The current banking crisis in 2023 has so far focused on large regional and national banks that have had liquidity issues leading to a bank run on deposits, capital inadequacy, FDIC takeovers, and forced sales to new owners. Community-based financial institutions (CFIs), especially credit unions, have so far not made headline news. However, what does the future hold for the credit union industry?

This report examines the market forces, industry trends, and technology impacts that will shape the credit union industry for the foreseeable future. Specifically, we:

•Assess industry characteristics—size, number of institutions, growth, profitability, and how credit unions are performing in the current market cycle.

•Provide new strategy and technology ideas for credit unions and other CFIs.

•Unpack the industry’s technology ecosystem and recommend technology-driven growth strategies.

•Inform IT services providers and deepen their understanding of the credit union market to succeed better in serving it.