This week’s New York Minute highlights a final call for EXCEL 26 Silent Auction donations, a major fundraising milestone from Sunmark Credit Union, upcoming educational opportunities, and resources designed to help credit unions better serve and protect their members. Read on for the latest updates from around the movement.

Last Call: Donate to the EXCEL 26 Silent Auction to Support NYCUF

There’s still time to make a difference! The EXCEL 26 Silent Auction is just around the corner, and the New York Credit Union Foundation is seeking a few final donations before bidding begins.

The annual auction is one of the Foundation’s signature fundraising initiatives, helping support financial wellness programs, professional development opportunities, disaster relief efforts, and other initiatives that strengthen credit unions and the communities they serve. Popular donations have included gift baskets, vacation packages, event tickets, electronics, local experiences, and unique member gifts.

Donations must be submitted soon, so don’t miss this opportunity to showcase your organization while supporting a great cause.

Sunmark Credit Union Golf Classic Raises More Than $75,000 for the Community

Sunmark Credit Union’s commitment to giving back was on full display during its 26th Annual Charity Golf Classic, which raised more than $75,000 for the Sunmark Charitable Community Foundation.

Held at Normanside Country Club in Delmar, the event welcomed more than 100 golfers and over 50 corporate sponsors for a day of golf, networking, raffles, and community impact. Since its inception in 2000, the tournament has become a cornerstone fundraising event, generating support for nonprofit organizations and initiatives throughout Sunmark’s service area.

Proceeds from the event directly benefit the Foundation, which provides financial contributions, volunteer support, and resources to organizations working to improve quality of life, strengthen communities, and expand financial education opportunities.

CU4Kids Webinar Explores Member Trust, Giving, and Community Impact

How do consumers view charitable giving? What role do credit unions play in fostering trust and strengthening local communities? A new CU4Kids webinar will explore these questions through the lens of recently released research from Children’s Miracle Network Hospitals.

The session will examine key findings on member perceptions of charitable giving, trust in financial institutions, and the impact of community-focused initiatives. Attendees will gain valuable insights into how charitable partnerships can strengthen member relationships while reinforcing the credit union mission.

Whether your credit union already participates in fundraising initiatives or is looking to expand its community impact efforts, this webinar offers actionable insights backed by new research.

Fighting Member Target Fraud Starts Inside the Credit Union

Fraudsters are becoming increasingly sophisticated, using tactics like artificial intelligence, impersonation schemes, and social engineering to manipulate consumers into giving away sensitive information or transferring funds. As these scams continue to evolve, credit unions play a critical role in protecting members and strengthening fraud prevention efforts.

In a new article from TruStage, Risk Consultant Holly Speczenski explores the growing threat of member-targeted fraud and outlines practical steps credit unions can take to reduce risk. From employee training and member education to building a culture of fraud awareness, the article highlights strategies that can help institutions stay one step ahead of emerging threats.

Federal Home Loan Bank of New York Announces Launch of the 2026 Small Business Recovery Grant (SBRG) Program

The Federal Home Loan Bank of New York (FHLBNY) has announced the launch of its 2026 Small Business Recovery Grant (SBRG) Program, providing funding to support eligible small businesses as they recover, rebuild, and grow.

Through the program, participating financial institutions can help connect qualified businesses with grant funding designed to address operational challenges, invest in recovery efforts, and strengthen long-term sustainability. The initiative reflects FHLBNY’s ongoing commitment to supporting economic development and fostering resilient local communities.

Credit unions and other participating institutions are encouraged to learn more about eligibility requirements, funding availability, and application details to help connect local businesses with these valuable resources.

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How credit union leaders can protect members by changing mindset, culture and tools

By Holly Speczenksi, Risk Consultant, Risk & Compliance Solutions, TruStage

I spend a lot of time talking with credit unions about risk, and one issue keeps coming up: member-targeted fraud. It touches nearly every institution, regardless of size, geography or field of membership. Fraud no longer starts with systems or networks; it starts with people. That reality changes how leaders need to think about prevention.

