The credit union industry is currently navigating a changing landscape characterized by intense competition and a pressing need for sophisticated capital and liquidity management. A Wolters Kluwer Credit Union Digital Transformation online survey from August 2025, which polled more than 2,500 credit union professionals across the country on various topics, offers a clear snapshot of this environment, revealing a compelling dual narrative. On one hand, there is a moderate embrace of digital lending tools; on the other, a strong, growing interest in advanced financial strategies like securitization, which is currently hampered by significant knowledge gaps.
The key trends emerging from this data underscore where credit unions are succeeding and, more critically, where they must focus their strategic energy to thrive in the years ahead.
The move to digitization is no longer a strategic differentiator but a baseline expectation for members. The survey confirms that credit unions are stepping up, but primarily with foundational tools. It found electronic signatures for loan documents stand out as the most widely adopted digital tool, used by over half (53.8%) of respondents.
This adoption reflects a practical and essential first step in modernizing the lending process. However, the adoption of more advanced digital technologies shows a significant lag. For instance, less than a quarter of respondents use online credit or loan applications, and only a scant 10.7% have adopted a digital or eVault. This creates a vulnerability, as traditional banks and fintech startups are aggressively targeting credit union members with innovative digital services that many struggle to match due to core system limitations. The path to full digital transformation is clearly still unfolding, and credit unions must accelerate the adoption of these advanced tools to remain competitive.
The Securitization Momentum: A New Capital Strategy Focus
While navigating the complexities of digital adoption, credit union executives are simultaneously focused on strategic decisions around capital and liquidity. The data points to a massive, emerging trend in the form of securitization issuance. When asked about their capital and liquidity strategies, securitization issuance was among the most common, alongside the use of the NCUA's Central Liquidity Facility (CLF) and pledging to the Federal Home Loan Bank. This diversified approach shows credit unions are actively seeking ways to manage liquidity.
The momentum behind this strategy is undeniable. A substantial 28% of credit unions surveyed are already actively securitizing loans, according to the survey. Even more striking is that nearly 44% are considering issuing securitizations in the next two years. In total, over 70% of credit union executives are either actively involved in or planning to be involved in securitization. This strong upward trend signifies a pivot in strategic thinking, where securitization is viewed not as a niche tool but as a crucial component of future financial stability and growth.
Asset Classes and the Critical Knowledge Gap
The survey sheds light on where credit unions are focusing their securitization efforts. Consumer loans (28.9%) and mortgage loans (20.3%) are the most commonly targeted asset classes for securitization. This concentration suggests that these categories are viewed as scalable and aligned with existing market practices. Importantly, this focus on consumer and mortgage assets aligns strategically with other liquidity channels, as these are also the most common assets for buying/selling strategies and pledging strategies.
However, the very momentum toward securitization is running headlong into a significant obstacle: A knowledge gap concerning digital implementation. The primary reason cited by those not using an electronic vault was confusion about the process of digital securitization (43.9%).
This confusion about the digital process, specifically regarding eNote infrastructure and digital vaults, acts as a critical barrier to fully leveraging these complex strategies. Credit unions recognize the necessity of securitization as a capital and liquidity strategy but are struggling to translate that interest into a secure and compliant digital framework. This disconnect underscores a clear and critical need for greater education and guidance in this area.
Strategic Alignment for the Future
The survey results paint a picture of an industry at an inflection point. Credit unions are being pulled in two directions: They must rapidly close the digital adoption gaps in lending to meet member expectations and fend off fintech competition, while simultaneously embracing sophisticated capital strategies like securitization to manage liquidity and fuel growth.
For credit unions to succeed, these two imperatives must merge. The strong interest in securitization, combined with the low adoption of the necessary digital vaults, highlights a singular opportunity for leaders: To strategically invest in the technology and education that will bridge this gap. Closing the knowledge deficit around digital securitization is the single most important action credit unions can take to fully unlock the potential of these critical capital strategies and secure their competitive position in the evolving financial landscape.
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