How credit unions and fintechs can cultivate tomorrow’s leaders today
By Maureen Sears, Director of Project Management at HC3
In an industry where the pace of change constantly accelerates – from AI integration to evolving regulatory expectations – financial institutions need more than strong executive teams. They need leadership at every level of the organization.
This shift from hierarchical to distributed leadership isn’t just about modern management trends. It’s a strategic imperative, especially for credit unions that face mounting succession planning challenges. Consider the long-tenured CEO nearing retirement who lacks a clear internal successor, forcing the board to choose between an external hire unfamiliar with credit union philosophy or a merger with a larger institution. Or the fintech that promoted a promising CFO to CEO, only to discover they excelled at financial management and investor relations but struggled with product strategy, go-to-market execution, and the cross-functional leadership needed to scale the business.
These scenarios play out regularly because the increasing specialization of C-suite positions has created vertical silos, limiting the broad organizational perspective that once characterized credit union leadership development. In many cases, institutions find themselves considering mergers not because of financial necessity, but because they lack trained successors with comprehensive experience.
The solution? Start identifying and developing leaders long before they reach the executive level.
Recognizing Future Leaders
Empowering everyone in an organization to feel like they can be a leader transforms how financial institutions operate. When team members feel they have the ability to make decisions, add value, and come up with new solutions, it strengthens the entire organization while developing the next generation of leadership.
Future leaders often reveal themselves through initiative without prompting. They’re the team members who step up before being asked, who see problems and propose solutions rather than waiting for direction. They think beyond current processes and bring fresh perspectives, especially when organizations risk becoming stagnant. Most importantly, they take responsibility for outcomes that affect the entire organization.
Behavioral assessment tools can help identify where people will be strongest, helping credit unions align individuals with roles where they can excel. The goal is creating complementary teams rather than internal competition, where each person brings unique strengths to the table.
Building Effective Development Plans
Identifying potential is only the first step. Effective development requires structure and intention. Quarterly reviews focused on growth and aspiration create natural opportunities for meaningful conversations. Where do you see yourself in six months? In three years? What do you want to do that you don’t have the opportunity to do today?
Once team members voice their aspirations, leadership can create pathways to get them there through projects and responsibilities that elevate and develop them toward their next role. The key is ensuring alignment between what individuals want and what the organization needs, and then creating smaller opportunities for them to flex their leadership voice.
Leadership development also requires allowing room for failure. This challenges the risk-avoidance mindset traditionally seen in financial services. The solution is structured experimentation, taking baby steps rather than giant leaps, with consistent communication and timely feedback. Regular check-ins, weekly to bi-weekly depending on the role, keep communication lines open and allow for real-time adjustments rather than waiting for annual reviews to identify problems.
This same approach applies to innovation. Credit unions know they must embrace new technologies or risk falling behind. But jumping in without guardrails creates risk. Success requires having teams constantly evaluate innovation through multiple lenses: compliance, efficiency, and strategic goals. Start slowly, integrate new technologies incrementally, and assess impact continuously.
This is where having leadership at every level becomes critical. When team members throughout the organization are allowed an active role in spearheading innovation and balancing the importance of compliance, they become partners in managing this challenge.
Culture Drives Everything
None of this works without the right organizational culture, and culture starts at the top. Team members will mirror what they see from executive leadership. When leaders model desired behaviors and core values daily, those practices spread throughout the organization.
In today’s workplace, with some teams still remote or working in a hybrid environment, maintaining culture requires intentionality. Regularly discussing core values in company meetings, one-on-ones, and review processes keeps them front and center. When team members exhibit desired behaviors, acknowledge it. When behaviors drift from core values, address it immediately in a constructive way.
Operational frameworks can help structure processes consistently across the company. The key is making culture monitoring an ongoing practice rather than an annual exercise.
Three Priorities for Success
For both credit union executives and fintech founders looking to build leadership at every level, three priorities stand out. First, regularly assess the people you have, identify their strengths, and recognize gaps where you need to fill roles with new hires or development initiatives. Second, look at your one, three, and ten-year organizational goals and ensure you’re communicating those visions while developing the skills your future organization will need. Third, monitor your culture constantly because any weakness will ultimately affect your ability to achieve long-term goals.
How do you know if leadership development efforts are paying off? The answer lies in continual assessment rather than waiting for annual reviews. Regular conversations and consistent opportunities to display leadership skills help leaders understand the value each team member brings and how they’re embracing change and new responsibilities.
The future of financial services belongs to institutions that can develop leaders at every level, not just in the executive suite. This means creating systems for identification, development, and measurement. It means building cultures where people feel empowered to take initiative. Most importantly, it means dedicating time to development consistently, not as an afterthought.
These are your future leaders. Growing them internally and positioning them for success within your organization is how financial institutions will thrive. The institutions that invest in leadership development today will be the ones leading the industry tomorrow.