Credit union insights and market access are expanding to shape how mission-driven financial institutions structure and manage risk.
Jennifer Middendorf, Agency Principal, Campio™
Trust is no longer built solely through service in today’s increasingly complex financial environment. It is reinforced through every decision a financial institution makes, especially how it anticipates, manages and mitigates risk.
For credit unions, this responsibility carries added significance. As mission‑driven institutions, credit unions commit to member well-being beyond day-to-day services and lending. They protect the long‑term integrity and resilience of the organization in moments that members may never see but ultimately rely upon for financial security.
That responsibility is becoming more visible. U.S. financial institutions reported $12.5 billion dollars in fraud losses in 2024, a 25% year‑over‑year increase. Fraud is increasingly being tied to erosion of member trust—even when institutions are not at fault.¹ As the impact of risk becomes more tangible, executive teams and boards are revisiting a foundational question: “Does our current approach to risk truly reflect the world we operate in today?”
Risk Has Evolved—And So Must the Strategy
Digital transformation has reshaped the credit union landscape. Mobile banking, digital lending, and real‑time payments have expanded convenience and access—but they have also amplified exposure.
Today, credit unions collectively serve 142.3 million members and hold $2.31 trillion in assets, increasing both the scale and consequences of operational risk events.² Cyber threats, social engineering, and payments fraud no longer represent emerging risks. Regulators now classify them as persistent, systemic challenges requiring continuous readiness and oversight.
Recent events underscore this reality. In 2024, a ransomware attack on a core technology provider disrupted operations at more than 60 credit unions, illustrating how vendor dependency, cyber risk, and operational continuity now intersect.³
As risks continue to expand and overlap, a critical realization has taken hold: Risk is no longer a siloed function. It now represents an enterprise-wide responsibility that shapes member experience, regulatory posture, leadership accountability, and long-term growth. The challenge credit unions face today is not the presence of risk, but the way it now moves across the organization faster than traditional structures.
How Risk Expansion Is Changing Coordination Needs
For decades, the fidelity bond has served as a cornerstone of credit union protection. As a regulatory requirement, it continues to play an essential role, particularly for internal fraud and defined financial losses.
However, today’s risk environment extends far beyond traditional boundaries. Payment’s fraud, cyber events, third‑party vendor failures, and governance decisions now converge, often within a single incident.
Industry data confirms this acceleration. More than 50% of banks, fintechs, and credit unions report rising business fraud, while over two‑thirds report an increase in consumer fraud.⁴ At the same time, AI‑enabled fraud could cost financial institutions $40 billion annually by 2027, increasing both the speed and sophistication of attacks.⁴
The challenge, therefore, does not involve simply purchasing additional insurance or increasing limits. It requires ensuring coverage works together intentionally without creating unintended gaps, overlaps or uncertainty when a claim occurs.
When organizations fail to coordinate coverage, even well designed policies can introduce complexity and delay at precisely the moment clarity matters most.
From Coverage to Coordination
In response, leading credit unions have begun shifting their mindset. Rather than viewing insurance as a collection of individual products, they now treat it as an integrated risk strategy.
Boards increasingly request a unified perspective: how cyber, crime, management liability, and operational risk protections align with each other and with institutional priorities. That shift reflects growing governance exposure.
Directors and officers face heightened scrutiny as oversight responsibilities expand. D&O claim notifications increased 32% year‑over‑year in 2024, with banking and financial services accounting for nearly half of all reported claims.⁵ Increasingly, these claims stem from cyber incidents, third‑party disruptions, and disclosure‑related decisions—areas no longer confined to any single department.
When leadership teams understand how risks interact, and how decisions in one area influence outcomes in another, they respond with greater confidence and foresight.
The Role of Specialized Partnership
As complexity grows, some credit unions now adopt a coordination‑first approach. They work with specialized partners who help translate fragmented protections into a cohesive, enterprise-aligned strategy.
Regulators continue to reinforce this need. National Credit Union Administration (NCUA) guidance emphasizes third‑party oversight, incident readiness, and enterprise‑level governance as ongoing supervisory priorities.³ ⁶
This approach does not replace foundational coverage. Instead, it strengthens it—adding structure, alignment and execution support in an environment where risks no longer operate independently.
Practicality as a Strategic Advantage
Even the most sophisticated risk strategy must work in practice.
Credit unions continue to manage expanding responsibilities with lean internal teams. Examiner insights consistently identify gaps in incident response planning, vendor dependency oversight, and enterprise risk assessments, often driven by capacity constraints rather than intent. ⁶
In this environment, simplicity does not signal a reduction in rigor. It represents a strategic advantage enabling execution, supporting board‑level clarity and allowing institutions to adapt as conditions change.
A Defining Moment
The credit union movement has always rested on a simple idea: people helping people.
Today, that philosophy extends into how institutions prepare for uncertainty. Managing risk no longer focuses solely on protection or compliance. It now centers on preserving trust, enabling growth and sustaining the long‑term ability to serve members in an increasingly complex environment.
This evolution does not replace established protection. It aligns them so risk strategies reflect real world exposure and organizational reality.
As conversations continue across the industry, one theme remains clear: credit unions are not just seeking solutions. They are seeking alignment. And in that alignment lies an opportunity to strengthen not only institutions but the confidence of every member they serve.
Jennifer Middendorf is the Agency Principal for Campio™ an innovative insurance agency owned by Excess Share Insurance (ESI) and powered by Acrisure. Learn more at ChooseCampio.com
Endnotes
1. Abrigo, State of Fraud Report (2024–2025); Federal Trade Commission, Consumer Sentinel Network Data Book (2024).
2. National Credit Union Administration, 2024 Annual Report.
3. National Credit Union Administration, Cybersecurity and Credit Union System Resilience Report to Congress (2024–2025).
4. Alloy, 2024 State of Fraud Benchmark Report; Deloitte Center for Financial Services, Future of Fraud analysis.
5.Marsh McLennan, Directors & Officers Liability Insurance Claims Trends (2024–2025).
6. NCUA Supervisory Priorities and Examiner Insights (2025).