By David Evans, The Financial Brand
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Credit unions, faced with mounting pressures from rising deposit costs, intensifying competition, and evolving member expectations, must fundamentally rethink their growth strategies, according to “Next-Level Growth: Credit Union Opportunities in a Changing Market”, a recent report from Cornerstone Advisors.
According to the report, nearly two-thirds of credit union executives now identify new member growth, operational efficiency, and deposit gathering as top concerns, with these “growth anxieties” escalating sharply over recent years. Traditional approaches, including branch expansion, broad marketing campaigns, and incremental product updates, are proving insufficient against competition from fintechs and megabanks who are capturing younger demographics with speed and personalization.
Need to Know:
- 62% of credit union executives ranked new member growth among their top three concerns in 2025, up from 41% in 2022, a 51% increase over three years.
- 74% deployment rate characterizes credit unions’ technology projects, meaning one in
- Credit unions face an existential growth challenge transcending simple member acquisition. “Community” no longer defines itself geographically but through affinity, lifestyle, and values. Meanwhile, Gen Z and millennials demand digital experiences their parents never expected.
The old tools aren’t working. Traditional levers including branch expansion, broad marketing, and small product adjustments are proving insufficient to meet the demands of these new realities. Growth must originate not just from new members but from deeper engagement with existing relationships.