When I talk about member-targeted fraud, I mean scams that are aimed directly at individuals not credit unions. These schemes trick members into sending money, sharing sensitive information or giving criminals access to their accounts. Fraudsters often impersonate credit unions, government agencies, law enforcement or tech support. They rely on urgency and fear to push members into acting before they have time to think logically about what is happening

This type of fraud affects everyone. Many still assume scams primarily target older adults, but the reality is very different. I see victims across all age groups. Most adults have encountered some form of online scam, and the messages are no longer sloppy or obvious. Criminals now personalize their outreach using data pulled from breaches, social media, and public records, which makes the interaction feel legitimate and familiar

Over the last few years, fraudsters have adopted more sophisticated social engineering tactics and generative Artificial Intelligence (AI) has made their work even easier. Criminals can now create polished phishing emails, realistic text messages, and deep fake voice or video clips. Those tools remove many of the traditional warning signs—like bad grammar or peculiar sentence structure—credit unions once relied on when educating members about fraud.

Types of scams

Romance scams remain some of the most damaging cases I see. These schemes do not rely on urgency. Instead, scammers build relationships over weeks, months, or even longer. They create detailed backstories and full identities, sometimes stolen from real people. By the time they ask for money, victims feel emotionally invested and deeply connected. That investment makes it extremely difficult for credit union staff to convince a member the relationship is not real.

Government impersonation scams also continue to grow. In these cases, fraudsters pose as representatives from well-known governmental agencies like the FBI, Secret Service, or IRS. They claim the victim’s credit union or account is under investigation and warn members their funds are at risk. The scammer then instructs the member to move money into a so-called “secure” or “holding account” via a wire transfer or a cash deposit into a cryptocurrency ATM. They stress urgency while demanding secrecy, which protects the criminal by isolating the victim.

Employee impersonation scams hit especially close to home for credit unions. In these situations, criminals call members while posing as credit union employees. They reference the member by name and claim to see suspicious account activity. Once the member denies authorizing the transactions, the scammer asks for authentication details. With that information, criminals can gain access to accounts online and move funds quickly, often before anyone realizes what happened.

Other scams continue to circulate as well, including lottery scams, fake investment opportunities, family emergency stories, and tech support schemes. Each one uses a different hook, but the mechanics stay consistent. Criminals create fear or excitement, introduce urgency, and insist on secrecy. They then walk victims’ step by step through the process of sending money.

What credit unions can do to safeguard members

Preventing these losses requires credit unions to start with their own staff. Employees need training that focuses on recognizing red flags and feeling comfortable slowing things down. Large or unusual withdrawals, sudden transfer requests and members who seem anxious or rushed all deserve and need closer attention. Asking questions protects members far better than speeding through a transaction ever will.

Technology supports that effort. Credit unions need real-time fraud monitoring tools that rely on behavioral analytics, machine learning, and AI. These systems help identify activity that does not align with a member’s typical behavior, such as logging in from a new device and immediately initiating large transactions. Without these tools, institutions end up chasing fraud instead of preventing it.

Member education also plays a critical role, but it needs consistency and repetition. Credit unions should share fraud messaging through every available channel, including online and mobile banking, email, branch interactions, and traditional direct mail. Members consume information differently, and repeating key messages on multiple channels increases the likelihood they remember them when it matters most.

Simple guidance often works best. Members should know:

• Don’t trust caller ID, phone numbers can be spoofed.
• Never share one-time passcodes or sensitive information with someone who calls.
• If a caller pressures them to act quickly or demands secrecy, that request should immediately raise concern.
• Walking away if any of these red flags become evident is always the safest choice.

Trusted contact programs offer another layer of protection. These programs allow credit unions to reach out to a person the member has already designated when staff suspect financial exploitation or health concerns. The trusted contact does not gain account access. Instead, they provide perspective and support that can help interrupt a scam before money disappears.

At the leadership level, this work requires a mindset shift. Fraud prevention should function as both loss prevention and member service. Protecting members from scams strengthens trust and reinforces the credit union’s role as a financial partner. When that philosophy becomes part of the culture, staff feel empowered to act, members feel supported and the organization becomes stronger against an ever-evolving threat.

Staying ahead of the bad actors

TruStage offers resources to help keep your members protected, including our ‘When Members Become Victims’ interactive training module and our Emerging Risks Outlook overview.

To learn more how TruStage can help, visit TruStage.com

<sub>The views expressed here are those of the author(s) and do not necessarily represent the views of TruStage.

TruStage® is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis. © TruStage

CUP-8896804.1-0426-0528</sub>

From advocacy and community impact to leadership recognition and industry events, credit unions across New York continue to demonstrate the power of cooperation in action! This week’s New York Minute highlights major milestones, honors, and more. Read on for the latest updates from around the movement.

