Credit unions could see up to $10b uplift by closing tech gaps

They will have to overcome weaker digital sales and outdated platforms.

Winning over the digitally savvy generation could give credit unions a $5b–$10b revenue boost, according to estimates from McKinsey & Co. But first, they would have to overcome their digital and mobile weaknesses.

The revenue boost would rely on whether the credit union industry can reach the same digital sales level as regional banks with everything else held constant.

Credit unions’ challenges include their weaker digital sales compared to regional banks. In the US, for example, regional banks make 30% of their sales digitally compared to credit unions’ 10%.

Many credit unions also rely on outdated digital platforms. McKinsey estimates that up to 75% of credit unions operate on so-called legacy loan origination systems that don’t offer true automation.

Over 75% of credit unions that McKinsey spoke with view the digital journey as a challenge, citing factors such as applications that are abandoned because users lose patience.

They also have weaker engagement on websites, and a weaker mobile experience.

“On average, credit unions get a rating of 4.4 out of 5, with mega banks at 4.9 and regional banks at 4.8. Credit union members are also less likely to leave an app review in the first place, hinting at potentially lower engagement,” McKinsey said in its report “The digital imperative for credit unions” published on June 2025.

McKinsey suggested three ways that credit unions can enhance their digital maturity: tailoring their approach to serve the needs of a target segment instead of trying to be “all things to all people.”

They should also move beyond ad hoc marketing campaigns and adopt a continuous, “always on” digital marketing strategy that emphasizes the lifetime value (LTV) of their members; as well as creating a seamless, user-friendly digital experience.

Amongst tools they can use include agentic AI, data analytics, and other technologies, McKinsey said.