Top-Level Takeaways

• Dated onboarding and lack of support contributed to high turnover at Community First Credit Union of Florida.
• A new program with shared ownership of onboarding pushed retention above 80%.

When teller turnover began climbing at Community First Credit Union of Florida ($2.9B, Jacksonville, FL), leaders initially chalked it up to pandemic disruption and a tight labor market. But the longer the trend continued, the clearer it became that issues ran deeper.

As the Great Resignation unfolded, annual retention for front-line employees across its 25-branch footprint dropped as low as 69%, prompting difficult but necessary conversations about responsibility, readiness, and culture, says Lori Smith, the cooperative’s chief human resources officer.

“Life had changed with the pandemic; however, we as an organization had not evolved with the shift,” Smith says. “You can’t keep doing the same thing and expect different results.”

Straight To The Source

Instead of guessing why employees were leaving, Community First conducted focus groups that brought together those closest to the work. That included brand-new tellers, senior tellers, and tellers who had progressed into MSR roles, as well as branch and assistant branch managers.

Many teller participants had between six months and one year of tenure, offering perspective on both the onboarding experience and what happened once the training wheels came off. The credit union reviewed exit interview data alongside those conversations to add context.

Smith, who arrived at Community First as the pandemic raged in July 2021, says the goal was simple: go to the source rather than rely on assumptions or anecdotes.

“People closest to the work usually have the best answers,” she says. “We wanted to hear directly from them about their experience.”

The feedback was strikingly consistent, especially around how quickly expectations escalated.

According to Smith: “Our newer team members would say, ‘At Starbucks, they ask me to make coffee. That’s all I do. Here, I’m doing transactions, referrals, pushing lines of credit, and more — and without enough training.’”

The comparison underscored just how complex the teller role had become and how unprepared employees felt in their critical first weeks. The focus groups made it clear that relying on legacy approaches was no longer working and in some cases was contributing directly to turnover.

Those insights inspired Community First to redesign an onboarding experience anchored in a training incubator that blends real transactions with extended support from branch team members and the training and development staff. Rather than moving from classroom simulations straight into high-volume branches, new tellers now build skills in a live-but-supported branch environment with experienced mentors looking on.

Smith says the incubator helps to reduce the anxiety new tellers experience when serving members for the first time while others are waiting and watching across the counter.

“We didn’t want them to feel baptized by fire,” Smith says. “Now we’re investing in them and giving them real experience with a lifeline.”

New hires still complete orientation and other traditional onboarding processes, then start with smaller transactions, learn in real time, and gain comfort before performing independently during peak traffic.

Support Beyond Day One

Notably, support continues after onboarding ends. Leaders conduct formal check-ins at 60 and 90 days, reinforcing engagement and a shared accountability for retention. These conversations are designed to ensure new hires feel connected, noticed, and supported during the period when turnover risk is highest, Smith says.

Within three months of implementing the new onboarding model, teller turnover began to decline. Six months in, Community First revisited the focus groups to assess what was working and where adjustments were still needed. It learned training changes alone were not enough, so it also formalized peer groups among the new team members and leadership check-ins to reinforce connection after onboarding ends.

Branch managers and other leaders now play a defined role in welcoming team members, including the check-ins and sharing accountability for retention beyond HR. Smith says those peer connections matter because early relationships shape whether team members feel noticed and supported.

“Retention stopped being just an HR responsibility,” Smith says. “All leaders play a critical role in creating the environment our team members work in every day.”

Perspective And Opportunity

Community First also expanded onboarding to give new team members a clearer view of the entire credit union, addressing another gap uncovered through feedback. Short presentations from departments across the organization now help new team members understand how all teams support members.

“We wanted to move away from siloed thinking,” Smith says. “We wanted our team members to understand it’s an entire system supporting them and members and see how they fit into that bigger picture.”

That broader context helps front-line employees see long-term opportunity at the credit union rather than a single role.

Results That Changed The Conversation

By the end of 2025, overall retention reached 82% at Community First. Just as important, leaders now view retention as a collective responsibility reinforced through data, relationships, and early engagement.

For Smith, the lesson is clear.

“We should have acted sooner to stop the bleeding earlier rather than waiting until things reached a crisis,” she says. “The evidence was clear. Examining the numbers made it obvious.”

Now, training prioritizes preparation over pressure and sets up employees to succeed.

The post How A Florida Credit Union Rebuilt Retention After The Great Resignation appeared first on CreditUnions.com.

We have at times sacrificed the bottom line to provide the type of banking our community needs.

Ask Cheryl Sio for her resume and she’ll tell you she doesn’t have one. She started working at Sundstrand Credit Union at age 20, became president less than a decade later, and stayed put for the next 50 years.

When Sio retired at the end of 2025, she closed the book on a career that began behind the teller line in 1975 and ended with her leading what is now MembersAlliance Credit Union ($284.2M, Rockford, IL). There’s no list of stops or titles to skim, just a single institution and a half-century arc that mirrors the modern credit union movement itself.

MembersAlliance has been in business for 87 years; Sio was there for more than half that time. The cooperative was founded by employees of Sundstrand, a Rockford manufacturer that still exists today as part of Collins Aerospace, producing aircraft systems and engine components.

As the credit union’s original single-sponsor roots gave way to a broader community charter covering the city of Rockford and three Northern Illinois counties, Sio helped guide the organization through deregulation, technological upheaval, and repeated reinventions of what it means to be a cooperative financial institution in a mid-sized Midwestern city.

Here, Sio reflects on her career and legacy at MembersAlliance and for the movement.

Talk about credit union life before interest rate deregulation and modern liquidity options.

Cheryl Sio: For my first several years, we had one share option and one loan option. The savings rate was 6% and the loan interest rate was 1% per month on the unpaid balance. We calculated loan interest manually each time a member made a payment. There were no standardized operating ratios that I’m aware of. Managing liquidity was a simple matter of stopping loan activity, which only happened once in my 50 years.

I recall the craziness of the early 1980s when the interest rates were sky high. I don’t think we changed our standardized loan rate of 1% per month, and along with a two-year growth spurt, we found ourselves lacking in net worth. I don’t think net capital was much of a regulator thing prior to that.  

How did NCUA’s charter overhaul change the way you led and served members?

CS: MembersAlliance is state chartered and we’ve been ASI-insured since 1981. That said, the overall effect of charter expansion allowed single-sponsor credit unions a sustainability option by broadening the member base and relieving the pressure of being dependent on one employer.

Many credit unions couldn’t and didn’t survive if the main source of membership was sold, merged with a larger entity, or closed the doors. Our charter expansion allowed us to think about the community we served and how we could make a difference.

What innovations in the past five decades have surprised you most?

CS: For the first two decades, everything was mostly manual. MACU kept up with technology, at times more so than banks. For the following three decades, it often felt like we were behind the eight ball. Every time we completed an upgrade, it was already time for the next iteration.

What advice do you have for navigating fintech disruption?

CS: People will always need personal assistance at some point. Technology is grand until it isn’t. If we’re spending all of our time chasing technology, we might be neglecting the need for human connection. Banking is a commodity, so the difference lies in how we serve and treat our members. Are they people we respect and value? Or are they a means of making a profit?

Which cooperative principles have endured at MembersAlliance despite massive change?

CS: I love this question. As the CEO, it was always my desire to honor the spirit of the founders of the credit union. Sundstrand was a local company started by one man that grew to be one of the largest employers in Rockford. It began as an entrepreneurial manufacturing enterprise and evolved into an aerospace company providing research and parts to companies all over the world.

In 1938, a small group of employees formed the credit union to pool their funds to provide small loans to co-workers at a time when borrowing money from a bank was not an option for the average worker.

Our team always tried to honor this by providing a sound, ethical, consumer-focused banking option for our membership. We worked to make enough profit to be sustainable, but our focus was on providing the best possible products and the highest level of individual, respectful, and caring service for our members.

What’s one principle from the past that should guide the next 50 years?

CS: The cooperative nature of a credit union. We are stewards of our depositors’ funds.

What cultural habits — hiring standards, coaching practices, or everyday rituals — most consistently led to better outcomes for members?

CS: As an employer, we viewed our staff as a team, and we helped staff members think of their job as a career. Several staff members have worked at the credit union for many years and have become managers, directors, and vice presidents. Our intent is to give people tools and opportunities to advance their careers.

Looking back, which decision or program best captures the ethos of “people helping people” at MembersAlliance?

CS: Several years ago, our board agreed that excess capital, while a good thing for the regulators, was not truly in the best interest of our members.

When other institutions chose to eliminate receptionists, install call directories, eliminate personal access to loan officers, and more, we chose to keep member-facing personnel for members who prefer genuine human contact.

How do you form community partnerships or credit union collaborations and make those relationships work?

CS: We show up and do whatever we can to promote local not-for-profits and businesses, offering financial education opportunities when and wherever they might be helpful. The impact is not always readily apparent, but we view this as an investment in the future.

Credit union collaborations are a bit difficult these days. Multiple mega credit unions have moved into our area — by way of mergers or purchase — and don’t seem too interested in collaborating or connecting with local credit unions.

Which leadership skill do you wish you’d developed earlier?

CS: It took me 10 years to realize I didn’t have to have my hands in everything. In the 80s and 90s, we went through growth that was at times overwhelming. We were trying to do everything; I’m sure other credit unions were, too.

Fortunately, I had an executive team that had the “whatever it takes” attitude about making things work, putting member service first, and generally stepping into unknown territory. During that time, I learned the importance of teamwork, trust, and encouraging team members to develop their gifts and take the lead.

How would you teach important skills to an emerging leader now?

CS: A few years ago, we enrolled eight directors and managers in an executive team learning program from Callahan & Associates. These were employees I believed to be committed to MACU and what we stand for. I also went through the course so I could understand what they were experiencing and gain the tools to make sure our board was committed to being purpose-driven as well.

I wanted the team to believe they play an important part in MACU’s future and its place in our community. I left the credit union believing MACU will continue as a people-over-profit organization.

How do you define healthy growth for a cooperative? What tradeoffs are you glad you made to protect mission?

CS: For me, healthy growth is organic. If we’re not serving our current members well, we have no business attempting to grow for the sake of growth itself. We have at times sacrificed the bottom line to provide the type of banking our community needs. Such trade-offs might show up in peer comparison rankings in net worth and, at times, growth.

If you could write a letter to future credit union leaders, what would the first line say? And the last line? And the bottom line?

CS: First, as a credit union leader, you are in an excellent position to make a difference.

Second, stay the course, hold true to the cooperative spirit.

Finally, put people and their wellbeing first. The rest will follow suit.

This interview has been edited and condensed.

“Exit Interview” on CreditUnions.com features parting thoughts and wisdom from influential leaders in the credit union movement upon their retirement. Read the series today.

The post Exit Interview: Cheryl Sio, MembersAlliance Credit Union appeared first on CreditUnions.com.

HR executives tasked with guiding both culture and execution now find themselves helping employees understand how to use these tools confidently and responsibly while assuaging fears that these same tools will render them irrelevant in the workplace.

But a sweet spot is emerging, one that relies on messaging as much as machines. When employees participate in pilots, observe the real pain points addressed, and hear clearly that people — not technology — remain the focus, apprehension tends to give way to comfort and even experimentation.

HR leaders are navigating this revolution in real time. They explain where AI is already embedded in their organizations and how they’re preparing their teams to survive and thrive as these tools grow more capable and more common.

Foster Curiosity To Alleviate Fear

Laurie Butz joined Capital Credit Union ($2.7B, Green Bay, WI) as president and CEO in November 2021. She has been a SHRM Certified Senior Professional in HR since 1995.

Butz says her credit union uses generative AI as an efficiency play, automating routine tasks, improving search accuracy, and supporting faster decision-making. Its tools learn from employee behavior to deliver better procedures, create stronger first drafts for training materials, and automate workflow without impacting IT resources.

Capital also uses AI to analyze feedback from exit surveys to highlight trends and help leaders act on real concerns. In marketing, tools like Jasper support brand consistency, speed up content creation, and provide ready-to-use templates for campaigns and website updates.

How is your organization addressing employee fears and resistance around AI adoption?

Laurie Butz: Employees develop proficiency through hands-on tool usages. Our team members have trained on AI technologies, specifically Microsoft Copilot, under the guidance of a Microsoft-certified AI engineer.

At Capital, we foster a culture of curiosity and continuous improvement, therefore we haven’t encountered a lot of fear and resistance around AI in the workforce. For us, automation and support aren’t a threat to job security, so it hasn’t been perceived as something to be feared.

How important are education and open discussion in addressing barriers? How do you incorporate those strategies?

LB: We had Microsoft come on site and lead AI training for all our leaders. Now, we actively encourage leveraging AI to advance our objectives. We expect our senior leadership team to continuously seek opportunities to integrate AI into our processes and team strategies.

What strategies or tools are effective for upskilling employees and bridging the AI skills gap?

LB: Capital ran workshops to teach team members how to use Copilot for business tasks. The sessions familiarized participants with the tool, including creating AI-generated images. The aim was to show how AI can support their daily work and idea generation.

How are you leveraging AI in HR functions — like recruiting, performance management, or succession planning — while maintaining fairness and compliance?

LB:  We’ve enabled BryteAI, an AI module for our HR system designed to help leaders draft job descriptions. We process HR transactions via a conversational bot, and we write performance reviews with AI support.

There Is No AI Skills Gap

Ken Gardner has been with Greater Texas Federal Credit Union ($957.3M, Austin, TX) for 13 years, the past four in his current role as assistant vice president for HR.

Gardner has been helping the HR team adopt AI for daily operations such as drafting communications, improving processes, and strengthening the employee experience across the enterprise and its subsidiary, Aggieland Credit Union, in College Station.

His team is testing 11 custom GPT Assistants from OpenAI for launch in 2026. The assistants will guide employees and managers through policies, benefits, reviews, and core HR processes.

How is your organization addressing employee fears and resistance around AI adoption?

Ken Gardner: We envision AI as augmenting human work much like computers did in the 1980s and 1990s. Just as that technological shift transformed how people worked, AI will do the same. It’s clear that AI will replace some jobs, particularly within large organizations.

For credit unions of our size, we see AI as an opportunity, not a threat. It will help us manage headcount growth as we scale, allowing our teams to focus on higher-value work that requires creativity, empathy, and judgment. That’s why we’re placing greater emphasis on hiring employees who are adaptable and bring strong human skills to the table, skills that technology cannot replicate.

How important are education and open discussion in addressing barriers? How do you incorporate those strategies?

KG: For adoption, it comes down to showing people how AI can make their work better. Demos help, but what truly builds buy-in is giving people tools that solve real, repetitive, and often frustrating problems. Once they experience those benefits firsthand, the hesitation about AI tends to fade and curiosity takes over.

What strategies or tools are effective for upskilling employees and bridging the AI skills gap?

KG: For most employees, there really isn’t an AI skills gap. What they need is exposure to practical use cases. Whether it’s ChatGPT or Copilot, these platforms use plain language prompts that anyone can learn. That accessibility alone eliminates most of the perceived gap. The real challenge isn’t a lack of skill, it’s fear or resistance to change.

When it comes to developing AI internally, design thinking matters far more than coding skills. The real differentiator is thoughtful design: defining a clear use case, creating effective starter prompts, and making smart decisions on the back end to prevent errors and guide users.

For example, in the handbook assistant we recently built, we added clickable starter prompts to help employees begin a conversation. They include, “I’m new to the company, what should I know?” “What should I know about our benefits?” “What are our PTO policies?” and “I want to know more about FMLA.” This kind of design lowers the learning curve and helps employees feel more confident using AI.

As AI takes over more manual and repetitive work, it will naturally create more opportunities for employees to grow their soft skills such as adaptability, problem-solving, and communication. Those are the skills that will matter most in the future, and we are being intentional about hiring and developing people with these skills.

How are you leveraging AI in HR functions — like recruiting, performance management, or succession planning — while maintaining fairness and compliance?

KG: We’ve decided to limit AI in recruiting. Hiring is one of the most human parts of HR, and we want to preserve that personal connection. We are leveraging AI assistants to help create job descriptions, recruiting ads, and interview questions. These tools save time and ensure our materials are clear, consistent, and aligned with our standards.

In performance management, we’re developing an AI assistant that helps employees and managers complete performance reviews. It guides the employee through a series of methodical questions to build their self-review, then uses that input to prompt the manager with targeted questions that weave in relevant themes and feedback.

I’m particularly excited about this because it will significantly reduce the time spent writing reviews and shift the focus toward the actual performance conversation, one that is developmental and engaging rather than just checking the box.

Ultimately, fairness and compliance come from thoughtful design and human oversight. We use AI to streamline processes, not to make final decisions. Our goal is to enhance objectivity and efficiency while keeping people and our core values at the center of every HR process.

Employee Input For Better Output

Ami Iceman-Haueter has been with Michigan State University Federal Credit Union ($8.2B, East Lansing, MI) for seven years and for the past two and half has been chief research and digital experience officer.

Iceman-Haueter says MSUFCU is already using AI in several ways, most notably via virtual assistants Fran and Gene, who respectively support members and employees, enhancing the service experience for both groups.

How is your organization addressing employee fears and resistance around AI adoption?

Ami Iceman-Haueter: MSUFCU has been working with AI partners for several years, and we’ve included our employees in the process every step of the way. Our teams have been involved in everything from designing how our AI systems work to testing them before they’re launched to our members or broader employee base.

We place a strong focus on communication before introducing any new AI-related products or services, helping employees understand how these tools enhance efficiency while emphasizing the importance of keeping humans at the center of our approach.

