By Barb Lowman, CUDE, President of CUNA Strategic Services
I’ve been thinking about the well-known adage, “dress for the job you want, not the job you have.” It reminds me of a trend I’ve seen lately in credit unions of “behaving bigger than you are.” Both are grounded in the idea of showing up confident and polished (maybe before you really feel that way) and letting your mindset shape reality.
This is a fascinating concept to apply to credit union growth – in one fell swoop it addresses the fintech bogeyman head-on and thrusts thumbs in the face of naysayers who don’t think small can be mighty. And it might be the differentiator your credit union strategy needs.
For decades, asset size has been the default measuring stick for credit unions. It shapes peer-group comparisons, informs vendor pricing, and often becomes the implied limit of what a credit union believes it's capable of. A $150 million institution assumes it operates in the realm of other $150 million institutions.
Of course, nowadays, credit unions’ biggest competitors tend to be big banks and neobanks on entirely different scales. Asset size doesn’t determine member expectations (if it ever did). Members expect that the app works, the loan process is seamless, and staff are knowledgeable and helpful – whether their credit union has $80 million or $8 billion in assets.
So, in a way, it makes sense to throw asset size out the window, to stop giving ourselves a glass ceiling of what’s possible and just do the thing – whether it’s a community partnership, a big ad campaign, a new digital banking feature, or something else on your credit union’s bucket list. Start acting like a bigger institution by taking up the space you deserve.
This isn't about pretending to be something you're not, or overspending on technology to keep up appearances. I’ve said over and over that small credit unions are the beating heart of our cooperative movement. They are vital to our industry, and they don’t need fixing. What they do need is a magic wand to give them more operational bandwidth. Since magic wands tend to be in short supply, here are some other ways I’m noticing credit unions behaving bigly:
Member experience first. For credit unions, member satisfaction is a non-negotiable. That’s why I’m seeing so many credit unions of all sizes doubling down on tools and features to make digital experiences smooth, seamless, and secure. From digital account opening to new payment options to the latest security, small credit unions have started delivering world-class digital experiences.
Strategic partnerships over in-house infrastructure. Rather than trying to build every capability internally, smaller institutions are leaning on fintech partnerships, CUSOs, and shared platforms to access enterprise-grade tools without an enterprise-grade budget or headcount. It’s a no-brainer, and it’s unlocking whole new worlds for smaller credit unions.
Brand confidence. Bigger-behaving credit unions market themselves with the same clarity and confidence as national brands. That means clear positioning, consistent voice, a defined reason to exist, and maybe even a little extra swagger you thought only Wendy’s or Old Spice could get away with.
Data-informed decisions. Instead of relying on gut instinct or "the way we've always done it," these institutions treat data the way big banks do: as a tool for member segmentation and personalization (hello, email marketing!), to support smarter product strategy decisions, and even to guide underwriting decisions. Data is king – even if the kingdom is under $50 million in assets.
Small and mid-size credit unions don't need to apologize for their size, and they certainly don't need to pretend to be something they’re not. But they do have a choice in how they show up, and the credit unions I’m watching are the ones that have decided to show up big – they’re here to win back market share from the neobanks and show the world what a local, personalized, modern banking experience can look like.
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