Credit Unions Partner with Habitat for Humanity for Capitol Build Day

Credit unions from across New York rolled up their sleeves for Habitat for Humanity’s Capitol Build Day on May 26. The event brought together volunteers for a day of hands-on service to help expand access to affordable housing and support families on their path to homeownership. The effort demonstrates credit unions’ ongoing commitment to financial well-being beyond traditional banking services.

“Credit unions were built on the belief that everyone deserves access to affordable financial solutions and Capitol Build Day brings that belief to life,” said Association President & CEO William J. Mellin. “Partnering with Habitat for Humanity allows us to turn that mission into action, helping New Yorkers build stable financial futures from the ground up.”

The event continues to showcase how collaboration and community service remain at the heart of the credit union philosophy. We are grateful to our credit union members who supported the event and joined us for a day of community building and fun.

Long Island Chapter Raises $50,000 for the New York Credit Union Foundation

The Association’s Long Island Chapter is making a major investment in the future of the movement with a $50,000 contribution to the New York Credit Union Foundation following the success of its annual golf outing held on May 18 at Bellport Country Club.

The outing brought together credit union professionals, business partners, and supporters from across the region for a day of friendly competition, networking, collaboration, and fundraising—all in support of the Foundation’s mission to positively impact New Yorkers through credit unions.

Funds raised through events like this help support the Foundation’s educational initiatives, disaster relief efforts, professional development opportunities, and programs that empower credit unions to better serve their members.

Cassie Fortney of Sunmark Credit Union Recognized as 40 Under 40 by the Albany Business Review

Congratulations to Cassie Fortney of Sunmark Credit Union, who has been recognized by the Albany Business Review as part of its prestigious 40 Under 40 Class of 2026.

The award celebrates professionals who are helping shape the future of business and nonprofit leadership throughout the Capital Region. Fortney’s recognition highlights the growing influence of the credit union movement across New York. Not to mention the important role young leaders play in driving member service and community engagement forward. The honor is well-deserved!

Credit Union Leaders Receive Long Island Business News Executive Circle Honors

Two credit union leaders have been recognized by Long Island Business News with its 2026 Executive Circle Award, which celebrates high-performing executives who demonstrate leadership, innovation, and lasting impact within their organizations and communities.

This year’s honorees include:

• Scott Gyllensten, Chief Risk Officer, Teachers Federal Credit Union
• Eric Oterson, Chief Member Experience Officer, Jovia Financial Credit Union

Congratulations to both honorees! Their leadership plays a crucial role in advancing member experience, organizational growth, and community engagement. Awards like these continue to spotlight the strength of leadership within New York’s credit union movement and the dedication of professionals working every day to improve financial lives and strengthen their communities.

Alloya Returns to Nashville for 12th Annual Leadership Symposium

Alloya Corporate Federal Credit Union will return to Nashville this September for its 12th Annual Credit Union Leadership Symposium, bringing together credit union leaders from across the country for three days of insight, strategy, and collaboration.

Taking place September 9–11 at the Omni Nashville Hotel, the event will feature keynote presentations and discussions focused on innovation, leadership, artificial intelligence, economic trends, and the future of the credit union movement. This year’s speaker lineup includes innovation expert Josh Linkner, economist Elliot Eisenberg, AI expert Byron Reese, and former Navy commander Mike Abrashoff, among others.

In addition to educational sessions, this year’s symposium will also celebrate Alloya’s 15-year anniversary of serving credit unions nationwide.

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In our latest New York Minute, we’re reminding you to save your spot for EXCEL 26! Plus, check out how credit unions are supporting their community, as well as recent leader recognitions. Get this week’s industry news in our blog!

Don’t Miss Out: Registration for EXCEL 26 Closes May 28!

There’s just one week left to register for EXCEL 26, the New York credit union movement’s premier annual event. From June 11-14, credit union professionals and volunteers from across the state will gather for four days packed with learning, networking, inspiration, and celebration.

Whether you’re looking to sharpen your leadership skills, connect with peers, discover industry trends, or recharge alongside colleagues from across New York, EXCEL26 offers something for everyone.

Attendees can expect:

• Dynamic educational sessions
• Engaging keynote speakers
• Networking opportunities
• Memorable events

With the May 28 registration deadline quickly approaching, now is the time to secure your spot and be part of one of the most anticipated credit union events of the year. Don’t wait until the last minute, register today and join your fellow credit union leaders for an unforgettable experience.