Involving employees throughout this journey has allowed us to scale several projects, including virtual agents. Sharing the results and impact of these initiatives has been one of our greatest successes.

How important are education and open discussion in addressing barriers? How do you incorporate those strategies?

AIH: Education has been an effective tool, but it alone cannot create change within the organization. That change comes from our leadership team, our employees, and our shared commitment to understanding that AI is part of our toolbox, not a replacement for human talent.

We’ve spent significant time helping employees and managers see AI as a partner in their work while reinforcing that it’s not perfect and we remain responsible for the information it produces. Transparency has been key. Being open about our intent, strategy, and goals for AI has helped our employees feel more comfortable. They understand why we’re embracing AI, how we plan to use it, and exactly where they fit into that strategy.

What strategies or tools are effective for upskilling employees and bridging the AI skills gap?

AIH: We have made AI education a standard part of our training package. We’re also rolling out department-specific use cases and piloting ways to understand what information is most valuable for our managers, leaders, employees, and even interns.

This helps us bridge gaps thoughtfully and tailor AI tools to each access point. Different departments will use AI in different ways, some for automated decision-making and others in service capacities.

The most important part is identifying use cases that support our team’s everyday work. At the same time, we continue to invest in all other areas of training to keep skills and competencies strong across the organization. Our goal is to maintain a healthy balance between problem-solving with AI and problem-solving independently while helping every employee build the skills they need to grow in their careers.

How are you leveraging AI in HR functions — like recruiting, performance management, or succession planning — while maintaining fairness and compliance?

AIH: We’re not currently using AI in recruiting beyond helping to draft job postings. AI supported the development of our performance management program, and some managers might use it as a tool to help complete parts of the process. AI also played a role in creating our succession planning program, and we use it in several of our payroll processes as well.

Fight Fear With Fun

Rachel Schaming is a longtime executive coach and organizational consultant who has served We Florida Financial Credit Union ($719.5M, Pembroke Pines, FL) as its chief human resources officer for the past five years.

Schaming says the Florida shop uses gen AI to streamline loan applications, call center work, and deposit processes. For example, AI cuts loan decisioning time by 50%, speeding up member service and reducing manual review.

In HR, AI tools help create and update job descriptions, craft postings, screen resumes, draft policies, and write newsletter content, saving an estimated 30% of the time spent on these essential HR tasks. The credit union’s Innovation Team has also built two AI apps that give the workforce quick access to procedures, policies, and updates so they can find the information they need without delay.

How is your organization addressing employee fears and resistance around AI adoption?

RS: We use Kahoot quizzes and word searches to make AI technology fun. Our intention is to help employees see that learning new skills can be fun and create new ways to serve our members more efficiently.

What strategies or tools are effective for upskilling employees and bridging the AI skills gap?

RS: Employees are aware that our board requires us to provide a document indicating progress in upskilling with a particular focus on technology and AI competencies. We have an Individual Development Plan (IDP) process that is tied to our performance management software.

How are you leveraging AI in HR functions — like recruiting, performance management, or succession planning — while maintaining fairness and compliance?

RS: Over the past couple of years, we have held team and individual meetings to show employees how AI can enhance their job competencies with increased efficiency. We require all employees to include an AI course in their IDP. Because we require all employees at every level to include technology and AI coursework in their IDPs, we’ve had minimal resistance to learning the new technologies. 

Interviews have been edited and condensed.

Let’s Join Forces To Navigate AI In HR. Faster changes in technology make peer insight more valuable than ever. Callahan creates spaces for credit union HR leaders to connect, compare approaches, and improve performance through programs like roundtables, live webinars, ready-to-use documents, and more. Learn more about Callahan’s programs today.

The post How AI Is Shaping HR For The Next Era appeared first on CreditUnions.com.

The arms race of AI versus AI will continue, so we’re investing in tech that supports scalable, automated response — things like phishing takedowns and fraud detection in loans.

Cyber threats are evolving fast. So are the defenses credit unions use to stop them and the regulatory expectations and tools at their disposal.

From phishing attacks powered by generative AI to increasingly sophisticated social engineering schemes, bad actors are escalating their tactics, prompting financial cooperatives to respond with new tools, stronger policies, and tighter collaboration across departments.

Leaders from 11 credit unions talk about tackling today’s top cybersecurity and fraud threats, what cross-functional strategies help them scale security, and how they’re adapting to changing regulations like the end of the FFIEC Cybersecurity Assessment Tool (CAT).

The Cornerstone Of Cybersecurity

Richard Roark joined Bay Federal Credit Union ($1.8B, Capitola, CA) in 2016 and leads the organization’s technology and information security departments, the project management office, and the business intelligence area.

What’s the most pressing cybersecurity or fraud threat your credit union is facing? How are you addressing it?

Richard Roark: Financial institutions like ours are high-value targets, and attackers are now using AI to generate highly convincing emails, texts, and even voice scams that make it harder for employees and members to detect fraud.

We’ve built a layered defense strategy. Our Vulnerability Extermination Team (VET) focuses on eliminating critical and severe vulnerabilities using the CISA framework to prioritize based on real-world exploitability. We also run nightly internal/external scans and bring in third parties to conduct penetration testing and social engineering exercises throughout the year, ensuring we’re not just checking boxes but actively validating our defenses.

AI and automation play a central role in our response. We’re using AI-driven tools to enhance anomaly detection, cut down on false positives, and speed up response times. Just as importantly, we’ve expanded cybersecurity training to include our board and supervisory committee while continuing regular phishing simulations and fraud awareness campaigns

What role do collaboration and cross-functional teams play in your approach to cybersecurity? How can smaller credit unions navigate these challenges with limited resources?

RR: Collaboration is the cornerstone of cybersecurity. It can’t live in a silo — every department has a role to play. Our VET pulls in people from across our organization, making security a shared responsibility and solving issues faster with perspectives from across the organization.

For smaller credit unions with fewer resources, my advice is to build your own mini task force, even if it’s just one person each from IT, operations, and compliance. Focus on staff and board training — it’s one of the most cost-effective defenses. Lean on peer groups and industry collaboratives to share intelligence. And, finally, prioritize ruthlessly. Not every vulnerability is critical. Use a risk-based approach and tackle the ones that really threaten your members and your institution.

How are you adapting your fraud prevention strategy in response to regulatory changes?

RR: With the sunset of the FFIEC Cybersecurity Assessment Tool, we’ve shifted to a more dynamic, risk-based approach. At Bay Federal, we now align with the CISA framework from the Cybersecurity & Infrastructure Security Agency, which maps better to today’s evolving fraud threats.

We treat NCUA exams as opportunities, not just audits. When findings come in, we use them to drive new initiatives. That has included our VET and expanded information security training for board and supervisory committee members.

On the fraud side, we’re leveraging our systems, layering in real-time tools with our payments partners and building cross-department collaboration so fraud isn’t fought in silos.

2 Distinct Strategies

Stephenie Southard has been with BCU ($6.2B, Vernon Hills, IL) for six years and has 15 years of experience in chief security officer and chief information security officer roles.

What’s the most pressing cybersecurity or fraud threat your credit union is facing? How are you addressing it?

Stephenie Southard: We approach cybersecurity and fraud with distinct strategies, though both aim to prevent unauthorized access and harm. Cybersecurity focuses on threats like phishing, social engineering, and ransomware, whereas member fraud concerns digital account takeovers, identity theft, and organized schemes.

By investing in human-centered recovery, member education, and intelligence sharing, credit unions can address evolving risks. Effective solutions include AI-powered anomaly and synthetic identity detection, automated transaction monitoring and MFA, advanced identity verification, human-AI collaboration, predictive analytics, compliance, and ongoing member engagement. This comprehensive strategy improves speed, accuracy, and resiliency and maintains a member-focused approach.

What role do collaboration and cross-functional teams play in your approach to cybersecurity? How can smaller credit unions navigate these challenges with limited resources?

SS: Collaboration within cybersecurity has become essential for effective defense strategies. As the threat landscape grows increasingly sophisticated, attackers exploit technical, operational, and human vulnerabilities. The absence of collaboration can lead to organizational silos, resulting in communication issues, overlooked risks, and delays in incident response.

A collaborative approach offers distinct advantages. Involvement from HR, finance, legal, operations, and communications teams enhances comprehensive threat identification and enables holistic risk assessment through varied perspectives. Accelerated incident response is facilitated by shared expertise, well-defined roles, and cross-functional coordination, ensuring prompt action and continual reduction of human error. Such teamwork fosters trust, collective responsibility, and heightened awareness of security among all personnel.

Cultivating a culture of security awareness empowers employees to actively contribute to organizational resilience. Participation in threat intelligence sharing further strengthens capabilities beyond internal capacity. By adopting these practices, organizations — regardless of size or resources — can enhance their security effectiveness, minimize risk, and proactively address emerging cyber threats.

How are you adapting your fraud prevention strategy in response to regulatory changes?

SS: BCU began transitioning from the CAT [FFIEC’s Cybersecurity Assessment Tool] a few years ago after hearing initial reports of changes. Many credit unions, including us, have updated their cybersecurity strategies to maintain compliance and address evolving risks.

This shift involves moving from a compliance-based approach to a risk-informed, resilience-focused cybersecurity framework. Adaptations include adopting alternative frameworks such as NIST Cybersecurity Framework (CSF 2.0), Cybersecurity Risk Information (CRI), or CIS Critical Security Controls, which provide guidance on threat modeling, risk assessment, and mitigation, supporting the development of structured cybersecurity practices.

This evolved process at BCU includes increasing the use of risk-based assessments through routine security evaluations of systems, third-party vendors, and cloud environments; conducting service and privileged account audits to identify vulnerabilities; and performing penetration testing and third-party risk evaluations to simulate attack scenarios.

From a fraud and member data perspective, BCU has implemented additional biometric authentication, behavioral analytics, and personalized security alerts to protect member digital platforms and data. BCU continues to follow NCUA guidance, maintain vendor partnerships, seek industry feedback, and participate in intelligence sharing communities like NCU-ISAO to make sure we understand the requirements of our regulators.

AI Vs. AI Arms Race

Mark Burgess joined Credit Union 1 ($1.5B, Anchorage, AK) seven years ago as the cooperative’s CTO. He has been president and CEO for the past three years. He says he consulted with his assistant vice president for enterprise security, Steven Greenbaum, on these answers.

What’s the most pressing cybersecurity or fraud threat your credit union is facing? How are you addressing it?

Mark Burgess: The biggest evolving threat we face is AI used by attackers to create fake account documents, launch smarter phishing campaigns, and target our systems. We’re responding with AI-powered defenses like next-gen firewalls, antivirus, fraud detection, and loan origination tools. The arms race of AI versus AI will continue, so we’re investing in tech that supports scalable, automated response — things like phishing takedowns and fraud detection in loans.

Vendor cyber risk is also rising. We’re using AI to vet vendor documentation and pushing partners to meet our security standards. Sometimes that means reworking how we integrate their tech.

What role do collaboration and cross-functional teams play in your approach to cybersecurity? How can smaller credit unions navigate these challenges with limited resources?

MB: Cybersecurity takes everyone from infrastructure to help desk to security and risk teams sharing intel and aligning efforts. Training employees and tracking fraud trends also require coordination.

For smaller credit unions, prioritize training and simplify your security processes. Partner closely across departments and invest strategically. Your size is an advantage. Faster response and less complexity can help deter attackers, especially if you raise the cost of targeting your members.

How are you adapting your fraud prevention strategy in response to regulatory changes?

MB: The FFIEC CAT helped us get started, but it’s too generic for our risks as an Alaskan credit union. We moved to tailored cybersecurity models and built custom control evaluations using out-of-the-box tools layered with input from different teams.

Now, our strategy uses tech-specific risk platforms, tailored controls, and more precise threat assessments, giving us a stronger fraud and cybersecurity program. Frameworks like CAT are just a starting point. They need to evolve with the organization.

The 3 As: Articles, Acronyms, And Assessments

Robin Romano took the helm of MariSol Federal Credit Union ($49.4M, Phoenix, AZ) in 1999 after eight years as a principal examiner with the NCUA.

What’s the most pressing cybersecurity or fraud threat your credit union is facing? How are you addressing it?

Robin Romano: Ransomware continues to concern us. We have created additional training for our management staff. We created tags for all computers that say, “pull me in case of an attack.” We created tags in our computer room for easy shutdown. Disconnection is a primary step in dealing with this type of attack. 

Phishing fraud remains an issue. We have messages on our website and send emails to members that warn them against such threats.

We have seen an uptick in fraudulent account opening combined with loan applications. Perhaps AI could help with recognizing these applications, as we have found they come in groups and often use similar phone numbers and addresses.

What role do collaboration and cross-functional teams play in your approach to cybersecurity? How can smaller credit unions navigate these challenges with limited resources?

RR: Communication is always the key. For the past four years, we have held monthly meetings to go over all things related to IT, which include patch management, exceptions to policy, penetration testing, firewall reports, and more.

Our credit union league also has quarterly meetings for small credit unions. At the last meeting, it shared information on fraud and AI that was relevant and useful and recommended that a group from each of our league’s states create a fraud group and share information. We hope that happens.

Internally, MariSol has made it a priority to increase compliance classes on cybersecurity and fraud. We are doing more frequent training in all-staff meetings, it is a part of weekly manager meetings, and we share threats and concerns internally through staff meetings and emails.

MariSol belongs to several smaller groups, such as the Credit Union Women’s Leadership Alliance (CUWLA), that share information regarding issues with cybersecurity and fraud. We share that information with all members of the management team.

How are you adapting your fraud prevention strategy in response to regulatory changes?

RR: Honestly, it’s keeping up with all the relevant articles, acronyms, and assessments that’s hard for a small credit union.

MariSol has joined NCU-ISAO. The goal of the organization is “to advance credit union-specific cyber resilience.” To meet that lofty goal, there are a number of reports issued during the month, some daily, and a schedule of meetings for networking and information sharing.

So far, our review of its reports has led to useful information. It provides daily, monthly, and periodic email briefings on cybersecurity. There are also online calls and tabletop exercises. It’s a great way to deepen the credit union’s knowledge.

Business Strategy Integration

Jim Hunsanger is strategic enablement officer at Michigan State University Federal Credit Union ($8.2B, East Lansing, MI). He joined the world’s largest university-sponsored credit union in 2011 and has led risk management and multiple other areas over the years, most recently adding the cyber security department.

What’s the most pressing cybersecurity or fraud threat your credit union is facing? How are you addressing it?

Jim Hunsanger: Social engineering and phishing attacks continue to pose a significant risk to both our credit union and the members we serve. These threats are evolving rapidly, with adversaries targeting not only our organization directly but also our members.

The consequences of a successful phishing campaign are real and impactful, ranging from financial losses to reputational damage. Threat actors are now leveraging artificial intelligence to craft highly convincing, targeted messages that are difficult to distinguish from legitimate communications.

In addition to being part of the problem, AI is also a critical part of the solution. Many of the advanced security controls we deploy today incorporate AI and machine learning to establish behavioral baselines and detect anomalies in real time. These technologies enable us to identify and respond to suspicious activity faster and more effectively.

Alongside advanced tools for detecting and reporting suspicious activity, the credit union places strong emphasis on regular training, testing, and communicating with employees about potential risks and appropriate responses. Well-informed employees are a vital part of our overall fraud prevention strategy.

What role do collaboration and cross-functional teams play in your approach to cybersecurity? How can smaller credit unions navigate these challenges with limited resources?

JH: Cybersecurity is most effective when integrated with business strategy. Modern security leadership balances risk management with enabling innovation, agility, and growth.

This requires strong relationships between security leaders and business stakeholders, built on trust, transparency, and shared accountability. When security is embedded in decision-making, it serves as a catalyst rather than a constraint.

Smaller credit unions face unique resource and staffing challenges, but their lean structures enable more direct communication and faster alignment between security and business priorities. By leveraging specialized vendors and tools aligned with their goals, these institutions can strengthen fraud prevention while maintaining operational efficiency.

How are you adapting your fraud prevention strategy in response to regulatory changes?

JH: Our fraud prevention strategy continues to work toward a holistic approach to monitoring, mitigation, and controls. This includes using data and analyzing activity not just related to transactions, but also access, identity, and authorization. Using this approach brings more precise alerting and quicker handling times.

We continue to evaluate the fraud experience, digesting and responding to existing and known threats, while also partnering with peers and vendor partners to understand other threats. Protecting our members’ funds is of utmost importance. We also aim to educate and equip our members to safeguard not only their finances but also their identities and other personal information.

Interviews have been edited and condensed.

Don’t Stop Here. Read “Cybersecurity Is Under Fire And Credit Unions Are Fighting Back (Part 2)” to hear from Royal Credit Union, Seattle Credit Union, Shoreline Hometown Credit Union, Sunward FCU, Teachers FCU, and UVA Community Credit Union.

The post Cybersecurity Is Under Fire And Credit Unions Are Fighting Back (Part 1) appeared first on CreditUnions.com.

In 2024, Service Credit Union ($6.0B, Portsmouth, NH) appointed Regan as its director of fintech innovation. Though he’d had plenty of previous exposure to credit unions, he described his official entry as a steep learning curve.

“Loans to me have never been assets. Let’s put it that way,” he quips.

Still, in the year that followed, Regan successfully made multiple investments that improved Service’s operations, enabling the adoption of a new deposit-management system and the introduction of an AI chatbot.

Building on this early success, last month the credit union announced the launch of Service Ventures. The CUSO will serve as an independent investment arm of the credit union, partnering with startups that share a commitment to supporting the industry.

