Community Bank and Credit Union Trends 2025

Staying Relevant Amid Economic Uncertainty, M&A Growing Pains, and a Generational Disconnect

Download
Share
About This Report
Community banks and credit unions face rising delinquencies, margin pressure, and a disconnect with young consumers. As M&As accelerate, institutions must modernize tech and retain local trust to survive.
Table of Contents

Community banks and credit unions already faced slower growth and an aging customer base. Those challenges are now being compounded by macroeconomic pressure and a surge in merger and acquisition (M&A) activity. These institutions play an outsize role in lending to small businesses and rural communities, but their relevance is at stake.

Key Question: What key trends will most impact smaller financial institutions (FIs) in 2025 and beyond?

Key Stat: Credit union membership is declining at the smallest institutions—it’s down 7.8% YoY at those with less than $10 million in assets, per Q1 2025 National Credit Union Administration (NCUA) data.

This report can help you: develop product strategy (banks)

authors

Julia Woolever

Contributors

Lauren Ashcraft
Rahul Chadha
Director, Report Editing
Vladimir de Leon
Chart Editor
Eleni Digalaki
Kyndall Krist
Senior Copy Editor
Penelope Lin
Director, Data Visualization
Tiffani Montez
Amy Rotondo
Director, US Research
Emman Velasco
Chart Editor
Unlock Unlimited Insights with PRO+