From resilience to relevance: Inside the credit union shift, straight from the experts

As regulatory demands increase and financial pressures mount, credit unions across the UK and Ireland are facing a double challenge: growing complexity, but also a growing determination to adapt and lead.

This year’s Credit Union Outlook Report 2025, produced by Drova in partnership with the Swoboda Research Centre, distils the insights of 18 senior credit union leaders alongside survey data from 51 institutions across the UK and Ireland. The result is a uniquely detailed look at a sector under pressure, but far from standing still.

While many financial narratives focus on consolidation, decline, or digital catch-up, this report tells a more nuanced story: one of cautious ambition, operational reinvention, and community-first resilience.

A sector responding on its own terms

The report is not a sector snapshot. It’s a temperature check spanning six critical areas shaping credit union futures: governance, compliance, digital transformation, risk, sustainability, and growth.

In Scotland, Dermot O’Neill of the Scottish League of Credit Unions calls for frameworks that scale with capacity, not just intention: “One size does not fit all, and we should stop pretending that it does.”

In Northern Ireland, Martin Fisher of the Irish League of Credit Unions urges caution on ESG compliance: “We’re seeing low green finance uptake and fragile trust. Requirements must be introduced with support, not assumption.”

At Stockport Credit Union, John Haslam is reframing compliance as a cultural tool: “Proportionality is key. Governance should enable innovation, not shut it down.”

Boards are changing - and so is oversight

Only 50% of credit unions say their boards provide effective risk oversight. The report unpacks what’s behind that gap, and how forward-thinking institutions are closing it.

At Capital Credit Union, interim CEO Samantha Homer has driven a structured board effectiveness review, appointing a former CRO to lead risk and investing in shared services to support smaller credit unions. At PCCU, Magda Niemczyk argues that “regulation helps us get better, not just safer.”

Mark Ryan at Core Credit Union offers a more granular view, tracking daily risk tasks with embedded software so that governance becomes lived, not logged.

Risk, resilience, and real-time reality

The report also highlights rising concern around operational risk, with 62.7% of credit unions ranking it a top threat. Yet only 58.8% are using a GRC or digital compliance platform.

At Tullamore Credit Union, Matt Worgan is mapping third-party exposure across 70+ vendors, tightening data oversight and contract terms. And at Pennyburn Credit Union, Frank Doherty is embedding cyber expertise into board governance, proving that smaller institutions can lead on digital risk maturity.

Digital without detachment

While the pace of transformation varies, the direction is clear: digital is no longer optional. It’s expected.

No1 CopperPot Credit Union’s Caroline Domanski says the organisation’s 2025 strategy is focused on embedding fintech infrastructure into its operating DNA. “Members want relevance and convenience, and we’re designing for both.”

Beacon’s Gareth Heesom, who also led a major rebrand, echoes the sentiment: “We’re digital-first, but still deeply personal. Every decision is about keeping that balance right.”

Mark Ryan at Core adds that branches now serve more as “advice hubs” than transaction points, underscoring the shift from access to insight.

Mike Barry of First Rate Credit Union calls out the opportunity in automation and AI, but flags the leadership gap as a barrier: “We need to get ahead of this now, not wait until others redefine the market.”

ESG is growing up

One of the most striking findings in the report: only 27.5% of credit unions say they currently have a formal ESG or climate risk framework. Yet nearly all respondents say sustainability matters - and most are already taking steps in that direction.

At Comhar Linn INTO Credit Union, Sean Murray sees the “S” in ESG as already baked into the credit union model. “We’re here to serve, not extract. But we need to make that visible, measurable, and modern.”

Chris Canham says Hoot’s social enterprise recognition has helped turn values into visibility, while Gareth Heesom is doubling down on member education to embed financial resilience as an ESG outcome.

The future: resilience, not replication

Survey responses also point to a future built on collaboration, not competition. 86% of credit unions see partnerships or service organisations (CUSOs) as a critical component of future resilience.

And it’s already underway. Matt Bland of The Money Co-op is exploring mergers and CUSOs to build scale in car finance and payroll savings. “Growth isn’t about numbers; it’s about capability and clarity,” he says.

Thank you to all our contributors

This report wouldn’t be possible without our 18 contributors, each offering an unfiltered lens into the realities of leadership across credit union types, sizes, and geographies. Thank you to all our experts at Swoboda Research Centre, Beacon Savings & Loans, Alexander Sloan LLP, Hoot Credit Union, The Money Co-op, Association of British Credit Unions (ABCUL), Pennine Community Credit Union, Irish League of Credit Unions, No1 CopperPot Credit Union, Capital Credit Union, Scottish League of Credit Unions, Core Credit Union, Stockport Credit Union, First Rate Credit Union, Ballymena Causeway Credit Union, Comhar Linn INTO Credit Union, Tullamore Credit Union, and Pennyburn Credit Union.

The result is more than your standard sector report, but a shared strategic reference point for the sector. Whether you lead strategy, risk, compliance, or community growth, The Credit Union Outlook Report 2025 offers grounded insight into what credit unions are doing differently - and why it matters now.

Download the full report here