As we begin 2025, credit unions continue to face a rapidly evolving financial landscape shaped by rising credit risks, liquidity concerns, cybersecurity threats, and ongoing regulatory changes. The National Credit Union Administration (NCUA) has outlined its supervisory priorities for the year ahead, focusing on areas that present the highest risk to credit unions, their members, and the National Credit Union Share Insurance Fund (Share Insurance Fund). For credit unions to successfully navigate these challenges, it’s crucial to consider strategic partnerships that can streamline operations, optimize risk management, and help meet regulatory demands. Partnering with a trusted one-to-many solutions provider offers an effective way to address these priorities while enhancing operational efficiency and member satisfaction.

Credit risk will remain a key supervisory priority for 2025. Credit unions have already seen signs of stress in their loan portfolios, with delinquencies and charge-offs rising. Particularly concerning is the rapid deterioration of credit card and used vehicle loan performance, with delinquency rates and charge-off levels exceeding even the peaks of the 2008 financial crisis. To succeed in this environment, credit unions must be vigilant in reviewing their lending and risk management practices.

Outsourcing credit risk management to an experienced partner can help credit unions focus on their core mission while improving overall portfolio health.

Credit unions are exposed to a variety of risks that can affect earnings and net worth, particularly interest rate risk. The recent rise in interest rates has squeezed net interest margins, affecting earnings. While some credit unions have experienced rising costs of funds, loan and investment returns have yet to fully recover. Moving into 2025, the focus should be on maintaining a strong balance sheet and managing liquidity risks to protect both earnings and capital.

Maintaining a clear focus on these areas will ensure that your credit union remains financially sound and able to weather any turbulence ahead.

Cybersecurity continues to be a top priority, as the threat landscape grows increasingly complex. Cyberattacks are becoming more frequent and sophisticated, and the risk to credit unions’ sensitive data, systems, and operations is higher than ever. NCUA examiners will assess your credit union’s ability to safeguard both member data and its own systems from potential breaches.

By fortifying your cybersecurity strategy, your credit union can reduce the likelihood of a breach and minimize the impact of any potential incidents.

The NCUA will continue its focus on consumer financial protection, ensuring credit unions are compliant with key laws and regulations, such as the Military Lending Act and the Home Mortgage Disclosure Act. In 2025, particular attention will be paid to overdraft programs, fair lending practices, and the accuracy of consumer financial data reporting.

Maintaining compliance with these regulations will not only protect your credit union from legal risks but also promote a positive, trust-based relationship with your members.

As the financial landscape continues to evolve, credit unions must adapt to a range of challenges—rising credit risk, balance sheet management concerns, cybersecurity threats, and regulatory pressures. Strategic partnerships with trusted one-to-many solutions providers can streamline operations, reduce risks, and enhance overall efficiency. By partnering with experts in areas like credit risk management, balance sheet optimization, cybersecurity, and regulatory compliance, credit unions can free up resources to focus on their core mission: providing exceptional service to their members.

By forging strong strategic partnerships, credit unions can not only navigate the supervisory priorities outlined by the NCUA but also set themselves up for a successful and resilient 2025.