Sidney Federal Credit Union Employees Volunteer with Syracuse Rescue Mission After $75,000 Donation

Sidney Federal Credit Union has demonstrated a continued commitment to community impact through both financial support and employee volunteerism. The credit union recently donated $75,000 to the Syracuse Rescue Mission to help advance programs focused on homelessness prevention, shelter services, and long-term recovery support throughout Central New York.

In addition to the donation, SFCU employees volunteered with the Rescue Mission on April 23, helping sort and organize donations collected through the Polka Tot consignment sale. Those items play an important role in supporting individuals and families experiencing homelessness and ensuring critical resources reach the community efficiently.

Through initiatives like these, SFCU continues demonstrating the credit union philosophy of people helping people in action.

The Summit FCU Participates in Bed Build Event for Sleep in Heavenly Peace

Employees and family members from The Summit Federal Credit Union recently volunteered with the Syracuse chapter of Sleep in Heavenly Peace to help ensure local children have a safe and comfortable place to sleep. During the bed build event, volunteers helped build beds for 61 children in Central New York who previously did not have beds of their own.

The event also highlighted a significant need facing families across the region. According to Sleep in Heavenly Peace, volunteers in Central New York deliver between 35 and 40 beds each week, yet more than 400 children remain on a three-month waiting list locally. Nationally, the organization now includes 380 chapters, with approximately 120,000 children still waiting for beds.

The Summit’s participation reflects the credit union industry’s ongoing commitment to supporting local families and strengthening communities through hands-on volunteerism. By partnering with organizations like Sleep in Heavenly Peace, credit unions continue making a meaningful difference far beyond financial services.

Carol Allen of People’s Alliance FCU Received Corporate Leadership Award from SCO Family of Services

The Association congratulates Carol Allen, President and CEO of People’s Alliance Federal Credit Union, on receiving the Corporate Leadership Award at the SCO Family of Services Inspiration Ball.

The recognition celebrates Allen’s leadership and her continued support of organizations dedicated to helping children, families, and individuals thrive. People’s Alliance FCU shared its appreciation for SCO Family of Services and its unwavering commitment to strengthening communities throughout New York. The organization’s work continues to make a meaningful impact in communities across the region.

Allen’s recognition highlights the important role credit union leaders play in supporting nonprofit organizations and creating positive change beyond the financial sector. Congratulations again to Carol on this well-deserved honor.

Jerilee Beaudoin of Sunmark Credit Union Honored by Capital Region Chamber

The Association congratulates Jerilee Beaudoin of Sunmark Credit Union on being recognized as a Women of Excellence honoree by the Capital Region Chamber Women’s Business Council.

The Women of Excellence Awards recognize outstanding leaders from throughout the Capital Region who demonstrate exceptional professional achievement, leadership, and community impact. Recipients are selected by a committee comprised of previous Women of Excellence honorees and represent some of the region’s most influential and accomplished professionals.

Beaudoin was recognized in the Excellence in Management category, which honors leaders who demonstrate strong organizational leadership, empower their teams, and implement innovative solutions to drive long-term success. The award also recognizes individuals who foster workplace growth, support employee development, and position their organizations to meet future challenges and opportunities.

This honor reflects Jerilee’s dedication to leadership excellence and the positive impact she continues to make within the credit union movement and the broader community.

From InfoSight360: CFPB Finalizes Revisions to Small Business Lending Rule

By Michael Christians

On May 1st, the Consumer Financial Protection Bureau (CFPB) issued a final rule which makes significant changes to the small business lending data collection requirements found in Subpart B to Regulation B.

First, let’s look at what is changing:

Mandatory Compliance Date


Previously, there were 3 different mandatory compliance dates based on the number of covered transactions originated by the covered financial institution. Now, all covered financial institutions will begin collecting data on January 1, 2028.

Covered Financial Institution


Under the original rule, a financial institution that originated at least 100 covered credit transactions in each of the two preceding calendar years was required to collect and report data. Under the revised rule, that threshold has been raised to 1,000 covered credit transactions in each of the two preceding calendar years.

Covered Credit Transaction


Previously, any extension of business credit was considered a covered credit transaction unless specifically exempted. The revised rule adds three new types of exempt transactions:

• Merchant cash advances,
• Agricultural loans, and
• Business loans for under $1,000.

Small Business

Under the original rule, a small business was one with gross annual revenue of $5 million or less during its preceding fiscal year. Now, a small business is one with gross annual revenue of $1 million or less during its preceding fiscal year.