“There are always new, creative ways to provide value to your members. That’s the core of it for me,” Regan says. “We have wins, but with every investment we make, we’re also asking what we missed and how we can be better.”

In the following Q&A, Regan touches on his background, the evolution of Service’s fintech strategy, and more.

In your own words, could you briefly walk me through your background and what led you to Service Credit Union?

Brian Regan: My background is mostly finance and the software industry. I started out at a cybersecurity company doing finance for their R&D organization, eventually moving into more of a product strategy-type role working on a cybersecurity platform. Then, I left and started my own software company focused on public cloud environments, helping companies understand what they’re spending in the public cloud and why. Service Credit Union was one of my customers. I also have family ties to the industry, so I had known people there for a while. When I was figuring out what I wanted to do next, I reconnected with [CEO David Araujo] and [CFO Michael Dvorak], and it’s been all uphill from there.

Why has it been important for Service Credit Union to focus on investments in fintech companies?

BR: 1) It’s another way to put assets to work. We make investments for a return, and every return we make we put to work to better our members’ financial lives. That’s one aspect.

2) It’s an interesting way to push our strategy forward faster. We can find technologies that are solving either our specific needs or needs we know are common in the industry and help them to build out those products. And it’s not just us. There are other credit unions out there doing this work and helping integrate fintechs into the credit union industry. It’s exciting. I think it’s a promising path.

Before the launch of Service Ventures, you were brought on as the credit union’s director of fintech innovation. What were your primary goals?

BR: It’s been a lot of learning. How does Service Credit Union work, who are our members, and what are their lives like? We have a really interesting membership with unique needs. I spent a lot of time trying to figure out what problems they need to solve. Additionally, a lot of time went into understanding how others in the organization, like our board, approach the investment decisions we’re making. How do they track success? What’s the risk tolerance we’re comfortable with, and how do we offset that risk? I’ve spent a lot of time setting that foundation, and now we’ve made our first four or five investments.

Is there an example of a partnership you’re particularly proud of?

BR: I think the company that probably has the coolest story and impact so far is ScribeUp. Our CEO saw them in a commercial. At the time, they were a B2C company with a subscription management product. David reached out and said, “Hey, what if we put this in online banking?”

We now have thousands of members using it. Every month, we can see how we’re saving members money with it. They’re finding and canceling subscriptions, and then they’re saying, “Hey, I want to use Service Credit Union to manage more of my financial life.” They’re pulling outside subscriptions and card transactions into our organization. So not only are we making members’ financial lives better, but we’re deepening that relationship.

What is one of the biggest challenges you see when it comes to credit unions making these sorts of investments?

BR: The thing about venture capital investments is you don’t just cancel a contract if you’re unhappy. You’re making a 10-year commitment. That’s the average amount of time it takes to “massage out” a venture capital investment – “massage out” meaning sometimes they’re good, sometimes they’re bad, but hopefully there’s an exit or a way to make your money back. This is a very different type of investment than most credit unions are used to making.

When you’re dealing with early-stage companies like us, it’s important to really look at who you’re investing in. How do we feel about this partnership? How do they want the relationship to go? There are always the core finances of the company to consider, but more than that, what do we think this could do for the industry if it’s successful?

The thing about venture capital investments is you don’t just cancel a contract if you’re unhappy. You’re making a 10-year commitment. That’s the average amount of time it takes to “massage out” a venture capital investment, meaning sometimes they’re good, sometimes they’re bad, but hopefully there’s an exit or a way to make your money back. This is a very different type of investment than most credit unions are used to making.

What was the driving force behind the credit union deciding to establish Service Ventures and expand your efforts?

BR: The real goal is to build a brand in the fintech industry for CUSO innovation. We are a corporate venture capital arm for Service Credit Union and our primary focus is on Service Credit Union and our members, but when looking for investments we are also concerned with solutions that are applicable to the credit union industry as a whole.

Now with Service Ventures officially launched, what’s next for you as General Partner?

BR: Going forward, a lot more of my time will be spent searching for the solutions that we need. For example, companies that aren’t CUSOs yet, who don’t even know what a CUSO is, but want to work with credit unions to solve problems. I meet with probably one company every week where that’s the conversation, and I want to meet with more. Success in the longer term will be looking at how we’re driving operational efficiency and the actual financial return, but I think the member impact metrics and the efficiency metrics stand up right next to the income metric.

This interview has been edited and condensed.

The post Service Credit Union Launches CUSO For Fintech Investments appeared first on CreditUnions.com.

I’m seen as someone who has been pushing the credit union ideal of serving people who are left out of the financial mainstream and doing it against the odds, and I’m proud of that.

After more than three decades at the helm of One Detroit Credit Union ($69.4M, Detroit, MI), Hank Hubbard is preparing to leave the only credit union leadership role he’s ever held.

Hubbard — who will be succeeded by Portia Powell, the credit union’s first Black and female chief executive — has led the cooperative since 1991. Back then it was still known as Communicating Arts Credit Union, rebranding as One Detroit in 2015. Hubbard was running a computer consulting firm in the 1980s and says the credit union’s then-CEO “just decided I needed to be in credit unions.”

Hubbard’s time in the hot seat has coincided with a massive shift within the city of Detroit. For example, only a few credit unions are headquartered in the city today compared to more than 30 in the early 1990s. Many of the problems that plagued Detroit then, such as crime and poverty, are still present, but downtown also has undergone a major revitalization in the past decade. Unfortunately, other parts of the city haven’t benefited from such efforts. That’s why Hubbard has made it his mission to make life better for all Motor City residents.

Here, he reflects on his time in credit union leadership, why Detroit’s fortunes have been a personal calling, his legacy in the industry, and more.

How has the industry changed during your career?

Hank Hubbard: It’s a lot smaller, which is a combination both of financial institutions leaving the city and the consolidation of our industry. But it’s also less collaborative than it used to be. Back then, credit unions had a defined field of membership, and, for the most part, there was little competition.

When does your retirement take effect?

HH: I retire from my CEO position at the end of the year, and I’ll stay on [until June 1, 2025] in an advisory role to help the transition and do whatever my successor wants me to do. I’m at her beck and call.

Did you have a mentor? What was your biggest takeaway from that experience?

HH: I’ve had lots of them. If you look at my whole credit union career, it’s Dean Trudeau, CEO of Public Service Credit Union ($425.4M, Romulus, MI). He’s not that much older than me but is still working, and I’m retiring before him.

The credit union industry makes it easy to collaborate. We’re friendly with one another just networking, spending time together, and sharing experiences. I can’t imagine that happening in any other industry … bankers just don’t do that.

What was it like running a credit union focused on Detroit during some of the city’s lean years?

HH: I’m from Grosse Pointe, which is one street over from Detroit, so I grew up here. It was a vibrant city when I was young in the 1960s but was on a downward path probably until after the year 2000.

Dan Gilbert, the owner of Quicken Loans, saw an opportunity to take on Detroit as a project, move all of his companies here, and invest in making it a fun place. He turned abandoned buildings into living spaces, which we’ve never had downtown. We’ve gotten great restaurants, and it’s been wonderful, but the people we actually serve who don’t live downtown are being left out because all the investment is happening in the central business district. So, our space is to try to help people in the communities where they are left out.

What kinds of initiatives did One Detroit undertake to help lift up the city? Why was that important?

HH: You need to have a car in the Motor City. We don’t have good public transportation, and owning a car is really expensive — not only buying it but also paying for insurance. I think we’re in one of the highest car insurance markets in the country. We found people were getting into car loans at predatory rates. The max in Michigan is 25%, and we were seeing loans at 20% and 25% fairly often. Under normal underwriting, we couldn’t do anything about it because they also were underwater; they owed quite a bit more than the book value of the vehicle. So we came up with a program called Refi My Ride, which refinances loans at half the rate they’re currently paying and will go above 100% LTV. We went as high as 140% on one exception.

That takes someone who is paying 20% down to 10%, which is breathtaking. We save members an average of $65 a month, but for some people it’s like $300 a month because they bought more vehicle than they can afford. We’ve saved members almost $10 million in interest that would’ve gone to other lenders but instead stayed in our members’ pockets and in the community. We help people get out of predatory situations and still make it profitable for us — it’s an everybody-wins situation.

What makes all of this so personal for you?

HH: Growing up, I wasn’t exposed to people who were different from me until I went to college at Bucknell University in Pennsylvania. Then I moved to Orlando, where lots of people were different from me, then I moved to New York — Manhattan and Queens — and I’m on the subway with all kinds of people different from me.

We’ve got a pretty diverse population in Detroit, mostly Blacks and whites but also fairly significant Hispanic, Asian, and Arab communities. But it’s very segregated; they don’t mix very much. The losers in that transaction are the African Americans who were mostly left in Detroit [after the city’s exodus of the late 20th century]. I wanted to try to bridge that gap a little bit.

