March 2025
PYMNTS Data Book Series: 2025

The Credit Union Advantage: Seven Trends Driving Future Growth

This data book unveils seven strategic trends, notably the significant increase in innovation proactivity among smaller credit unions, with those taking a “laggard’s” approach dropping to just 11% last year from 47% in 2022. Understand how these shifts, alongside a focus on digital self-service and strategic collaborations, are reshaping their competitive landscape and ability to cultivate primary account relationships.

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    This Data Book synthesizes key insights from the “Roadmap to 2030: The Seven Strategic Planks for Credit Unions to Capture Top of Mind” report. It shows credit unions (CUs) are actively adapting and innovating to meet the demands of increasingly digital-savvy consumers and small businesses. While they may lack the national reach of some larger financial institutions (FIs), CUs are rising to the innovation challenge, focusing on strategic areas to retain current members and attract digital-first younger generations. This report, a collaboration between PYMNTS Intelligence and Velera, examines how CUs can leverage digital innovation and strategic focus to enhance member engagement, reduce churn and ultimately achieve “top of mind” status among their members.

    Drawing on surveys of credit union executives, consumers and small to mid-sized businesses (SMBs), this Data Book highlights seven key positive trends emerging within the CU sector. These trends showcase CUs’ increasing proactivity in innovation, their strong ability to cultivate primary account relationships and their strategic investments in digital capabilities and member retention. Furthermore, the data reveals promising engagement with specific segments, including microbusinesses and a growing awareness of the need to attract younger customers through mobile-centric offerings. By understanding and capitalizing on these positive trajectories, CUs are positioning themselves for heightened relevance and growth in the years leading up to 2030.

    Trend 1: Growing Innovation Proactivity

    CUs, particularly smaller ones, are increasingly adopting a proactive approach to innovation.

    Data Point

    The share of CUs with 10 or fewer branches taking a “laggard’s” approach to innovation decreased significantly to just 11% in 2024 from 47% two years earlier.


    Trend 2: High Primary Account Conversion Rate

    CUs demonstrate a strong ability to become their members’ primary FI.

    Data Point

    CUs have a 64% conversion rate of memberships to primary accounts among consumers.


    Trend 3: Focus on Digital Self-Service Innovation

    CUs actively plan to enhance their digital self-service offerings to meet member expectations.

    Data Point

    55% of CUs plan to innovate self-service digital solutions, such as mobile banking and digital onboarding, within three years.


    Trend 4: Increasing Reliance on Collaborative Innovation

    Larger CUs are significantly leveraging partnerships to drive innovation.

    Data Point

    CUs with more than $5 billion in assets average 8.4 products and features that were fully or partially developed with third parties.


    Trend 5: Stronger Engagement With Microbusinesses

    Microbusinesses show a higher likelihood of using CUs as their primary FI compared to other SMB segments.

    Data Point

    12% of microbusinesses (SMBs annually generating $250,000 or less in revenue) use a CU as their primary FI.


    Trend 6: Positive Correlation Between Investment and Member Retention

    Top-performing CUs invest more in innovation and experience significantly lower member churn.

    Data Point

    Top-performing CUs invest an average of 5.6% of their assets in innovation and have a member churn rate of 1.7%, compared to 3.1% investment and 3.3% churn among bottom performers.


    Trend 7: Addressing Gen Z’s Preference for Mobile Engagement

    CUs recognize the importance of mobile-driven features in attracting younger customers.

    Data Point

    21% of Generation Z consumers cite mobile credit card management apps as an innovation priority.

    About

    PYMNTS INTELLIGENCE

    PYMNTS Intelligence is a leading global data and analytics platform that uses proprietary data and methods to provide actionable insights on what’s now and what’s next in payments, commerce and the digital economy. Its team of data scientists includes leading economists, econometricians, survey experts, financial analysts and marketing scientists with deep experience in the application of data to the issues that define the future of the digital transformation of the global economy. This multi-lingual team has conducted original data collection and analysis in more than three dozen global markets for some of the world’s leading publicly traded and privately held firms.

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