing prices are climbing faster than wages in many regions, and members are struggling to save for down payments, qualify for mortgages, or comfortably manage monthly payments if they do buy.

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

At the same time, other residential real estate products — namely HELOCs — have surged. Existing homeowners are increasingly tapping equity for not only home improvements but also to pay down student loans, consolidate high‑interest debt, and cover unexpected expenses.

New Pressures Drive New Lending Plays

Higher sticker prices, rising interest rates, and longer loan terms mean monthly car payments now consume a larger share of already-strained household budgets for longer.

NEW AND USED AUTO LOAN GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

Considering the affordability concerns with new cars, used auto — traditionally the more budget-friendly option — remains the dominant vehicle loan. However, even the average used car loan balance has increased 3.0% at credit unions since last year, suggesting new loans for used auto are larger than they used to be. That can be a major barrier for members in need of new transportation.

Swiping Through The Squeeze

Credit cards have become a financial lifeline for credit union members as inflation continues to chip away at household purchasing power. With essentials costing more each year, members are paying with plastic to bridge gaps in their monthly budgets. As such, average credit card balances were up 2.2% annually $3,406 at year-end 2025.

AVERAGE CREDIT CARD LOAN BALANCE AND GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

The Ripple Effects Of Rising Costs

These are simply two drops of water in the bucket of debt that has the potential to really soak members. As pressures compound across housing, transportation, education, and everyday spending, many members operate with thinner wallets and greater exposure to unforeseen challenges. That shrinking financial buffer plays a  growing role in asset quality as slower repayment from tighter budgets presents higher delinquency risk.

On the opposing side, these compounding affordability challenges underscore the importance of proactive support as members navigate an increasingly demanding economic landscape.

Affordability pressures might show up first in individual products, but their cumulative impact is ultimately reflected in member behavior and portfolio performance. Credit unions must strive to not only manage risk but also recognize how interconnected cost pressures reshape both financial resilience and lending outcomes.

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

The post The Affordability Crisis Is Reshaping Credit Union Balance Sheets appeared first on CreditUnions.com.

Expert Perspectives On The Path Ahead

At a recent meeting of the State National Client Advisory Council (CAC), Dr. Lamont Black, professor of finance at DePaul University and a Filene Fellow, delivered a clear message: the next few years will be pivotal. While credit unions do not need to overhaul operations overnight, they must understand the trajectory of these technologies to avoid falling behind.

AI: Beyond Experimentation

AI adoption is moving from isolated teams to company-wide applications. This transition — driven by generative and agentic AI — marks a shift where AI becomes a capability touching nearly every role within a credit union.

What distinguishes this moment is accessibility. Tools such as ChatGPT and Copilot have enabled rapid adoption across all employee levels, bypassing the slower, IT-led rollouts of the past. For credit unions, the primary risk is not a lack of available tools, but a lack of organizational readiness as the pace of knowledge work accelerates. You can learn more about whether your institution is part of the AI revolution here.

Stablecoins And Regulatory Reality

Alongside AI, stablecoins — digital currencies designed to maintain a one-to-one value with the US dollar — are emerging as a major force in financial services. With the passage of the GENIUS Act, the conversation has moved from theoretical to regulatory. Industry experts anticipate that 2026–2027 will be the critical window for mainstream adoption and regulatory clarity.

Why This Matters For Credit Unions

Stablecoins introduce an alternative payment rail that operates outside of traditional card networks and ACH systems. This shift presents several strategic risks:

• Reduced Transaction Costs: Merchants may prefer stablecoins to avoid traditional fee structures.
• Behavioral Shifts: Consumers may transition toward digital wallets that bypass traditional credit union accounts.
• Income Pressure: If even a modest volume of transactions moves to these new rails, interchange-based non-interest income could be materially affected.

Major players like PayPal and large retailers are already integrating stablecoins into their checkout experiences. While these won’t replace traditional payments immediately, they create a strategic risk if ignored.

The Impact On Revenue And Member Relevance

The emergence of new payment rails is about cumulative impact. As stablecoins gain traction, transactions that previously ran through card networks may shift. This raises critical questions for credit unions regarding consumer protection, fraud prevention in decentralized environments, and maintaining “top of mind” status when the primary wallet is no longer a physical card.

Conclusion: Timing is Critical

Credit unions have traditionally been thoughtful adopters. However, the maturation of digital payments and the speed of AI adoption are compressing these timelines. Competitors are already experimenting, and member expectations are being shaped by non-financial brands. Future-proofing requires understanding these trends early enough to make intentional decisions before options narrow.

About the Partnership

State National is a proud sponsor of Filene’s Center of Excellence for The Credit Union of the Future. Filene is a credit union and consumer finance think tank that connects institutions with insights to change lives. As an Inner Circle member and research sponsor, State National supports this mission.

For more insights, Subscribe to the SNC Spotlight or connect with Dr. Lamont Black on LinkedIn.

The post Credit Unions At A Crossroads: Shifts, Risks, And Opportunities appeared first on CreditUnions.com.

How did all of this play out in the fourth quarter? Tune into Callahan’s quarterly Trendwatch webinar at 2 p.m. ET on Tue., Feb. 24 to find out. Until then, here are a few highlights:

Takeaway 1: Loan Activity Is Picking Up

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

• Loan-origination activity is accelerating faster than balances, a sign that rate cuts are encouraging would-be borrowers to get off the sidelines. The 22.95% jump in first-mortgage originations (along with other real estate originations rising 15.46%) indicates borrower engagement is returning even before balances fully reflect it. This pattern typically appears when consumers anticipate lower rates ahead and begin acting on pent‑up demand.
• HELOC balances rising 15.99% and commercial loans up 11.59% signals that borrowers are selectively re‑leveraging where they see value or necessity. While some loan categories are growing, auto remains stagnant, underscoring how that segment remains rate‑sensitive and price‑constrained.

Takeaway 2: Members Are Prioritizing Liquidity

12-MONTH GROWTH IN SHARE SEGMENTS
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

• Share certificates are losing momentum and may unwind rapidly in 2026. Despite 6.71% growth, certificates are weakening as falling rates and tighter household budgets reduce appetite for termed commitments. With 83.3% of certificates maturing within a year, credit unions face a potential remixing event in 2026 that could pressure funding costs and liquidity planning if members continue favoring short‑term options.
• Money market accounts (up 9.01%) and share drafts (up 7.83%) are capturing the bulk of new deposits, reflecting households’ desire for flexibility amid economic uncertainty. This shift also suggests that consumers are keeping cash accessible as they wait for clearer signals on rates, inflation, and employment.

Trendwatch 4Q25. Explore fourth quarter performance trends and learn about their impact on the industry today with Callahan & Associates. Callahan hosts and industry guest presenters highlight where credit unions are excelling, where challenges are emerging, and how peers are responding. Don’t wait to gain key benchmarks, strategic takeaways, and insights to navigate 2026. Register today.

Takeaway 3: Margins Might Be Nearing A Turning Point

OPERATING EXPENSE RATIO VS NET INTEREST MARGIN
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

• • With interest rate cuts already underway, the industry is likely approaching the top of the margin cycle. Assuming rates drift lower in 2026, asset yields should begin to compress, though deposit costs may remain sticky, especially if liquidity preferences persist. The next year will test how well credit unions have positioned themselves for a cooling margin environment.
  • Net income is rebounding sharply as margins stabilize at elevated levels. A projected 31.60% increase in net income — after a decline last year — highlights how effectively credit unions have capitalized on higher loan yields throughout 2025. With ROA at 0.79% and NIM holding near 3.40%, the industry is enjoying a rare window where funding costs and operating expenses have plateaued, allowing more revenue to flow directly to the bottom line.

Takeaway 4: Softer Membership Growth Could Preview Bigger Challenges

ANNUAL MEMBERSHIP GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

• Industrywide, growth has slowed to 2.01%, down from year end 2024, indicating credit unions are struggling to attract new members at the pace needed to sustain long term expansion. This deceleration raises questions about competitive positioning, digital acquisition strategies, and the industry’s ability to appeal to younger demographics.
• Slower member growth may limit future balance sheet momentum. To overcome this, credit unions may need to lean more heavily on deepening existing relationships rather than relying on new member inflows.

Takeaway 5: Asset Quality Is Still Troubling

ASSET QUALITY RATIO 
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

• Delinquency has reached its highest level since 2013, signaling mounting household financial stress. Overall delinquency stands at 1.02%, a decade high threshold, reflecting the cumulative strain of inflation, high borrowing costs, and stagnant wage growth.
• Revolving credit is emerging as the pressure point, with credit card losses climbing. Credit card delinquency at 2.15% and net charge offs at 4.99% show that unsecured credit is absorbing the brunt of financial stress. Even with rate relief on the horizon, the data indicates that many households are already operating at the edge of their financial capacity.

Let’s Review Your Credit Union Performance Data Together. Join a Callahan advisor for a complimentary 1:1 session to analyze your performance reports. We’ll benchmark your credit union against two to three peer groups of your choice and provide a detailed report of our findings at the end of the session to help your team make informed strategic decisions. Request your free session today.

See You Next Quarter! CreditUnions.com updates this page with the freshest FirstLook credit union data every quarter, so don’t forget to come back for insights into the first quarter of 2026.

The post 5 Takeaways From Trendwatch appeared first on CreditUnions.com.

