Following the turbulence within the financial sector over the past year, credit unions have found themselves grappling with a pressing challenge: Deposit flight. The initial rush of outflows following the notorious regional bank collapses of 2023 has subsided, but financial institution leaders are still facing a fiercely competitive environment where every deposited dollar counts.

As smaller institutions encounter rising economic pressures, some consumers are looking for the stability of larger banks to safeguard their finances or seeking institutions that can provide them with the highest possible interest rates amid ongoing inflation and high costs of living. Meanwhile, a sharpening demand for top-notch user experiences has caused others to search for financial providers that can meet their digital needs in a more modern, convenient and compelling way. These pressures have left credit unions at a critical juncture, compelling them to reevaluate their strategies to not only survive but thrive in the current landscape.