Velera's Chuck Fagan and America's Credit Unions Scott Simpson discuss credit union issues at VeleraLIVE in Orlando, Fla. on April 15, 2026.
As mergers and acquisitions reshape the credit union landscape, industry leaders said consolidation is being driven less by choice and more by economic reality.
During a discussion on Wednesday during the VeleraLIVE conference in Orlando, Fla., Velera President/CEO Chuck Fagan and America's Credit Unions President/CEO Scott Simpson pointed to mounting pressures, from technology costs to regulatory demands, that are making it increasingly difficult for smaller credit unions to operate independently.
Simpson noted that the number of credit unions has steadily declined over the past two decades, mirroring a similar trend in the banking sector. However, unlike banks, credit unions face more limited pathways to launching new institutions, intensifying the long-term impact of consolidation.
"It is not getting easier to run a small credit union, it's getting harder," Simpson said, emphasizing that market forces, not just regulation, are driving mergers.
At the same time, both leaders pushed back on the notion that growth through mergers undermines the cooperative model. Instead, Simpson argued that scale can enhance member value, allowing larger institutions to reinvest efficiencies into better rates, services and technology.
Still, the shift has raised concerns about the future of community-based institutions. Simpson stressed that trade groups can advocate for proportional regulation and amplify small credit union voices, but cannot reverse broader economic trends.
Ultimately, he said, consolidation reflects member-driven decisions in a changing financial ecosystem.
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