Smaller credit unions are facing big challenges from regulatory complexity to evolving member expectations while managing tighter budgets and smaller teams. We sat down with our CEO Robin Kolvek to talk about what it really takes for credit unions under $250M to not just survive but thrive.
Q: Robin, VisiFI serves credit unions of all sizes, but what makes your work with smaller institutions different?
Smaller credit unions are the heartbeat of their communities. Many of them serve underserved markets or operate with limited staff, sometimes just a handful of people doing everything. What’s unique about working with them is the balance we have to create between delivering powerful digital services and ensuring they remain affordable, scalable, and easy to use. Our job is to make sure these credit unions have access to the same digital capabilities as the big players, but in a way that fits their size and budget.
Q: Have you seen the challenges facing small credit unions intensify in recent years?
Definitely. We’re seeing a lot of pressure building, rising operational costs, increasing compliance demands, and the expectation from members that every interaction should be digital, seamless, and immediate. And this is all happening while staffing is tight and margins are shrinking. It’s a lot to juggle. So yes, the headwinds are real, and they’re not letting up.
Q: From your perspective, what’s the biggest hurdle small credit unions face when it comes to technology?
Innovation versus affordability. Larger financial institutions can invest larger amounts for the latest technology. Smaller credit unions can’t. They need modular, cloud-based, API-friendly solutions that don’t come with massive price tags or long implementation timelines.
Another issue is integration. Many smaller credit unions are still running on legacy systems that weren’t built to “talk” to modern fintech solutions. That can slow things down and limit innovation. We’re working hard to change that with solutions that are truly plug-and-play.
Q: And the role of AI and automation in that evolution?
Without a doubt. AI and automation are essential for helping these credit unions operate more efficiently and compete with larger financial institutions. From automating routine tasks to enhancing fraud detection, improving member engagement, and streamlining compliance—AI is a game-changer. The key is to make AI accessible and affordable so that even the smallest credit unions can benefit.
At VisiFI, we’re focused on integrating technology in ways that empower credit unions, not replace their personal touch. Whether it’s chatbots for member support, predictive analytics for lending, or AI-driven fraud prevention, we see these technologies as tools to enhance, not replace, the credit union difference.
Q: And what about the people side of things?
That’s just as important. Smaller credit unions often struggle to find and keep skilled talent. When your entire team is five people, losing one has a huge impact. That’s why we design automation to support not replace—human effort. By taking repetitive tasks off their plate, credit union staff can spend more time doing what they do best: building relationships and helping members.
On top of that, compliance is getting more complex. Many smaller credit unions don’t have dedicated compliance officers, which makes it even more critical to provide tools that simplify reporting and help them stay in step with evolving regulations.
Q: So what’s been the key to working with smaller credit unions?
You’ve got to meet them where they are. That means no bloated systems, no 12-month implementation plans, no assumptions about internal IT resources. We listen carefully, and then we respond with modular, cost-efficient solutions. Education is also a big part of our process, helping our smaller credit unions with not just what they need today, but building a roadmap for sustainable growth.
Q: What about for credit unions under $100M? Are there specific solutions VisiFI offers?
Absolutely. These credit unions need digital tools that deliver impact without complexity. Our core banking platform is cloud-based and cost-efficient, and we offer AI-enhanced lending and member engagement tools that are easy to implement. We also help credit unions get up and running with real-time payments and Plaid integrations, which are increasingly essential to meet member expectations.
The point is, you don’t need a massive IT team or budget to offer top-tier digital experiences.
Q: And for those really small credit unions, what is your advice to ensure long-term viability?
This is where collaboration becomes critical. We’re seeing more small credit unions come together through CUSOs and shared services to pool resources and stay competitive. Outsourcing non-core operations—like back-office processing or compliance—can free up capacity to focus on member service and growth.
And we encourage them to get creative. Focus on niche markets. Lean into what makes them unique. Whether it’s serving a specific community, offering tailored lending products, or building fintech partnerships, they can absolutely stay relevant, but it takes a different mindset.
Q: Final question—do we need to rethink what a small credit union looks like in today’s world?
Yes, and I think we already are. The “one branch, paper-heavy, everything-manual” model just doesn’t work anymore. But that doesn’t mean small credit unions are obsolete. It means they have to evolve.
With the right technology, the right partners, and a smart strategy, small credit unions can absolutely thrive. They just need to think differently—leverage automation, embrace fintech, and focus on what makes them special.
To learn more about Robin and VisiFI, listen in to CU Insights Podcast as they discuss the often overlooked but incredibly important role that credit unions play in community development and why they deserve more attention in conversations around innovation. The CUInsight Network podcast: The human touch – VisiFI – CUInsight
For more information: info@visifi.com | Phone: 877-847-4346
Dedapulse – Accelerate Your Business, national core conference. Oct. 26 – 29, 2025 in Dallas, TX. 2025 Customer Conference – VisiFI