When the credit union had an opportunity to expand its field of membership to include anybody in the community, our board was very supportive. I kind of got my dream come true when we were able to expand and work directly with people in the city.

The Exit Interview series features parting thoughts and wisdom from influential leaders in the credit union movement upon their retirement. Read the whole series on CreditUnions.com.

What’s the best advice you have for new CEOs?

HH: I don’t like to tell people what to do, but I don’t mind giving insight. One thing that has made my life easier is nurturing positive relationships. Lots of times I see CEOs fighting with their boards — that’s not good for anybody. Nurture relationships with your board and do the same thing with your examiners. Find something to like. Your examiners and your colleagues are an invaluable source of information. Don’t try to do it all yourself. There are people out there like me who like to talk about their challenges and offer advice.

What’s next for you after retirement?

HH: My wife and I want to travel. We’ve never had more than a couple of weeks to go anywhere, so we’re going to try the other side of the world for a little while.

I’ve gained an awful lot of experience in serving the underserved and using grant funding, so something might come out of that, but I don’t know what and I don’t know where to look for it. I’m pretty excited to just decompress. With 30 years of working on the same project, you accumulate a lot of things to worry about. I want to flush that out of my system before I jump back in.

How do you hope to be remembered at One Detroit and across the industry?

HH: Since my retirement announcement, there’s been an outpouring of really nice comments to me —  emails, comments on social media posts, and stuff like that. I’m seen as someone who has been pushing the credit union ideal of serving people who are left out of the financial mainstream and doing it against the odds, and I’m proud of that. I know in Michigan I’m seen as someone who showed others what was possible, and I’m happy with that as my legacy.

This industry has allowed me to be a good guy and be successful in that. It doesn’t feel like there are a lot of industries where that can happen, and I’m proud of that.

This interview has been edited and condensed.

The post Exit Interview: Hank Hubbard, One Detroit Credit Union appeared first on CreditUnions.com.

Identifying, measuring, and managing risk effectively is a growing area of focus for credit unions nationwide. Enterprise risk management has been making headlines for years, but last spring’s banking crisis coupled with growing cybersecurity and other concerns are keeping leaders up at night now.

Here, Daniel Tschopp, CPA and senior vice president of enterprise risk management for Logix Federal Credit Union ($9.6B, Valencia, CA), shares his cooperative’s decentralized approach to risk management.

Talk about your role at Logix.

Daniel Tschopp: I started with Logix about a decade ago and began building a risk management practice. Enterprise risk management is a strategic way of looking at various risk categories, and as we built out our ERM framework, I began evangelizing the idea that everyone is a risk manager. If you see something, you need to say something to ensure we’re aware of risk profile changes across the organization.

What other elements are needed for effective risk management?

DT: Other key building blocks include specifying your credit union’s risk appetite, assembling risk management committees, creating dashboards, and conducting regular risk assessments to identify changes in your posture or risk profile. Overall, it took about five years to put that kind of risk management practice in place at Logix.

How has Logix’s risk management evolved?

DT: At first, it was me, myself, and I focusing on risk management, which is typical for many credit unions. There aren’t always resources available, so ERM often becomes a side job for an existing leader. Areas that are most likely already mitigating risks, such as the fraud department, collections, business continuity, or internal audit departments, are tasked with overall risk management. It’s a balancing act for those leading a division to try to build something across the organization to manage risk. Once you hit a certain level of maturity and complexity, leaders typically begin asking for more resources.

For me, that happened about two years ago, when I added two specialists and began looking at the next phase of building a risk management program. That’s the operational risk management (ORM) piece, which translates risks into controls that can directly help mitigate and measure residual risk in dollar values. My team runs both ERM and ORM concurrently, and we’ve pushed accountability down into business units by repeatedly preaching the gospel that risk management is everyone’s job.

What steps did Logix take to spread risk management across the organization?

DT: We created risk management liaisons, so each business unit has a single person who acts as the point person for everything risk related. That includes helping update risk assessments, identifying potential issues, and generally advocating for risk management as the voice of risk in their area. These liaisons are vital and have really spread the duty of thinking about risk into the larger organization.

Can you provide a specific example of how this model works?

DT: Yes. AI, for example, is on everyone’s minds. It could easily be just me or my staff asking the entire organization what risks it might pose, but that’s not efficient. When an integrated risk management framework combines ERM and ORM, you can quickly identify where AI might have an impact. Specifically, you’ll be able to see where it’s already in use and where it might be beneficial or detrimental and then connect the departments that are already using AI with those exploring future use to discuss use cases and best practices.

Did you encounter any roadblocks in convincing others to prioritize risk management?

DT: Of course. We’re a relatively large credit union with almost 900 employees. Turnover can be a big issue, especially after you’ve built relationships and alliances. It takes time to get back to that same level of understanding with a new team member who hasn’t been exposed to the level of risk management preaching as their predecessor. Ultimately, you need all your peers and executive colleagues spreading the same gospel that risk management is everyone’s job. This area is so big that if I try to do it all by myself, I will fail. Fortunately, the tone coming from the very top, our CEO, is very helpful. She spreads the same message that everyone is a risk manager.

How do you maintain communication with your risk management liaisons?

DT: We have biweekly meetings to touch base with our approximately 45 risk management liaisons. In those meetings, we discuss recent changes and ask if there are any developments that stand out. If there are none, we typically share a recent risk scenario and use that as a training opportunity. For example, last week we discussed credit risk and had an underwriting guest speaker share their risk mitigation strategies and how they might have to adjust to address the latest changes.

Quarterly, we have a formal risk management training for our liaisons. This is a refresher for some and a great opportunity for new liaisons to learn what we expect from them as risk ambassadors. The liaisons themselves are typically at the management level, so they have time to focus on risk but are still in tune with the details about what’s going on in the market and with their staff. They understand how processes work and can help us pinpoint any pitfalls.

How do you communicate with senior executives?

DT: For executives, reporting is important, and finding something that is concise but still deep enough to provide relevant information can be challenging. We haven’t found a silver bullet yet but are close. We provide quarterly reporting and recently shifted from meeting quarterly to meeting monthly to take a deeper dive into one risk category on a rotational basis.

Previously, these 45-minute monthly meetings were with senior managers only, but now that we’re approaching $10 billion in assets, we’ve expanded them and created a separate ERM committee that includes board participation.

Reporting is important, but it shouldn’t be a distraction from the discussion about actual current issues. You can have all the dashboards in the world, but at the end of the day the conversations regarding what leads up to the reporting — which might be lagging the market — and the solutions being evaluated or implemented are critical. It takes time for processes to have an effect, so we must be in tune with what’s going on within each risk area and speak regularly with risk owners.

We’ve also done risk huddles where we focus on what keeps each executive up at night. These can be very effective. From them, we defined three current and emerging risks and formalized ongoing monitoring that will help us manage them.

Lastly, sometimes there are really pressing issues, such as dealing with charge-offs, that require a task force to be assembled. This kind of interdisciplinary team complements our risk management approach and happens separately from our regular risk management framework and communications.

Do you have any parting words of wisdom or advice for others?

DT: Don’t lose faith or patience. Making everyone a risk manager is not going to be an overnight process. Networking with larger credit unions that have a more mature risk management framework and have already received validation through examination feedback can be helpful as you look ahead.

There’s no one-size-fits-all tool for managing risk. Vendors often promise the world, so it’s important to know what you need and want in advance. We have a multitude of tools we use, including some built in-house, and each has its own strength.

This interview has been edited and condensed.

Evaluate Strategies And Collaborate With Industry Peers

Callahan Roundtables offer C-suite executives the chance to collaborate with like-minded leaders on upcoming strategies, discuss roadblocks and lessons learned, and connect on industry hot topics. Ready to empower the leaders of your organization? LEARN MORE

The post Everyone’s A Risk Manager At Logix FCU appeared first on CreditUnions.com.

“My advice for someone pursuing a leadership role in the credit union movement is to lead with resolve and humility. Listen first and approach challenges and opportunities through a cooperative lens as that will yield unexpected results and better answers.”

BECU ($29.0B, Tukwila, WA) is a leader in technology adoption as well as community engagement.

Tom Berquist joined the Evergreen State cooperative in 1994 and through successive promotions has been at the leading edge of its progress. Since 2000, he’s been the executive vice president and chief marketing officer responsible for all BECU marketing efforts including affinity relationships, internal and external communications, marketing technology and analytics, philanthropic efforts, and community affairs.

Berquist retired at end of November, but before he left, he shared insight from his long experience at what is now the nation’s fourth-largest credit union.

How has the credit union industry changed during your career? How has BECU responded to those changes?

Tom Berquist: When I started working in the credit union industry nearly 30 years ago, digital banking platforms such as online and mobile banking did not exist. Although our branches play a critical role in how we support our members, digital services and tools have allowed BECU, as well as other credit unions, to better serve our members.

