Every quarter, Callahan drops its Trendwatch Report, and the CU world collectively scrambles to see if the sky is falling or if members are just asking for higher CD rates again. The Q2 2025 edition brings a mix of optimism (loan growth is back!), concern (membership growth is crawling), and déjà vu (inflation still not fixed, tariffs still looming).

The good news? Credit unions are resilient. The challenge? Growth is harder to come by, and members are demanding more value. Let’s unpack the numbers, add some wit, and show how we at Algebrik AI are adjusting our product roadmap to keep CUs future-ready.

Callahan shows CU membership growth is at its slowest pace in 14 years, just 2%. That is fewer new members than the line at Starbucks at 2 PM.

New member acquisition cannot be the only growth lever. With slowing inflow, deepening relationships with existing members is mission-critical.

How we are responding

We are doubling down on guided borrower flows, cross-sell intelligence, and digital account opening. Think of it as your loan origination system whispering, “This auto loan member might also be perfect for a HELOC,” while your DAO makes onboarding feel instant and effortless. Together, they turn every new account into the beginning of a deeper relationship. More engagement, less chasing.

Loan growth rebounded to nearly 4% YoY, while shares popped 5% YoY. Translation: members are finally back in the borrowing mood after sitting on their wallets in 2024.

CUs should absolutely lean into the rebound in loan demand, but they cannot treat it as a blank check. Growth for growth’s sake is dangerous - chasing volume without managing credit quality is like drag racing without brakes. It might feel like a win in the short term, but the aftermath can undo years of careful balance sheet building. The smarter path is to ride the wave while keeping underwriting sharp, pricing aligned to risk, and capital strong enough to absorb bumps along the way.

Algebrik Roadmap Response

We have enhanced our Decisioning Engine with Champion-Challenger testing and risk-based pricing modules, giving lenders the agility to adapt policies in real time. But our focus is not only on the decision itself, it is on reimagining the entire origination process. From Digital Account Opening that removes friction at the very first touchpoint, to guided borrower flows that keep applicants engaged, to omnichannel POS experiences that ensure continuity across branch, web, and mobile, we are building an origination journey that balances speed with discipline. The result: faster approvals when the data supports it, smarter declines when risk runs hot, and a process that deepens trust rather than testing it.

The average member relationship hit $24,348, the highest level ever. Members are entrusting CUs with more of their financial lives, if CUs can keep them happy.

A record-high average member relationship means members are entrusting CUs with larger portions of their financial lives. This reflects deeper product penetration and stronger wallet share. The opportunity is clear: with more products under one roof, members are more connected and more valuable. The challenge is that expectations rise alongside balances. Members now demand seamless journeys across channels, consistent service quality, and personalized experiences that match the level of trust they are placing in their CU.

How we are Responding

At Algebrik, we see rising average member relationships as both validation and responsibility. Members are giving CUs a larger share of their financial lives, and that means origination and servicing experiences cannot afford to feel fragmented. Our Digital Account Opening ensures that new deposits or credit lines are opened in minutes, not days. Guided borrower flows help members navigate lending products with clarity, reducing abandonment. Cross-sell intelligence surfaces the right next product at the right time, whether it is a HELOC or an auto loan bundled with insurance. Our omnichannel POS makes it all feel like one continuous journey, whether the member starts online, in-branch, or through a partner. Finally, our Portfolio Analytics highlight members with strong balances but underutilized credit relationships, giving lenders actionable insights to expand engagement. The outcome is not only stronger wallet share but also a member experience that justifies it.

Delinquencies are edging higher, even if charge-offs have flattened. Rising consumer stress could be a storm cloud.

Now is the time for proactive monitoring. Waiting until delinquency hits the balance sheet is like ignoring the check-engine light.

Algebrik Roadmap Response

We have integrated real-time portfolio analytics that trigger alerts when borrower behavior changes. Lenders see risks early and can act before loans sour. These insights are not limited to delinquency signals, they also flag shifts in utilization, deposit flows, or credit appetite that might indicate stress. By combining early warning indicators with automated next-best actions, CUs can move from reactive collections to proactive member support, protecting both financial performance and member relationships.

Certificates and money market accounts are driving share growth, with CDs surging over 30% YoY. Members want yield, plain and simple.

Members will move their money for yield, so retention strategies must go beyond rate wars. Think digital engagement, financial wellness, and frictionless access.

Algebrik Roadmap Response

We have embedded personalized savings nudges directly into borrower and depositor journeys. If a member is about to churn to chase a higher CD rate, your LOS will already know and suggest alternatives that align with the member’s goals. These nudges can include recommending competitive internal products, highlighting bundled value propositions, or guiding members toward longer-term relationships instead of rate-chasing behavior. By turning data into timely, relevant suggestions, CUs can protect balances, strengthen loyalty, and reinforce their position as the trusted primary financial partner.

Certificates and money market accounts are driving share growth, with CDs surging over 30% YoY. Members want yield, plain and simple.

Margins are saving the day, but the cushion can shrink quickly if delinquency spikes. Strong capital today should fund transformation, not just sit idle.

Algebrik Roadmap Response

We are prioritizing AI-assisted underwriting automation, helping CUs cut costs while still growing responsibly. Every saved basis point matters, especially when margins are under pressure. Our platform reduces manual review by classifying routine applications for instant decisions while routing complex cases to loan officers with AI-generated summaries. By integrating third-party data sources in real time and applying consistent credit policies, CUs can shorten cycle times, reduce operational expense, and scale lending without proportionally increasing staff. The result is not only lower cost per loan but also a stronger, more resilient origination engine.

Callahan’s Q2 2025 Trendwatch makes one thing clear: growth will no longer be about simply adding members. It is about doing more with the members you already have, managing risk smartly, and creating experiences so seamless that your members never look at the competition’s app again.

At Algebrik, our roadmap is aligned:

• Smarter decisioning to handle risk in volatile times
• Guided borrower flows to boost product adoption
• Omnichannel journeys to deepen relationships
• Real-time analytics to flag risks before they escalate

The CU industry is shifting from growth by numbers to growth by depth. And we are here to make sure you do not just survive the shift, you lead it.