The credit union landscape has shifted dramatically over the past few decades.

Forty years ago, credit unions were gaining momentum as consumers sought alternatives to traditional banks. To stay competitive and attract members, many credit unions pursued aggressive mergers and consolidations to gain scale. The result was a massive reduction in the number of credit unions across the United States.

Scale brought financial strength, but it also carried a cost. Innovation slowed. The “credit union difference”—the very ethos that once set these cooperatives apart—began to fade. As institutions grew, they adopted the look, feel, and mindset of the banks they once positioned themselves against.

Today, it’s harder than ever to explain how credit unions differ from banks. The narrative feels stale, especially in a landscape dominated by billion-dollar institutions where personal relationships have taken a back seat to asset size and growth metrics. What was once a movement rooted in community and collaboration has, at times, slipped into a race for scale at the expense of member service. In that race, there were no true winners—only the members and communities left underserved.

Lost in this shift was a foundational principle of the credit union movement: a commitment to being different, and to innovating in service of that difference. Innovation for its own sake is meaningless. But innovation anchored in member benefit is essential. For years, credit unions adopted a bank-like posture under the assumption that this was the only viable path to survival. I would argue the opposite: our survival now depends on being boldly unlike banks, particularly in the areas where banks refuse to tread because of their fixation on profit.

We must recommit to putting people over profits—not in a naïve or sentimental way, but as a strategic imperative. Financial strength is essential, yet it does not have to come at the expense of member financial wellness. We have lost our nerve, grown complacent, and become—let’s be honest—boring. The industry once brimming with pioneers, rebels, and dreamers has drifted toward sameness. If we want to regain our relevance, we must resurrect that spirit.

Where do we begin? By returning to the fundamental question: What do members actually want and need? Above all, they want financial freedom—freedom from anxiety about money, and tools that help them stretch every dollar. Too many Americans live paycheck to paycheck. Too many feel financially powerless. Historically, credit unions thrived because they offered individuals more control over their money than banks ever had. After the Great Depression, credit unions emerged precisely because banks had failed to safeguard the financial wellness of everyday people.

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That opportunity is still before us. Most Americans want a financial partner they can trust—an institution that has their back, reduces their stress, and actively supports their financial health. We could be that partner. But doing so requires far more than marketing slogans and generic financial-literacy videos. It requires an industry-wide transformation.

Credit unions must offer differentiated products and services designed explicitly to improve financial health and wellness. Staff should be trained not merely to cross-sell, but to coach—helping members build credit, manage spending, create budgets, and develop long-term confidence in their financial decisions. If we view each member as a patient we are helping to become financially fit, we change the entire dynamic. And importantly, this is not charity work; financially healthy members ultimately strengthen the institution’s financial performance.

Here lies the opportunity to be fundamentally different from banks. Many of the innovations that could transform members’ financial lives will never be adopted by banks because they do not maximize short-term profit. Credit unions can measure success differently—not by counting “profitable members,” but by counting financially healthy members. With the right technology, we can reintroduce personalization at scale and use digital tools to amplify the cooperative difference rather than erase it.

Financial health and wellness have long been treated as a nice-to-have in the financial industry—something to address with occasional classes, brochures, or seminars. But this is just scratching the surface. Money shapes nearly every aspect of a person’s life. Helping members build mastery over their finances can change their futures. Doing this well requires understanding their lives holistically, not just responding to isolated financial events. Members want trusted advisers who will help them navigate the complexities of modern financial life.

If credit unions embrace that role—if we choose to be bold, innovative, and true to our founding mission—we can reclaim our competitive edge. Perhaps the opportunity can be summed up in a single idea: