Last year, the financial services industry was shaken by the announcement of a multi-billion-dollar merger between First Tech Federal Credit Union and Digital Federal Credit Union, creating an estimated $28.7 billion institution post-merger. 

This is not an isolated event — several other large-scale mergers have taken place in recent years, including SPIRE Credit Union and Hiway Credit Union (rebranding as Blaze Credit Union), SchoolsFirst Federal Credit Union and Schools Financial Credit Union, and the recent announcement of a merger between Keesler Federal Credit Union and Jefferson Financial Federal Credit Union, to name a few.

To be fair, numerous small credit union mergers have also taken place or are currently underway. Mergers remain a strategic consideration for financial institutions of all sizes for a variety of reasons. However, what stands out in the press releases announcing these large-scale mergers is the language used by the leadership teams. 

For example, in the press release announcing the First Tech FCU and Digital FCU merger, Digital FCU President/CEO Shruti Miyashiro stated, “The transformative power of this merger of equals will unlock enormous potential to deliver value and opportunity for the people who matter most—our members, our employees, and the communities we serve.” 

Meanwhile, Greg Mitchell, President/CEO of First Tech FCU, remarked, “Uniting the capabilities of the nation’s two leading technology-forward credit unions will allow us to innovate and push the boundaries to deliver more elevated experiences by making material investments in products and services to meet the needs of our growing membership.”

These statements highlight common themes in merger announcements: enhanced member services and access, operational efficiencies, financial stability, geographic expansion, and cultural alignment. But this raises an important question: If multi-billion-dollar institutions cite these factors as reasons they cannot sustain themselves independently, what hope do small credit unions have to survive and thrive in today’s financial landscape?

According to the NCUA, as of Q3 2024, nearly 3,800 federally insured credit unions held assets at or below $500 million, representing almost 84% of all credit unions nationwide. If large institutions believe they cannot remain competitive without merging, what does the future hold for these 3,800 smaller credit unions? 

The outlook appears challenging, doesn’t it?

While there are undeniable benefits to achieving scale, it is crucial to ask: Who loses in these mega-mergers? Disadvantaged members. Vulnerable citizens. Small business owners striving to stay afloat. Families seeking personalized financial solutions tailored to their unique circumstances. Large financial institutions can and should meet these needs, but when key decisions are no longer made at the local level, members risk becoming just numbers on a balance sheet. The credit union movement has long prided itself on prioritizing people over profit. When financial success is achieved at the expense of member well-being, the very mission of a credit union is compromised.

To small credit unions questioning their impact or fearing that they cannot survive without scaling up — let me assure you: You matter. Your work changes lives. Your members choose you for a reason — because they trust you to handle their financial needs with care and personalization. Large competitors exist in every community, yet members deliberately choose you. Yes, we face challenges as smaller institutions, but through perseverance and creativity, we can continue to serve as a lifeline for those who rely on us most.

I am honored to have recently been appointed to ACU’s Small Credit Union Committee, where my goal is to advocate for small credit unions, reduce unnecessary mergers driven by fear or uncertainty, and emphasize our critical role in the financial services industry. Additionally, I chair a newly formed CUSO, CUs Unite, founded by Scott Prior of Connection Credit Union in Washington State. Scott’s unwavering passion is to ensure small credit unions not only survive but thrive in the evolving financial landscape.

I know my small credit union makes a difference in our members’ lives, and I am confident yours does too. Together, we will continue serving the underserved, the financially vulnerable, and those in need of a trusted financial partner. Keep fighting the good fight. There has never been a more crucial time to highlight the advantages of small credit unions. 

Step up to the challenge. Your members appreciate your dedication, and the industry must support your continued service to those who need it most.

The $87 million-asset Marshfield Medical Center Credit Union is based in Wisconsin and serves 3,700 members.

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