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.
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