Relevance As A Strategy

Last month, I had lunch with a colleague who just happens to be the CEO of a successful, rapidly growing credit union. As we chatted, we dove into the whirlwind of changes sweeping through the financial services industry. Then he hit me with a gem: "Relevance is one of our strategic pillars." I thought, "Wow, that’s brilliant!" I mean, who would have thought that staying relevant could be the secret sauce? It’s not just a buzzword; it’s crucial for any credit union that wants to not only survive but also thrive—like a unique recipe that enhances the flavor of financial services, making them more appealing to members and future members. Talk about the perfect blend!

But what does a strategic pillar of relevance actually look like in the modern credit union landscape?

Relevance Is No Longer Optional

Relevance is no longer a soft, aspirational concept. It is a measurable strategic requirement tied to technology, demographics, competition, and organizational agility. Every major industry trend is pushing credit unions to either evolve or risk fading into the background. This is particularly critical in a landscape increasingly dominated by digital-only competitors and massive commercial banks.

The data paints an unsettling picture. The number of federally insured credit unions dropped from 4,572 in 2024 to 4,411 by late 2025, according to the NCUA. That consolidation pressure is real and accelerating. Credit unions that fail to evolve risk becoming invisible to members, communities, and policymakers alike. Relevance, then, must be a defined, measurable, and actively managed strategic pillar.

The Forces Driving the Need for Relevance

Several converging forces are making relevance a non-negotiable strategic focus.

Regulatory Pressure. From potential CRA expansion at the state level (Illinois implemented formal CRA regulations in May 2024, with other states including CT, MA, NY, RI, and D.C. already requiring similar compliance) to ongoing threats to fee income and our tax-exempt status, the regulatory environment demands that credit unions stay agile. The banking lobby has shifted its strategy, with the Independent Community Bankers of America (ICBA) now targeting credit unions with over $1 billion in assets for taxation. A credit union that cannot adapt to regulatory change becomes irrelevant to both members and policymakers. (Source: NCUA 2025 Supervisory Priorities; Illinois CRA Compliance, Forvis Mazars; America's Credit Unions Advocacy Update)

Competitive Convergence. Fintechs are redefining convenience and personalization. The biggest banks are accelerating their own digital transformation. And non-traditional players like Apple, PayPal, and Square continue reshaping financial expectations. Interestingly, the dynamic has shifted somewhat: only 1.9% of fintechs now view credit unions as direct competitors, down from 16% in 2023, and roughly 40% are actively seeking partnerships with credit unions. That is an opening worth taking. (Source: Jack Henry 2025 FinXTech Credit Union Survey; PYMNTS Fintech-CU Partnership Study)

Technology, AI, and Cybersecurity. Automation, AI, and digital banking are no longer differentiators. They are expectations. In 2025, 76% of all member interactions occurred through digital channels. And 72% of credit unions plan to increase AI investments in 2026. Early adopters are seeing real results: AI-driven underwriting has increased loan processing volume by 70% for some credit unions, and AI-powered fraud detection is identifying up to 95% of suspicious activities in real time. And with rising cyber threats ranked as the number one technology priority for 2025 by credit union executives, the challenge is balancing innovation with trust. (Source: FlexCU Tech 2026 Digital Outlook; Wipfli 2026 State of the Credit Union Industry; Jack Henry 2025 Strategy Benchmark)

Demographic Urgency. This one has been on our radar for years, and the data keeps getting more pressing. The average credit union member is 53 years old. Baby Boomers make up 39% of total membership. Meanwhile, only 10% of members are Gen Z, and just 14% of Gen Z consumers consider a credit union their primary financial institution. The good news: 47% of Gen Z and Millennials combined say they are open to switching to a credit union if offered better digital tools and ethical banking practices. That is a window of opportunity. Younger members evaluate financial institutions on transparency, financial education, and user-friendly digital tools, not legacy brand loyalty. Credit unions are highly aligned with those values. But capitalizing on that alignment requires seamless mobile banking, modern product design, and proactive outreach. (Source: Filene Research Institute; Credit Union Times, July 2024; Apiture Consumer Survey)

What Relevance Looks Like in Practice

Being relevant means three things working together.

