3 Payment Problems That Signal It's Time to Modernize Your Credit Union's Payments Strategy
Let’s be honest:
running a credit union has never been more complex. Rising delinquencies,
higher costs and slower growth are squeezing margins across the industry.
According to NCUA data, the average return on assets rose slightly
to 0.76% through the second quarter of 2025, up from 0.69% a year earlier,
while non-interest expenses climbed 6.8% to $72.4 billion during the same
period. That leaves very little room for inefficiency—especially in payments,
one of the most operationally intensive—and most intensive—parts of your
business.
But here’s the thing: the biggest drag on profitability isn’t just the economic headwinds—it’s outdated payment systems. When members can’t pay easily, delinquencies spike, call centers get flooded and staff waste hours fixing errors that modern technology can prevent.
What’s worse, your members have a poor payment experience that leads to frustration and lost trust.
If any of these scenarios sound familiar, it’s time to take a closer look at your payment infrastructure. These three payment problems are warning signs that your credit union’s payments strategy is due for a serious update.
Payments Problem #1: Outdated payment options are
frustrating members and driving up costs
Members today live in a
multi-wallet world. They use debit cards, ACH, PayPal, Venmo—even cash. But too
many credit unions still limit how and where members can pay. That disconnect
leads to frustration, missed payments and a rise in delinquency that could have
been avoided.
Executives we’ve spoken with
describe their payment systems as “stuck in the seventies.” While others pay an
estimated $8 on payment-related calls just to process a
transaction manually.
That’s not sustainable—a...