Growth is the golden goal; but for credit unions, it’s not just about adding members or entering new markets. It’s about expanding while staying true to the values that built trust in the first place. Unlike national banks chasing national market share, credit unions walk a finer line: grow too fast or too broadly, and you risk becoming unrecognizable to your most loyal members. Play it too safe, and you might watch potential growth slip through your fingers. So how do you attract new members without alienating your core? The answer lies in segment strategy, identity clarity, and brand discipline.
Growth Isn’t a Straight Line—It’s a Web
Credit unions too often treat new member groups like isolated targets: Gen Z, small business owners, young families, underserved rural markets. But these segments don’t live in silos. They watch how you treat others, how your values show up in practice, and how much of your legacy brand you’re willing to dilute to “win” their attention.
New growth often sparks friction; not because expansion is bad, but because segments perceive value differently. And sometimes, they influence one another. If longtime members believe the credit union is losing its community-first identity by chasing tech-savvy metro-area influencers, they may question your authenticity. Worse, they might walk.
Understanding the relationship between member segments isn’t an academic exercise; it’s a competitive advantage. When you know how your members relate to each other, you can design experiences, offerings, and communications that foster coexistence—or at least avoid open conflict.
The Real Risk: Incompatible Member Segments
Let’s call it what it is: not every member segment can or should fit into the same tent. The most dangerous pairing? Segments that value completely different things and care deeply about who else is in the room. These are the incompatible segments that can tank your growth strategy.
Picture a credit union that built its legacy on serving blue-collar factory workers but now wants to attract remote tech professionals. The latter group values digital tools, speed, and self-service. The legacy members prioritize personal connection, cash-based transactions, and in-branch service. Unless the credit union finds a way to segment the experience, these groups will bump into each other and both will feel underserved.
A bold credit union doesn’t try to force harmony. It designs for separation.
The 10XCU™ Playbook: Separate to Grow
One 10XCU™ did this brilliantly. With roots in a deeply rural area, its growth strategy focused on entering a booming university town 60 miles away. The member demographics? Polar opposites. Legacy members wanted face-to-face service, community events, and low-cost, low-tech products. The university segment expected mobile-first experiences, lightning-fast lending, and a brand that didn’t feel like a relic.
Instead of diluting the brand for both, the credit union launched a second brand under its charter: completely different name, aesthetic, and tone. Same back office, different front door. They even housed it in a coworking space and staffed it with people fluent in startup culture.
The result? The new segment flooded in. The original members never noticed a thing because their experience didn’t change. This wasn’t masking the brand. It was managing it with surgical precision.
Leaders vs. Followers: Know Who Drives Your Brand
Some segments shape your identity more than others. These “leader” segments influence how the brand is perceived by everyone else. Followers come along for the ride, but they’re only there because the leaders make the brand aspirational.
Smart credit unions elevate their leader segments. If your most vocal, values-driven members are teachers, treat them like royalty. When others see how you celebrate them, they’ll follow. But lose focus and start building your entire brand around broader, less sticky audiences? Both groups walk.
Growth Means Some Members May Not Come Along
Strategic growth often requires change, and change doesn’t always sit well with every member. As credit unions evolve to serve broader, more diverse, or more digitally engaged communities, some legacy segments may not align with the new direction. That’s not a failure. It’s a natural result of progress.
Some members may find that the credit union no longer meets their needs in the way it once did. Others may resist new technology, different service models, or a shift in tone that feels less familiar. When that happens, the goal isn’t to appease everyone; it’s to honor your mission while building for the future.
The most strategic credit unions understand that trying to be everything to everyone only dilutes their impact. Instead, they focus on building deep, lasting value with the segments most aligned to their future vision. That sometimes means accepting that a portion of the membership may choose a different financial partner—and that’s okay.
Real loyalty isn’t about freezing time. It’s about staying true to purpose, even as you grow into new opportunities. Growth isn’t disloyalty to the past—it’s a commitment to remain relevant in the future.
Jeff Rendel, CSP, is a leading strategic advisor and a trusted partner to growth-minded institutions. He helps credit unions navigate change with clarity, confidence, and competitive edge. Learn more: jeffrendel.com; jeff@jeffrendel.com; 951.310.7275.