Executive Summary

The U.S. economy is showing signs of stress in 2025 - tariff-related volatility, high interest rates, and persistent inflation have made consumers cautious and credit unions more operationally strained. According to the Federal Reserve, consumer credit card debt has surpassed $1.13 trillion (about $3,500 per person in the US), while personal savings rates remain below pre-pandemic levels. As a result, members are holding back on borrowing and spending, directly impacting credit union growth strategies.

This white paper offers practical strategies to grow during economic slowdowns - re-engaging hesitant members, improving operational productivity, and using cross-sell strategies that build trust instead of pressure. These strategies are made possible when credit unions activate the data they already have - turning it into insight, timing, and action.

Understanding the Current Landscape

In 2024, credit union membership grew just 2.8%, a slowdown from the 4.1% growth in 2022. Loan growth has been similarly moderate - expected to hit 6% in 2025, up from 3% in 2024 but still well below the 10-year average of 7%.

Meanwhile, the cost of funds has doubled since 2022, and delinquency rates on consumer loans have reached 0.81% - the highest since 2011. These headwinds are forcing credit unions to reallocate resources and reconsider traditional growth strategies.

Member Engagement in a Spending Slowdown

Research shows that during economic downturns, consumers reduce discretionary spending by up to 25% and delay financial commitments such as auto loans and home equity lines in this climate, personalized engagement matters more than ever - but only when it is grounded in member behavior and actual needs.

Credit unions that monitor transactional behavior, account dormancy, or digital activity patterns can identify subtle shifts signaling disengagement. For example:

• A 20% drop in debit card usage can predict a member’s likelihood to close their account within 60 days
• A member who has not logged into online banking in 45+ days is 4x more likely to become dormant

By using tools that detect these signals and trigger timely, relevant outreach, credit unions can keep members engaged - without pushing unnecessary products.

Cross-Sell Tactics That Build Trust

Cross-selling in today’s economy must be data-driven, not pressure-driven. According to McKinsey, consumers are 3.5x more likely to accept financial offers when they feel tailored to their specific life circumstances. However, only 16% of financial institutions feel confident in their ability to personalize offers at a certain scale.

The opportunity is clear: use internal data to identify not just who might benefit from a product but when they are most likely to say yes. Consider:

• Members with three or more products are 75% more likely to stay loyal to their institution
• Members who receive a relevant product offer within 90 days of joining are 2x more likely to open a second account.

When implemented responsibly, smart cross-sell strategies help members improve their financial well-being - and keep your credit union top of mind during uncertain times.

Productivity Where It Matters Most

Labor efficiency is one of the clearest paths to stability and growth in lean environments. A study by Cornerstone Advisors found that the average credit union employee spends 19% of their time manually compiling reports, checking siloed systems, or managing duplicate data.

Reallocating even 5–10% of that time can produce a major impact. For example:

• Automating incentive tracking alone can save up to 1,200 hours per year at a mid-sized CU
• Branch managers who use consolidated dashboards resolve member issues from 15-28% faster on average.

By streamlining reporting, aligning incentives to real goals, and equipping teams with the right data, credit unions can stretch every minute further - without compromising service.

Rethinking Growth: A Strategic Shift

Despite efforts, many credit unions have failed to meet long-term growth goals. According to a 2023 NCUA benchmarking study, only 41% of federally insured credit unions increased their total market share over the prior two years. And with FinTech’s expanding into lending and savings products, the pressure to differentiate has never been higher.

Data activation and strategic agility are no longer optional - they are essential. Whether it is proactively retaining members, deploying staff where they make the most impact, or aligning campaigns to the economy’s rhythm, credit unions must lean into their core differentiators: community knowledge, trust, and member-first values.

The Datava Difference:

Member Engagement When Money Is Tight

Datava’s platform is designed to activate your data in real-time. With members becoming more cautious about spending or investing, our technology helps identify subtle behavior shifts - like increased balance holding or changes in transactional frequency - signals an opportunity for re-engagement.

We help credit unions deliver:

• Highly personalized messaging for relevant products at the right time
• Behavior-based automation to reduce marketing waste
• Smart segmentation to match low-cost services to member needs.

Even in economic slowdowns, we have helped clients like American Heritage Credit Union grow. During the COVID-19 pandemic, AMH leveraged Datava to launch proactive campaigns, shift member conversations digitally, and optimize staff workflows - resulting in billion-dollar growth when many were stagnating.

Cross-Selling in a Conservative Economy

In an economy where upselling can feel tone-deaf, Datava helps your teams cross-sell responsibly - with data-informed conversations that actually meet members where they are. Our platform supports:

• Product-fit modeling for high-probability opportunities
• Real-time prompts for frontline staff during interactions
• Visual dashboards to track which campaigns are moving the needle.

By focusing on need-based cross-selling over aggressive pitches, credit unions can drive engagement and loyalty - even when wallets are tight.

Every Minute Counts: Raising Staff Productivity

With leaner teams and tighter budgets, efficiency is essential. Datava was built to reduce time spent on manual reports, disjointed systems, and reactive workflows. Instead, we enable:

• Single-pane-of-glass interfaces for faster decision-making
• Automated task tracking and incentive alignment
• A library of prebuilt reports and dashboards to reduce onboarding time and accelerate results.

Final Thought

Credit unions do not need to sit on the sidelines during this economic cycle. With the right tools and insights, they can engage more meaningfully, operate more efficiently, and grow with intention. By leveraging data and focusing on prompt member needs, the most forward-thinking institutions will lead the industry into its next chapter - no matter the economic climate. If your credit union is ready to grow with greater intention, we would welcome a conversation. Connect with us at datava.com/contact or email us at hello@datava.com to learn more.