The credit union movement thrives on the diversity of its institutions. Yet in recent years, the smallest credit unions—often the most deeply rooted in underserved communities—have been disappearing at an alarming rate. Hundreds have merged or closed, leaving some neighborhoods without financial partners who truly understand their needs. This steady decline isn’t happening because these credit unions lost their passion or purpose. It’s largely due to challenges beyond their control: mounting regulatory requirements, rising technology and compliance costs, and difficulty attracting new leadership have made it increasingly challenging to operate a small credit union. As a result, many have felt pressured to merge into larger institutions just to survive.
Every credit union leader—whether you run a $50 million community charter or a $5 billion federal institution—should care about this trend. Why? Small credit unions are the embodiment of the credit union mission.
They disproportionately serve people of modest means, niche communities, military families, and rural or low-income areas that big banks often ignore. When a small credit union vanishes, it’s not just a lost business—it’s a community losing a trusted partner. Members left behind often have no choice but to turn to high-cost alternatives or impersonal big banks. The credit union difference we all champion—people over profit, local service, financial inclusion—is dimmed every time one of these institutions fades away.
A collective responsibility for equity and inclusion
The credit union industry has long prided itself on principles like cooperation and concern for community. Now is the time to truly live those values by rallying behind our smaller institutions. The sixth cooperative principle, “cooperation among cooperatives,” calls on us to support one another—big and small—to strengthen the whole system. If large credit unions and industry groups fail to lift up the smaller ones, we risk undermining the very philosophy that justifies our tax-exempt status and public trust. Lawmakers and consumers take note of whether we “walk the walk” on our motto of People Helping People. Ensuring that all credit unions, regardless of size, have a voice and a chance to thrive is not just altruism—it’s strategic. It preserves the narrative that credit unions are different from profit-driven banks and remain committed to serving all communities, not just the most profitable ones.
We often celebrate how credit unions band together in crises or advocacy. That same spirit of unity must apply within our own ranks.
Larger credit unions benefit when the overall movement stays strong and broadly representative. No matter how big your credit union grows, you began as a small institution once—and you likely still serve members today who rely on credit unions because no one else will serve them fairly. By mentoring small credit union leaders, sharing resources, collaborating on back-office services, or supporting initiatives that ease regulatory burdens, big credit unions can ensure the smallest survive and continue their outsized impact.
Preventing the “big vs. small” divide in advocacy
One area of concern has been the balance of power in industry advocacy. In many trade associations, influence can track closely with asset size—the bigger the credit union, the bigger the say. It’s an open secret that traditional dues structures (often based on a percentage of assets or member count) mean large credit unions pay vastly more and thus can end up commanding more attention. As one small credit union CEO frankly noted, too often trade groups end up “focusing their energy on advocacy that helps the big credit unions get even bigger, rather than the specific regulatory relief small credit unions need”.
This sentiment is echoed by many leaders of modest-sized institutions who feel drowned out by the sheer scale of the largest players. If left unchecked, such dynamics risk creating a “big vs. small” divide in our movement, where advocacy priorities skew toward those of the giants while the unique challenges of small credit unions get sidelined.
We cannot allow the voices of smaller credit unions—which make up the majority of institutions—to be silenced in the halls of power. The credit union system’s credibility in Washington, D.C. depends on showing that we represent all our 140-million-plus members, not just those served by a handful of mega-credit unions. Moreover, many issues that threaten small credit unions (like overbearing compliance costs or examiner practices) ultimately harm the system’s diversity and local reach. If small credit unions go extinct, the entire movement loses something irreplaceable: its grassroots touch and its moral compass. That’s why maintaining an even playing field in advocacy isn’t just fair—it’s essential for our long-term survival.
DCUC’s Dues Model: Ensuring every voice counts
A powerful example of “walking the walk” on inclusion is the Defense Credit Union Council’s approach to membership dues. DCUC recognized that a typical dues formula—where larger credit unions pay exponentially more—could inadvertently let finances dictate whose concerns get prioritized.