Data Collection


The revised rule removes the following data points from the list of those required to be collected in connection with each covered credit transaction:

• Application method,
• Application recipient,
• Denial reasons,
• Pricing information,
• Number of workers, and
• Whether the small business is LGBTQ+-owned

Furthermore, under the revised rule, when collecting ethnicity, race, and sex of the principal owners of the small business, credit unions need now only use the aggregated categories for ethnicity and race and either male or female for sex.

There are several items from the original rulemaking that were not changed by the CFPB. Let’s look at those next:

Covered Application


An oral or written request for a covered credit transaction, except for reevaluation, extension, or renewal requests that do not see new money. In addition, inquiries and prequalification requests are excluded from the definition of covered application.

Firewall


No person involved in making any determination concerning the application may have access to business ownership status and/or principal owner demographic information. In addition, this information must be kept separate from the remainder of the application or loan file.

Data Submission


A covered financial institution’s small business loan application register must be submitted not later than June 1st of the year following data collection.

Public Disclosure


A covered financial institution must post a notice of availability on its website.

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This week in the New York Minute, learn more about Fintech Connect 2026, Association Board of Directors elections, a new credit union affordability communications toolkit from AACUL, workplace and community recognition awards, plus more!

Register to Attend Fintech Connect 2026!

Innovation is moving fast in the credit union space, and Fintech Connect 2026 is designed to help credit union professionals stay ahead of the curve. That’s why the Association is partnering with the Cooperative Credit Union Association (CCUA) and the Association of Vermont Credit Unions to give New York credit unions access to this premier fintech conference on Wednesday, June 17, in Nashua, New Hampshire.

Now in its third year, Fintech Connect has built a reputation for delivering a highly interactive experience focused on real-world technology solutions for credit unions.

Attendees can expect

• “Quick connect” networking sessions
• Live product demonstrations
• The highly anticipated Cyber Showcase, where fintech companies compete to present innovative credit union solutions

The event also offers a unique opportunity to connect directly with fintech CEOs, founders, and peers from across the region while discovering tools that can strengthen operations and enhance member experiences. This is a can’t miss event, click below to register!

Reminder: Association Board of Directors Elections Are Open!

Association member credit unions: Now’s your chance to participate in the 2026 Board of Directors election process. This year’s election includes three expiring director seats and one open seat: two (2) in Asset Tier 1 (up to $250 million) and two (2) in Asset Tier 2 ($250 million and over).

Credit union CEOs should have received voting instructions through eBallot VoteNet via an email sent from an eballot.com domain. In accordance with the Association Board Governance Policy, all ballots must be submitted electronically by June 4, 2026. Election results will be announced at the Association’s annual meeting on June 14, 2026.

Participation in the election process plays an important role in shaping the future leadership and strategic direction of the Association. Review candidate information and ensure your organization’s vote is submitted before the deadline! Learn more on the Board Election Page.

Communications Toolkit Highlighting Credit Union Affordability Now Available

The League System has released a new Credit Union Affordability Toolkit designed to help credit unions clearly communicate the real financial value they provide members every day.

The complimentary toolkit, developed through collaboration across the League System and the American Association of Credit Union Leagues (AACUL), includes fully customizable resources that credit unions can quickly integrate into existing outreach efforts.

Materials include

• Newsletter and blog copy
• Social media graphics and captions
• Email content
• Website graphics
• Customizable press release template
• Budgeting worksheet to support financial wellness conversations

The toolkit highlights how credit unions help members save through lower loan rates, reduced fees, and member-first service, which can add up to hundreds of dollars in annual savings for households.

Explore the toolkit and utilize the resources to reflect your local branding, messaging, and community impact. The Association also recognizes the League System and AACUL for continuing to invest in practical, collaborative resources that support credit unions of all sizes.

Reliant Credit Union Named One of Rochester’s Top Workplaces for Ninth Year in a Row

Congratulations to Reliant Credit Union on being named one of Rochester’s Top Workplaces by the Democrat and Chronicle for the ninth consecutive year.

The recognition is based entirely on employee feedback collected through a confidential third-party survey administered by Energage LLC. The survey measures several aspects of workplace culture, including whether employees feel respected, supported, empowered, and encouraged to grow professionally.

Reliant continues to make a meaningful impact throughout its community while maintaining a strong commitment to employee engagement and member service. This latest recognition reflects the credit union philosophy in action and highlights the positive workplace cultures being cultivated across New York’s credit union community.

