Periods of economic uncertainty don’t eliminate demand. They change behavior. People don’t stop needing cars, credit cards, or home repairs. They stop trusting the process.
Our recent consumer confidence survey, conducted during the government shutdown and including both government and non-government employees, found that nearly half of consumers experienced a decline in financial confidence in just one month. Only 12.5% said they feel very confident about their finances. Most described themselves as cautious, anxious, or overwhelmed.
This is not a demand problem. It’s a trust problem.
Consumers are pressing pause, not stop. They’re delaying major financial decisions because they don’t feel safe committing before they understand their options. Yet 36% told us they would still move forward with financing if the offer felt secure and transparent. That gap between hesitation and action is where credit unions have both a responsibility and an opportunity.
For years, lenders have competed on rates, terms, and speed. But when confidence is low, those factors take a back seat to something more fundamental: does this feel safe to explore?
Our research shows that lender behavior today is less about the offer itself and more about how consumers feel when they’re asked to click “continue.” People want clarity, control, and reassurance that exploring options won’t hurt their credit or lock them into something they’ll regret. The friction isn’t the application. It’s the forced commitment before confidence exists.
This is where credit unions already have a natural advantage. They’re consistently associated with fairness, transparency, and member first values. The challenge isn’t trust. It’s presence. Too often, credit unions are invisible at the exact moment consumers are evaluating financing options. And that moment matters more than ever.
Where financial decisions now begin
One of the most telling findings from our research is that consumers aren’t actively searching for lenders the way they once did. Instead, they’re responding to financing options that surface naturally inside digital environments they already trust.
Thirty seven percent said they discover financing through email or online offers. Twenty seven percent encounter offers inside credit monitoring apps like Experian or LendingTree. Another 28% see offers through their existing bank or credit union. Only a small fraction actively seek out lenders on their own.
This shift changes where financial decisions begin. When financing appears inside familiar, trusted tools, it feels safer to explore, especially during periods of uncertainty. That’s where embedded finance plays a critical role. By placing pre-approved or pre-qualified credit union offers directly inside the digital tools consumers already rely on, credit unions can show up at the moment intent exists without forcing people to search, switch platforms, or commit prematurely.
Context matters even more as consumers are increasingly exposed to buy now, pay later options and fast access lenders that prioritize convenience over outcomes. These products often win because they remove friction, not because they’re better for the consumer. In moments of hesitation, ease can feel like safety, even when it isn’t.
Our research showed that while big banks still lead in general trust, that advantage disappears when the same offer appears inside a trusted app. In those environments, consumers focus less on brand size and more on clarity, transparency, and confidence.
Credit unions are uniquely positioned to offer a better alternative—responsible, transparent financing backed by local institutions that prioritize long term financial health. Embedded finance allows credit unions to compete alongside BNPL players and large banks without sacrificing values or consumer outcomes. It’s not about adding more noise. It’s about creating space for informed, confident decisions.
Remove the final barrier to trust
Trust doesn’t stop at the offer. It extends to what happens next.
Our survey found that 31% of consumers still believe joining a credit union requires belonging to a specific group or labor union. That misconception alone prevents countless consumers from moving forward, even when they prefer credit union rates, service, and values. At the same time, 49% said they would choose a credit union over a bank if rates were equal.
When credit unions pair embedded offers with clear, timely explanations about eligibility and membership, they remove the final friction point. Trust converts to action in the moment eligibility feels open, not confusing or restrictive.
The credit unions that reach consumers earlier in the decision cycle will compete at the moment of intent, not after the fact. They’ll protect consumers from predatory alternatives, build confidence before a branch visit or website click, and turn cautious exploration into long term member relationships.
More importantly, they’ll fulfill the role the industry needs right now. Not just as lenders, but as financial stabilizers.