To counter this, DCUC implemented a capped and limited dues structure that prevents any large institution from dominating simply because of size. In fact, DCUC offers an affordable flat “limited” membership rate capped at $3,000 per year, with even lower fees for the smallest credit unions. You won’t find a better deal in the industry, and that’s by design. By consciously capping dues, DCUC ensures that a billion-dollar credit union contributes the same maximum investment as a mid-sized peer, leveling the financial playing field in a way unheard of in other associations.
What does this mean in practice? It means DCUC isn’t beholden to a few large credit unions writing outsized checks. Every member—no matter how large or small—is valued and heard without a calculation of “who pays the most.” This dues democracy translates into a more balanced advocacy agenda. Issues affecting small credit unions (which might otherwise be overlooked) stay front and center alongside the concerns of larger institutions. It’s part of a broader commitment to represent all members fairly and fiercely. As DCUC’s leadership proudly notes, even after launching this new dues structure, they have kept “membership dues the lowest in the industry” because they believe advocacy should be both impactful and accessible. Accessibility here means that even the smallest credit union can afford to be at the table, and no goliath can buy extra chairs.
By removing finances as a barrier, DCUC empowers small credit unions to maintain a prominent voice in policy conversations. Larger credit unions still lend their significant perspectives and expertise, but they do so as collaborators rather than overshadowing benefactors. Importantly, the capped-dues model prevents advocacy priorities from being set based solely on the biggest contributors’ wish lists. Instead, priorities emerge from consensus across the membership—a membership that now spans institutions of all sizes on equal footing. This model exemplifies how a trade association can “walk the walk” of our cooperative ideals: DCUC not only talks about unity and inclusion, it structurally bakes those values into its funding and governance. Other industry groups would do well to consider a similar approach to amplify smaller voices rather than marginalize them.
Standing united to strengthen our future
At its heart, supporting small credit unions isn’t about charity—it’s about strengthening the entire credit union ecosystem. When we make space for the smallest institutions to thrive and be heard, we reinforce the notion that credit unions truly serve every segment of society. We also send a powerful message to policymakers: that we are serious about financial inclusion and not just looking out for the biggest players. Trade associations like DCUC are setting the tone by embracing equitable models and championing all their members. It’s now up to credit union leaders everywhere to follow suit in deeds, not just words.
Imagine an industry where no credit union—regardless of size or charter—feels left behind or voiceless. That is a movement that can face any challenge with unity and confidence. Whether you lead a defense credit union, a community development credit union, or a nationwide institution, remember that our fates are intertwined. In the credit union world, bigger doesn’t survive by eliminating smaller—we survive by uplifting them. Every time a small credit union innovates a solution for a member in need, or a large credit union stands up for regulations that help the little guys, our entire movement grows stronger.
In practical terms, this means getting involved and speaking up for small credit unions. Support the causes that matter to them, ensure your state and national associations prioritize them, and consider directing resources to programs that help them modernize and comply with regulations. If you’re part of a larger credit union, use your influence to champion proportional representation and fair dues in the organizations you belong to. Encourage your teams to partner with smaller credit unions on projects or share best practices. These gestures aren’t just feel-good niceties—they are investments in the resilience of our movement’s infrastructure.
Finally, as leaders, let’s foster a culture where every credit union counts. The next time you hear of a small credit union closing or merging, think about what could have been done to save it—and then act so we don’t lose the next one. Our founding pioneers built this movement from tiny cooperatives in church basements and army barracks. We honor that legacy not by focusing only on how large we can grow, but by ensuring the small remain a vibrant, dynamic force for good. If we truly believe in “Not for profit, not for charity, but for service,” then we must ensure those who exemplify that credo on the smallest scale have the loudest champions. By supporting small credit unions today, we safeguard the soul of the credit union movement for generations to come.
Let’s all recommit to this principle—in our advocacy, our dues structures, and our daily decisions—and in doing so, keep the credit union difference alive and well across institutions of every size. When the smallest among us succeeds, the entire credit union family wins.