Member-Centric Value. Credit unions must meet members where they are, digitally, emotionally, and financially. Personalization becomes the new loyalty driver. AI personalization has already boosted digital channel revenue by 33% and cross-sell revenue by 25% for credit unions that have deployed it. (Source: PYMNTS Intelligence, Credit Union Innovation Study 2026)

Organizational Agility. The ability to pivot quickly, to move from annual planning to continuous strategic alignment, is no longer a competitive advantage. It is a survival skill. Agile leaders use scenario planning, adjust strategies based on external shifts, and create safe spaces for experimentation and fast failure. Leadership must have the courage to innovate before disruption forces the issue.

Community Impact. Modernizing the credit union mission means demonstrating measurable community value and aligning purpose with contemporary needs: financial wellness, access, and inclusion. This is what separates credit unions from every other financial services option in the market.

The Five Strategic Pillars That Drive Relevance

If you are building a relevance roadmap, these are the areas that matter most right now.

• Digital Experience Integration. Create seamless, omnichannel member journeys. Eliminate friction across every platform. AI-enabled service and personalization are the expectation, not the upgrade.

• Data-Driven Decision Making. Use data to predict needs, not just report history. Member segmentation and behavioral insights should drive strategy. Fifty-nine percent of credit unions identify weak internal data quality as their primary bottleneck for AI success, so building the data foundation is the first step. (Source: Wipfli 2026 State of the Credit Union Industry)

• Innovation and Risk-Tolerant Culture. Shift from "avoid risk" to "manage risk intelligently." Build a learning environment where cross-functional collaboration is the norm and experimentation is encouraged.

• Workforce and Leadership Evolution. Develop adaptive, transparent, future-ready leaders. Upskill staff for digital and data fluency. Employee engagement is a competitive advantage that most organizations underestimate.

• Strategic Partnerships and Ecosystem Thinking. Evaluate fintech partnerships and, where appropriate, mergers as strategic accelerators. Build ecosystems that expand member value rather than protecting legacy operations.

Operationalizing Relevance: Where to Start

The strategy is only as good as the execution. Here is a practical path forward.

Define relevance as a measurable strategic pillar. Set KPIs tied to member growth, digital adoption, engagement, and satisfaction. Get board alignment and governance structures that support agility, not just stability.

Build a relevance roadmap. Map short-term wins, things like quick digital improvements and communication shifts. Then move into mid-term initiatives: data infrastructure and product redesign. And plan for long-term transformation through AI and new business models. One critical lesson from 2025: budget for the internal labor and project management required to implement technology, not just the software itself. (Source: CUInsight, 2025 Strategic Planning for Credit Unions)

Modernize the member value proposition. Deploy financial wellness as a true differentiator. Offer personalized product bundles and proactive, predictive service that anticipates member needs before members voice them.

Strengthen community and policy influence. Demonstrate your impact to legislators and regulators with data. Align community investment with your strategic goals so that your relevance is visible beyond your own membership.

Relevance Is a Mindset, Not a Project

The credit unions that will thrive in 2030 and beyond will be digitally transformative, data-driven, mission-aligned, and member-obsessed. Getting there takes time, planning, and genuine organizational commitment.

Relevance is the strategic lens through which all decisions must be made. Credit unions that embrace it will lead the next era of cooperative finance. The opportunity is there if we choose to take it: to evolve without losing identity, and to serve members in ways that matter most today.

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References: NCUA 2025 Supervisory Priorities (ncua.gov) | Jack Henry 2025 Strategy Benchmark & FinXTech Survey (jackhenry.com) | Wipfli 2026 State of the Credit Union Industry (wipfli.com) | Filene Research Institute, Next Generation Credit Union Growth (filene.org) | Credit Union Times, The Credit Union Awareness Gap (cutimes.com, July 2024) | Apiture Consumer Survey (apiture.com) | PYMNTS Intelligence, Credit Union Innovation Study 2026 (pymnts.com) | Forvis Mazars, Illinois CRA Compliance (forvismazars.us) | America's Credit Unions Advocacy Update (americascreditunions.org) | FlexCU Tech, 2026 Digital Transformation Outlook (flexcutech.com) | CUInsight, 2025 Strategic Planning for Credit Unions (cuinsight.com)