Leaders from the industry’s mid-sized credit unions — those ranging between $200 million and $1 billion in assets — recently gathered for the 2025 Mid-Sized Credit Union Forum, an exclusive event where CEOs and key leaders shared strategies on everything from regulatory defense to integrating artificial intelligence.
This year’s forum was held after REACH in Palm Desert, CA, providing leaders with an opportunity to tackle the most pressing issues facing their organizations today.
Each year’s forum is designed to address the distinct opportunities and challenges of this vital group of credit unions. As Executive Vice President and Executive Director of Fuel Solutions Larry Palochik noted, the middle-asset tier has always included a collaborative and forward-thinking group of credit union leaders who face unique circumstances, emphasizing their special role in local communities.
Palochik opened by focusing on collaborative problem solving, eliciting hard-won lessons on leadership, performance, and growth from attendees. The conversation dove into topics including regulatory concerns, technology adoption, and a rapidly evolving fraud landscape.
Part of the discussion focused on how mid-sized credit unions are defending their value proposition and executing community mandates in a complex regulatory environment. The discussion was introduced with an industry update from former California’s Credit Unions and Nevada’s Credit Unions President and CEO (and current America’s Credit Unions President and CEO) Scott Simpson, centering on defending the position of credit unions.
This topic zeroed-in on the state pressures relating to Community Reinvestment Act (CRA) legislation, as well as the importance of communicating to consumer groups that credit unions are already on their side. Simpson also touched on the trend of credit unions migrating from a state charter to a federal charter, and vice versa.
The role of credit unions in crisis was spotlighted by Gary Perez, CEO of USC Credit Union, who updated the group on efforts to help 500 members return to their Altadena, CA homes following devastating wildfires earlier this year. His efforts highlighted the power of collaboration, as he shared the story of his credit union’s partnership with a Community Development Financial Institution (CDFI) consortium.
CEOs also reviewed participation in the Bank On program to further financial inclusion.
When it comes to financial risk and performance, leaders shared insights on immediate and future financial health indicators, guided by reports and key performance indicators (KPIs).
It was noted that mid-sized credit unions, especially in the $500 million to $1 billion asset range, were outperforming their peers in three out of four growth measurements. The group also discussed loan growth in most categories, as well as the continued drop in loan balances in new and used autos for the second year in a row.
The dynamics surrounding Internal Revenue Service (IRS) interest rate deductions was also a special topic, focusing on member qualification criteria. Looking ahead, strategic goals included focusing on core deposit strategies, developing better reward cards for credit and debit products, and exploring a student lending CUSO (Credit Union Service Organization).
Some of the most forward-looking discussions focused on operational security, efficiency, and the responsible adoption of emerging technologies. With account takeovers becoming more sophisticated, credit unions are actively seeking shared defense mechanisms. This includes implementing new retraining programs for staff to look for fraudulent checks.
Digital defense is also important, as “spoofing” and online account takeovers are problems. To mitigate these risks, some credit unions reported using tools like BioCatch. The creation of fraud mitigation teams and sharing intelligence across credit unions was deemed invaluable for fighting threats, with TruStage noted as a resource for fraud and risk training.
Artificial intelligence was also a major topic. Leaders acknowledged its promise and its risks, particularly in human resources. Road-mapping needs to happen before automation efforts begin, ensuring efficient processes are targeted first.
Many mid-size credit unions are engaging consultants to help understand, implement, and govern the use of AI. For analytics and efficiency, credit unions are actively using or exploring platforms like Microsoft Copilot and Microsoft PowerBI. The massive potential and accompanying issues of call center AI automation remains a primary question and focus area.
The peer-level discussion also addressed internal operations and sustainability when it comes to their human capital. Attention was paid to overtime issues and making sure exempt versus non-exempt employees are correctly classified based on their actual duties, not just job descriptions. To innovate on organizational structure, some credit unions are exploring the use of fractional executives to share C-level resources and expertise.
This year’s forum provided a unique dialogue for peer collaboration. It remains an effective way for mid-size credit union leaders to talk about future growth opportunities, challenges, and most importantly, opportunity. California’s Credit Unions and Nevada’s Credit Unions wants to thank every leader who took the time to attend, engage, and share their stories.