In addition to online and mobile banking, marketing and branding of credit unions was almost non-existent. In 2005, I was lucky to help spearhead the creation of BECU’s brand and bring its story to the marketplace through the words of our members. Credit unions were not actively involved in their community beyond their SEG relationship. It has been rewarding to see BECU increase its community engagement and make it a key part of our brand.

Finally, the credit union industry has continued to expand its fields of membership, which grants more people the ability to enjoy the benefits of being a credit union member. Although this technically created more competition among credit unions, I now see greater collaboration among credit unions to solve critical issues like access to affordable housing and affordable credit.

Despite the ways the credit union industry has changed, one aspect that has never wavered is the belief and embodiment of the “people helping people” philosophy and operating principles. Supporting our members’ financial wellbeing and giving back to our local communities is part of our DNA and will remain a focus for BECU both now and in the future.

Where do you think the movement is heading? What challenges and opportunities lie ahead?

TB: This might not come as a surprise, but credit unions will continue to consolidate as we head into the future. However, I still believe there is a space for small credit unions that are highly focused on serving specific member segments in our communities. In these cases, there is an opportunity for larger credit unions to better support smaller credit unions. Oftentimes, those larger in scale might be unable to meet the specific needs of certain segments.

To put it simply, there is immense opportunity for credit unions to demonstrate “cooperation among cooperatives” by coming together to serve their members and local communities most effectively.

The biggest challenge I see is also the credit union movement’s biggest opportunity, which is staying relevant to our members and communities. There’s opportunity for financial cooperatives to lean further into what makes credit unions different from banks and fintechs.  Whereas credit unions need parity with banks in terms of products, services, and technology, at the end of the day, our true differentiator is the cooperative model and the credit union philosophy. As not-for-profits, credit unions are uniquely positioned to serve their members’ needs, no matter the circumstances.

What advice do you have for someone pursuing and assuming leadership roles in the movement today? 

TB: My advice for someone pursuing a leadership role in the credit union movement is to lead with resolve and humility. Listen first and approach challenges and opportunities through a cooperative lens as that will yield unexpected results and better answers.

The Exit Interview series features parting thoughts and wisdom from influential leaders in the credit union movement upon their retirement. Read the whole series on CreditUnions.com. 

What’s next for you now? What’s on your bucket list?

TB: Following my retirement from BECU, I hope to stay connected to the credit union and cooperative movement, although I don’t plan on working a “real job.” In addition to spending more time with my family, I plan on doing more skiing, hiking, and flyfishing, volunteering with local nonprofits, and traveling. I’m also looking forward to learning new skills and hobbies.

What final words do you have for the credit union industry?

TB: The cooperative model is an excellent innovation platform for good and allows us to tangibly differentiate ourselves in the marketplace. It also enables credit unions to create long-term sustainability for the cooperative. A cooperative model driven by innovation will have significant positive impacts in our communities and the lives of our members and employees. Leaning into the cooperative model will reinforce how credit unions are earning their tax exemption.

This interview has been edited and condensed.

Is Leadership Development Part Of Your Plan?

With the right leadership skillset, your credit union can outperform the market, attract and retain top talent, and improve your organization’s impact — and Callahan can help. Join the hundreds of credit union leaders who have learned how to do well while doing good.

LEARN MORE TODAY

The post Exit Interview: Tom Berquist, BECU appeared first on CreditUnions.com.

The Sacramento Valley cooperative had been running on its UltraData system for more than 40 years but found the venerable legacy platform was not evolving enough to accommodate the credit union’s strategic initiatives. That included expanded mobile and online banking, of course, along with scaling to accommodate a major expansion of Yolo FCU’s field of membership.

In 2023, Yolo FCU — based in the Yolo County seat of Woodland — won NCUA approval to expand from serving just its home county of approximately 216,000 residents to anyone who lives, works, worships, or goes to school in Sacramento, Placer, and El Dorado counties. That adds nearly 2.2 million potential members to a cooperative that currently serves nearly 22,000.

When it announced the expansion in January 2023, Yolo was already well into the process of swapping its core processing from UltraData to Corelation’s KeyStone platform (as well as converting its digital and mobile banking to Alkami.) That year-long process culminated with its go-live weekend in July, and the credit union is now focused on growing its membership and service capabilities along with its ability to make the most of its new technology.

No Hasty Decision

Jene Rawlings, who has been with Yolo since 1989 and at the helm for the past 10 years, says the decision to transition from its reliable workhorse of a core processing system to a new solution was not made in haste. Nor was the selection.

She says Yolo FCU, working with technology consultancy Samaha & Associates, invested four months in thorough research, including multiple core vendor evaluations, interviews, and demonstrations. The Yolo team narrowed its options to a select few before making the final choice, which was ultimately driven by the promise of open architecture, technological tools, and client engagement.

Look Beyond The Software At The Business Itself

When choosing this critical new partner, says Rawlings, it’s crucial to look beyond just the software.

“In addition to considering the features and functionality of a new core, consider how the core vendor’s business is managed, how quickly and efficiently issues are resolved, and how requests for enhancement are handled,” she advises.

Talking to other credit union users beyond the references vendors provide is also a must, she adds. That includes asking specifically about lessons learned, hearing from conversion and support teams about their experience with the transition, and understanding how vendors supported those clients post-conversion.

But that’s not all she advises.

“Unless you have the talent in-house, and maybe even if you do, I strongly recommend partnering with a technology consulting firm who can help support and execute a solid conversion project plan,” the CEO says.

Setting A Date And Focusing On Data

Once Yolo selected a core processor and digital banking provider, it set a 12-month project timeline. Rawlings said the credit union spent the first couple of months discussing existing and intended hardware, continuing and new ancillary vendors, and learning about the chosen system.

Then, the next few months involved a lot of work on system configuration, data mapping, and database cleanup, the Yolo chief executive says.

“Having been on UltraData for more than 40 years, the database cleanup was a huge job,” Rawlings says. “We involved a team of people from throughout the organization, along with an industry expert in data management services who was very familiar with the UltraData core system and with us.”

That brought Yolo to the project timeline’s second half, comprising continued mapping and configuration, testing and validation, parallel processing, training subject-matter experts (SMEs) and in-house trainers, and then training of the staff itself.

In mid-March and again in early May, management ran everyone through a mock conversion in advance of the July 17 launch date.

“We then had a dress rehearsal weekend the month prior to our go-live date,” Rawlings says. “It went very well.”

Going Live And Delivering

Yolo FCU was a hive of activity leading up to the go-live date, including keeping members and staff up to date about the coming shift. Along with the technology itself, communication was a critical piece of the project’s ultimate success, the cooperative’s CEO says.

Members began to get word about the upcoming conversion a few months before launch via email, in-branch notifications, social media, and mailings. Staff also wore T-shirts announcing and celebrating the upcoming “Technology Enhancement” weekend.

But the effort to boost team morale went way beyond t-shirts.

“Building up to the go-live weekend was a lot of work, and we relied on staff from across the organization to assist where they could,” Rawlings says. “It was all hands on deck, and our staff really supported our efforts. We celebrated and recognized all the hard work that allowed us to be as prepared as possible. We had lots of snacks, catered lunches, and celebrations of milestones along the way to keep the momentum and enthusiasm.”

When the go-live date came, YOLO FCU was ready.

“We informed members we would be closed at 2 p.m. on Friday and would remain closed through Monday,” Rawlings says. “However, we reopened mid-day with a soft reopening on Monday. Our strategy was to under-promise and overdeliver.”

Planning And Communications Keep Hiccups At Bay

Of course, such a complex endeavor was always going to include some hiccups. For instance, says Rawlings, staff underestimated foot traffic and call volumes during the first two weeks after going live.

“Luckily, we had a plan in place to support our front-line staff and contact center,” she says. “Wait times were definitely a lot longer than usual — sometimes in excess of an hour — but we had the ability for members to select a call back or send an email to a dedicated email address.”

Yolo’s marketing team, SMEs, tech team, and even Rawlings herself pitched in to respond to member emails and conduct outreach.

“The only unexpected challenge we faced in that regard was the underperformance of one of our ancillary vendors — unrelated to but integrated with the KeyStone core system,” Rawlings says. “We escalated our complaints, and those issues were resolved, although it took an additional two months and quite a few workarounds.”

The Right People In The Right Places

Rawlings says there are three keys to a successful conversion: Communication, communication, communication.

“There can never be too much member or staff communication when undergoing such a monumental project,” she says. “Our marketing team did a fabulous job of developing and implementing a communication strategy for our members and our staff.”

Critical, too, is having the right people in the right places. That began with recognizing project management is a specific skill not everyone possesses.

“One of the first and best decisions I made was in selecting the project team,” Rawlings says.

Beyond the executives who were involved, Rawlings selected two co-leaders to help keep the credit union organized and on track.

“One had a background in both operations and IT, and with over 20 years tenure, really understood the UltraData core — the good and the bad — and the complicated maze of integrated vendor partnerships,” she says. “The other also had an operational and lending background but over a decade in audit, compliance, and risk management. The combination of talent was a big part of why this conversion project was so successful.”

Immediate Improvements Now, More To Come

Yolo has already seen significant improvements from its new core, including ease of navigation and system controls, integrating other technology such as its ITMs, and more robust relationship pricing.

“We’re just beginning to explore all the additional functionality and customization now available to us,” Rawlings says. “We’ll be evaluating how to leverage the customized workflows, system automation, and other new features like dashboards to reduce friction, streamline processes, and improve service to members.”

Members And Staff: Heard, Understood, Supported

As for the member experience, Rawlings says, “Since we’re only 90 days post-conversion, I don’t know if we can fully evaluate or appreciate the impact on the member experience or satisfaction. I am proud to say that even with the complexity and scale of this conversion project … our members did not experience any significant down time.”

She adds that carefully vetting vendors, effective project management, and careful collaboration among vendors and within the credit union are all critical.

“It’s important not to underestimate the impact on staff — from the newest to the most tenured employees,” she says.

That’s because while change can be exciting, it can also cause anxiety, which can result in resistance.

“We spent a lot of time and effort helping staff across the organization to feel in the know and to be heard, understood, and supported,” Rawlings says.

Don’t Stop Here! Learn how you can gain access to our award-winning publications, intuitive benchmarking tools, collaborative networks, and more.

The post Better Core, Better Future appeared first on CreditUnions.com.

NAFCU was founded in 1967, CUNA in 1934. Dan Berger joined NAFCU in January 2006 as executive vice president of government affairs — its chief lobbyist — and assumed the role of president and CEO in August 2013.

After leading his association’s advocacy over issues as charged as compliance, the CFPB, and interchange, his final role will be to guide the team responsible for melding these longtime rivals and allies into a new entity: America’s Credit Unions.

Here, Berger shares some parting thoughts.

How do you feel about the NAFCU-CUNA merger?

Dan Berger: I have mixed feelings, but I was one of the people who were catalysts in getting this going. Mass consolidation in the credit union landscape is continuing, and we’re at the point where having two trade associations serving a relatively small marketplace no longer makes business sense.

But I believe my old colleagues will continue doing what they’ve always done: an outstanding job being warriors for the credit union movement. I’m confident the entire transition board will hold management to account, and I think the new organization will be successful. But I’ll be watching it from afar.

So, what’s next for you?

DB: The NAFCU board asked me to stay until the end of the year to help with our transformation into America’s Credit Unions. Then I’ll be going back to my home state of Florida.

There have been a few opportunities presented to me by executive recruiters and a couple firms have asked me to speak to their teams about business development and how we built such a strong culture and leadership team with an extreme focus on member service.

Also, I have a 19-year-old daughter studying engineering at Vanderbilt University. If you know anything about Vanderbilt, you know I still have to work. It’s good, though. We have some friends in the music business asking for some business leadership help, and we love visiting Nashville, so there might be something there, too.

I’m in no hurry. I’ll make some decisions after the first of the year.

The Exit Interview series features parting thoughts and wisdom from influential leaders in the credit union movement upon their retirement. Read the whole series on CreditUnions.com.

How have the demands on leadership changed during your time at NAFCU?

DB: Everything is moving faster, whether it’s competition, technology, or the economy. You need a resilient culture in place to create opportunities from these challenges. Those black swan events and headwinds will always be there; how you deal with them determines whether you’re successful going forward. That’s always been the case, but now it’s much faster. That new pace is the biggest change I’ve seen across the movement.

How has senior leadership at credit unions responded to all these new imperatives?

DB: It generally depends on the credit union. Some have warriors on staff who thrive in these fast-changing environments and tough times, and others just don’t. The most successful credit unions are the ones with teams of warriors who find a way to leverage the opportunities they see in challenges.

A big part of their culture, too, is seeing everything through the filter of what’s in the best interest of the credit union and its members. That still matters. You still see that focus shining through at the most successful credit unions.

Have you seen more of these warrior types than you did in the past?

DB: Yes, out of necessity. Credit unions used to have safe niches — auto lending is a big one — but we’ve had to expand to compete. Now it’s not just credit unions versus banks or fintechs; it’s credit unions versus credit unions.

So, in this setting, successful credit unions have to attract people who are problem solvers and have the resilience to get through whatever gets thrown at them. Warriors are people who have the skills, positive attitudes, and passion for people helping people. If your leaders don’t have all this, it’s probably not going to work out in the long run for you.

New Challenges Require New Ways Of Thinking

Learn how to solve big problems — like how to respond to rapid change and evolving competition — through highly differentiated solutions and cutting-edge business savvy all while helping your leaders gain the skills and insights they need to transform the credit union. You can do this and more, and Callahan can help.

Learn More Today

What about succession in this new reality?

DB: That problem-solving attitude and commitment to the cooperative principles has been driving successful credit union leaders for a long time. Now, a lot of senior leaders, including CEOs, of that mindset are retiring, which makes succession planning at the mid and senior level really crucial.

We’re seeing turnover at the upper echelons of our industry on an almost daily basis. You need to make sure you’re recruiting and retaining folks with the skill set you have to have.

What about culture? You talk about it a lot in your blogging and in other settings. What makes it so important now?

DB: Everything revolves around the culture of your credit union. You have to have true believers in creating a culture that produces and supports those kinds of warriors. A big part of that is always talking about the “why.” Why do credit unions exist? Why does your organization exist? That element might be lacking in some parts of our industry.

You can have the greatest strategy, but if you don’t have the culture to back it up, you’re not going to be successful. Your staff won’t be able to execute that great business plan, and if you don’t execute, eventually, you’ll be dead in the water.

Who have been your most important mentors? What did you learn from them about leadership?

DB: There have been so many. I’ll start with my grandfather. He was a Pennsylvania Dutch carpenter, painter, and self-described philosopher. He told me two things that have really stuck with me. First, whatever is worth doing is worth doing well. If you’re going to do something, give 100%. The second was that it takes the same amount of energy to be nice as it does to be a jerk. So be kind. He beat that into me.

In our industry, I’ve had a lot of CEO mentors. Cutler Dawson, the former CEO at Navy Federal ($165.0B, Vienna, VA), and Mike Lussier at Webster First FCU ($1.4B, Worcester, MA) have been mentors. Debra Schwartz at Mission Federal ($6.1B, San Diego, CA) has been one, too. I learned a tremendous amount from her and her team’s turnaround through incredible difficulty at their institution. Then there’s Pete Hilger at Allied Solutions and Bob Trunzo at TruStage. Renee Sattiewhite at the African-American Credit Union Coalition also has been a tremendous mentor to me.

I could throw out names all day long of people who taught me how they made serious changes to their organization based on their vision of the future, whether it’s diversification, investments in their culture, or so much more. I believe in lifelong learning, and they’ve all been a big part of that.

My old colleagues will continue doing what they’ve always done: an outstanding job being warriors for the credit union movement. I’m confident the entire transition board will hold management to account, and I think the new organization will be successful. But I’ll be watching it from afar.

What is your biggest point of pride from your work at NAFCU?

DB: It’s the team we put together at NAFCU. They’ve been absolutely extraordinary, a great group of people truly passionate about serving our members and about their focus on industry advocacy, compliance, and education and training.

They know what we’re doing is serious work. We don’t want four or five big banks left in the financial services marketplace. That’d be terrible for the 138 million American consumers who are credit union members. Main Street America relies on credit unions.

The team we built here … they’re the main reason I’m going through these emotions about leaving an organization that I’ve belonged to for 18 years and headed up for 10. I’m so proud of them.

What has been the biggest setback? What lessons about leadership did you take away from that?

DB: I’ve had a few, as you can imagine, but what still bothers me is that we lost the interchange fight over the first Durbin Amendment. That’s had such an incredible, negative impact on our members, and I lose sleep over it to this day.

All this was supposed to be good for the consumers. We were told a lot of things and there was some fear mongering and group mentality going on that should have been challenged more. It was political fraud and now it may be happening again with Durbin 2.0. We need to raise a little more hell this time.

What closing words do you have for the credit union movement about leadership in the future?

DB: I’d write an open letter to the industry on a couple of things. First and foremost, you have to focus on growing. We’re in a competitive environment where everything is commoditized, so your focus needs to be on how you better serve your members. You have to invest in the technology your current members want and your future members will demand. And you’ve got to be smart about it, with a good strategy and plan behind everything you do.

Next, we need to do a better job of recruiting younger and more diverse members to credit union boards. You might want to consider term limits. These younger folks often think differently than a 57-year-old white guy like me. We should be working to bring on 25-, 30-, 35-year-olds. Their experiences with financial institutions and fintechs and technology in general is different from how we came up, and we need their perspective. That’s going to be crucial for the survival of our industry.

This interview has been edited and condensed.

The post Exit Interview: Dan Berger appeared first on CreditUnions.com.