In today’s shifting financial landscape, credit union leaders face many strategic and regulatory challenges. Forvis Mazars recently hosted a roundtable with chief financial officers and senior finance professionals from credit unions across the country. This article will explore insights they provided on some of the key topics facing the industry, including mergers and acquisitions, liquidity and lending trends, technology adoption, and emerging risks.
Business Combinations & Mergers
Strategic mergers have become more common, particularly for credit unions seeking to expand their geographic footprint and offerings. The process can be difficult to complete as one side often does not want to give up control. Aligning cultures, managing system conversions, and navigating regulatory approvals are important, participants noted. One executive said a merger was like remodeling a house, noting “it takes twice as long and costs twice as much,” highlighting the operational complexity of such transactions.
Liquidity & Deposit Trends
While many institutions saw strong deposit growth early in the year, there was a noticeable decline in recent months. Participants noted that competitive pressures and regional dynamics affect rate strategies and member behavior. Executives indicated they will monitor these changes closely while planning for next year.
Loan Production & Credit Quality
Consumer and auto loan volumes have declined, while home equity lending remains strong. Credit quality trends differ; some institutions report stable performance while others observe increased charge offs in certain segments. Executives noted portfolio segmentation and proactive pricing strategies are important for managing risk.
Technology & Automation
Executives debated the effects of digital currency such as stablecoin, which could result in the loss of deposits now stored in digital wallets. Leaders shared their experiences with artificial intelligence (AI) and automation tools to assist with reconciliation, digital fraud monitoring, and process efficiency. One participant noted they were “bringing in outsourced tools that use a ton of AI” but still “working on policies to keep our board comfortable,” highlighting the need for governance along with innovation.
Emerging Risks & Compliance
Top concerns for credit unions include cybersecurity, fraud, and evolving regulatory expectations. Institutions are investing in internal controls and compliance frameworks to help address threats and maintain operational resilience.
How Forvis Mazars Can Help
Collaboration and adaptability are paramount as credit unions navigate economic uncertainty and pursue strategic growth. Forvis Mazars is committed to helping credit union leaders with well-timed insights and opportunities for continued engagement. Our next virtual roundtable will take place on Tuesday, December 16 from 1–2:30 p.m. ET. Please contact our team if you would like to participate.