High-performing credit unions all share this one trait—and it’s critical to loan growth
New research reveals a widening gap between credit unions leading in loan growth and their peers, driven largely by their adoption of digital integration capabilities. This technological edge enables them to embed lending opportunities directly into consumers' purchase journeys, meeting borrowers at their moment of need rather than waiting for them to seek out credit. The data suggests that mastering digital integration — while maintaining the agility to adapt quickly to market changes — will be crucial for credit unions' loan growth in 2025.
As consumer expectations shift, they no longer want to interrupt their buying experience to search for a loan. Instead, they expect to be offered credit at the precise moment they need it.
Credit unions are also facing mounting pressure from other directions. In addition to evolving consumer expectations, technological advancements once only seen in sci-fi movies , and intensifying competition from big tech companies threaten credit unions in 2025.
The landscape is further complicated by market forces and regulatory pressures putting downward pressure on non-sufficient funds (NSF) fees and interchange income, while liquidity challenges dampen loan growth and drive up the cost of funds. It was the crux of a recent TruStage study, which examines the strategic choices of high-performing credit unions reveals valuable insights into how industry leaders are navigating these challenges while maintaining strong growth trajectories.
The anatomy of credit union leadership
TruStage’s study identified three distinct categories of high performers: loan growth leaders achieving a compound annual growth rates of 12.7% or higher from 2020 to 2023, membership growth leaders with CAGR of 3.3% or higher during the same period and ROA leaders maintaining returns of 92.5 basis points or higher as of Q3 2023.
continue reading »