A majority of Americans need all the help they can get in the regard. In its Emergency Savings Report, Bankrate reports as of December 2025, fewer than one-quarter, 24%, of Americans had emergency savings and only 19% could cover three months or more of expenses. A separate study last year found the median amount of savings across most demographics was just $500.

MEDIAN SAVINGS BY GENERATION
FOR SAMPLE SIZE | DATA AS OF 06.30.25
SOURCE: EMPOWER/THE CURRENCY

“It’s well known in our industry that most Americans don’t have $500 saved for an emergency,” says Brandalynn Winchester-Middlebrook, executive vice president and chief people and purpose officer at Lake Trust Credit Union. “Recognizing that’s something our team might not have, we wanted to support them in their journey to prepare for a future emergency with the confidence that if something arose, they’d have funds set aside.”

In response, the credit union designed an emergency savings program to help employees build $500 in savings during 2025. For every dollar employees set aside in a savings account, Lake Trust made a dollar-for-dollar match up to $250.

The credit union also included a handful of stipulations to protect the FI and its employees:

• Staffers had to open a Team Member Emergency Savings Account, which Lake Trust created specifically for this purpose.
• Employees had to make eight payments via payroll direct deposit.
• Employees could withdrawal funds throughout the year if necessary, but accounts with more than one withdrawal were ineligible for the $250 match.
• The credit union would not match balances until after Dec. 31, 2025.

The last stipulation especially demonstrates how thoughtfully the credit union thought through the account.

“We didn’t want to get to the end of the year and have it be like a Christmas Club account where people withdraw it  to do their holiday shopping,” Winchester-Middlebrook says. “We made a point of having the match period happen after the end of the year.”

Starting A Savings Habit

The direct deposit requirement was another element crucial to the success of the program.

“We thought if we could get team members to take the savings out of their paycheck directly and deposit it, over time they’d become more comfortable with having that money come out,” Winchester-Middlebrook says. “They wouldn’t notice it, as opposed to getting their pay and having to turn around to make a deposit.”

That design takes into account behavioral economics and the understanding that people prefer pre-set options and maintaining the status quo, she adds. If employees could get into the habit of saving, they were unlikely to drop that habit unless absolutely necessary.

Buy-in across the credit union was essential, too. Rather than HR solely leading the charge, Winchester-Middlebrook notes that Lake Trust’s leadership team worked collaboratively to develop the program.

“Our leadership team works together on our wellbeing journey with our team and decided this was the next stake in the ground we wanted to place,” she says.

The initiative did not require board approval, in part because it feeds into the credit union’s broader mission of financial wellness.

Staffers were excited when Lake Trust rolled out the program as part of its annual business plan, Winchester-Middlebrook says, adding that the credit union promoted the program through high-level communication, a page on the credit union’s intranet, an FAQ, and more. Senior leaders conducted huddles with every manager in the organization to ensure they understood how to present the program to their team, and managers were encouraged to walk their teams through the online account-opening process so there was no confusion about how to get started. Many even challenged their employees to set up the accounts together.

An online calculator also helped team members determine how long it would take to reach certain savings goals and how the credit union’s match could help them meet their goals.

Crucially, the credit union provided financial wellbeing and financial wellness educational sessions throughout the year. Those courses covered not only savings but also debt reduction, investing for the future, and more.

Lessons Learned

All told, employees opened 338 accounts and 290 received a match; the remainder were disqualified based on the number of withdrawals throughout the year. Of the 290 who received matching funds, a full 276 — approximately 58% of all employees — received the full amount, says Winchester-Middlebrook. At the conclusion of the program, the credit union paid out approximately $72,000 in matching funds, and employees built up a savings of $277,323, including funds from the credit union.

Lake Trust plans to continue offering the program in some way, although it won’t be an exact replica of the 2025 edition. Winchester-Middlebrook says one possibility is a high-yield account to help boost savings even more.

After all, helping employees build a savings discipline is a lifelong benefit that extends far beyond the credit union’s walls, a sentiment echoed in program participant feedback.

“I wanted to remain anonymous, but I also wanted to share how much I appreciated the Emergency Savings Program,” one employee wrote. “I have always tried to save but never been successful because I withdraw and then I keep taking from it. The calculator and stipulations helped me immensely. Thank you sincerely, this has truly benefitted me financially.”

Winchester-Middlebrook says if she had it all to do again, she wouldn’t make it easier —  she’d advise more communication and guidance to ensure everyone understood the details and the benefits of the offer.

“You could say, ‘Make it simple, don’t have any restrictions,’” she adds. “But some of those restrictions ended up leading to the outcomes that were desired.”

The most valuable lesson involved how to think creatively about improving the lives of those who help members first-hand every day.

“These are the folks working with our members every day trying to improve our members’ financial wellbeing,” Winchester-Middlebrook says. “We want their wellbeing to be at the highest possible level. That helps them feel more comfortable and confident working with our members, as well.”

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