Lydia Wedlock, editorial assistant, The Credit Union Connection
Credit unions have a lot of challenges to face today, and sometimes, that frustration can just make someone want to CUSS their head off! At the Mitchell Stankovic & Associates Underground Collision leading up to the Governmental Affairs Conference (GAC) 2025 at the Historic Hay-Adams Hotel overlooking the White House, credit union leaders discussed the challenges that credit unions continue to face, what challenges are ahead in 2025, and in the middle of throwing out CUSS words, shared their hopes for the future of the credit union movement.
Caring for and Supporting Members
Many Americans are having a rough time financially in recent times due to inflation and other economic factors, and many of those struggling likely live in your community. As BECU President/CEO Beverly Anderson put it:
“You have someone in your family, you have a member, you have an employee who is experiencing huge amounts of stress, uncertainty, anxiety. These people are our members. They are experiencing things unlike anything that they’ve experienced in their lives.”
This makes it all the more important that credit unions take the time to work on solutions and products that meet the needs of today’s credit union members now and into the future. Credit unions also need to make themselves more known to potential members so they can reach those who need credit unions most, such as those who are underbanked.
To Consolidate or Not to Consolidate?
Mergers have been a hot topic in credit union circles for a decade. Should credit unions merge, or should they not? Will Coffey, chief risk and data officer at AKUVO, explained. The answer is that it depends on your credit union’s current circumstances. How well is your credit union’s operational efficiency? Is your credit union ahead or behind in AI and other technology? What direction are the credit union regulators heading in? No matter the answers, the worst thing a credit union can do is not take action. Whether your credit union decides for or against consolidation, it’s essential to actually take the steps that will help your credit union be the best it can be.
Who’s Got the Data?
Cybersecurity continues to be a challenge for many credit unions, especially as technology and AI evolve and become more entrenched in our lives. Along with data breaches, protecting credit unions from fraud can still be an uphill battle. “Fraudsters, we all know, are the smartest guys in the room,” Talkdesk VP & General Manager Rahul Kumar said. “They are creating and working every single day to break down your processes, your data, and your members’ data.” This means that credit unions need to be constantly thinking about their data and processes and how to continue improving to provide better security.
There’s also the matter of member data usage. For many, open banking is a source of anxiety because they are unsure how data will be used from one platform to another. However, if a credit union works with its fintech partners, they can understand where the data is going, help members understand what’s happening and ensure it doesn’t get into the wrong hands.
Future of the Movement
Financial services as a whole is shifting in the current climate, from the increase in digital lenders to the recent policies enacted by the Trump administration, members of the I am the Future panel shared. For credit unions, the biggest fight happening now and into the future is the fight against taxation. Credit unions could be treated the same as for-profit banks, and that’s not a reality credit unions want.
At the same time, there are plenty of opportunities for credit unions to put themselves out there and make a difference in their communities, the panel agreed. When times are tough, credit unions can rise to the challenge as long as they take the time to figure out how to improve and differentiate themselves from banks and digital lenders. Those changes don’t have to be drastic; even the smallest tweaks can make a big difference.
Yes, there’s plenty for credit unions to CUSS about. There’s also a lot that credit unions can do to keep the movement going strong for years to come!