Credit Unions Recognized as Best of the Capital Region

Several New York credit unions were recently recognized in the “Best Credit Union” category of the Best of the Capital Region awards, an annual reader-driven program celebrating standout businesses, organizations, and institutions throughout the region.

Congratulations to the following recognized credit unions:

• Broadview Federal Credit Union
• Sunmark Credit Union
• First New York Federal Credit Union
• Community Resource FCU
• Hudson Valley Credit Union

The annual awards are determined through community voting, with more than a quarter-million votes cast across categories celebrating the people and organizations that make the Capital Region unique.

The recognition reflects the strong relationships these institutions continue to build within their communities through member-focused service, financial support, and local engagement. Congratulations to all of the credit unions recognized for this achievement and for continuing to demonstrate the value of the credit union difference across New York State.

From TruStage: Portfolio Resilience Starts By Fixing the Recall Gap

By Corrin Maier, Vice President, Lending Business, TruStage

The financial fragility of the modern borrower

The 2026 lending environment is not defined by a single shock. It’s defined by compounding pressure.

Auto loan defaults have nearly doubled since 2020, and credit unions are seeing something that would have been unthinkable a few years ago: members walking into branches to voluntarily turn over their keys because they can no longer carry the payment burden. Peak vehicle pricing, elevated interest rates and tighter household cash flow have combined into a perfect stress test for loan portfolios.¹

This isn’t limited to auto lending. Across consumer credit, financial fragility has become the norm rather than the exception. Nearly three-quarters of consumers report experiencing at least one financial hardship, and more than 90% worry that a single life event such as job loss, illness or disability could derail their ability to repay a loan.²

For credit union executives, this creates a clear mandate: Preventing default is no longer just about underwriting discipline.

The institutions that will outperform in the next economic cycle are shifting their posture: From lender of record to financial safe harbor.

The recall gap: A silent delivery failure

Most credit union leaders assume the risk conversation is covered when protection is “offered.” The data says otherwise. More than 80% of consumers say they are interested in payment protection products, yet more than half of borrowers do not recall being offered coverage at all.² This is the recall gap, and it is not a conversation problem. It is a delivery problem.

Face-to-face interactions remain a critical foundation of the member relationship. But the loan closing process is overwhelming. When members are focused on rate, approval, and speed, even a well-intentioned branch conversation can become background noise. A single touchpoint, however genuine, is rarely enough.

Closing the recall gap means expanding where and how the offer is made. Consumers prefer multiple exposures to complex financial information. In fact, 74% say multiple touchpoints help them make more confident decisions. Ninety-six percent of borrowers say they want to review protection options online, on their own time, before loan documents are finalized.² When that option isn’t available, the decision doesn’t get deferred. It often disappears.

The result is predictable. Members leave unprotected, not because they declined coverage, but because the experience never allowed the value to register.

Why digitally embedded protection changes the equation

Digital embedded protection closes the recall gap by meeting members where decisions actually happen.

Instead of relying on memory after the fact, protection is introduced directly within the digital lending flow when relevance is highest and attention is focused. This mirrors how consumers evaluate other complex protections today. Buying travel insurance for a $400 plane ticket is intuitive because it appears at the exact moment risk becomes real.³

When protection is embedded, three things happen immediately:

1. Awareness increases: Members see personalized options clearly and can evaluate individual coverage in context.
2. Understanding improves: Digital experiences allow education to happen without time constraints.
3. Outcomes improve: More members make informed choices, and more loans are protected before hardship strikes.

This is not theoretical. Credit unions implementing embedded protection report seamless integration rates above 95%, eliminating manual rekeying and reducing staff burden.² The operational lift is minimal, while the portfolio impact is material.

The win-win: Member security and portfolio performance

Embedded protection is often framed as a member benefit. That’s true, but it’s only half the story.

When members are protected, loan performance improves. Delinquencies are mitigated earlier. Charge-offs are reduced, and servicing teams spend less time reacting to financial crises that could have been absorbed.

From a financial perspective, the upside is clear. Credit unions offering embedded protection see a 26% increase in net income per member, driven by higher attachment rates, improved loan performance and reduced operational friction.3

This is the definition of a win-win model. Members gain a financial backstop during life’s most disruptive moments. Credit unions strengthen portfolios without sacrificing trust or speed.

In an environment where margins are under pressure and risk tolerance is tightening, few strategies deliver this level of aligned value.

Making speed the standard—without losing the brakes

One of the most common concerns executives raise is speed. Digital lending has trained members to expect decisions in minutes, not days. Any added friction risks abandonment.

The answer is to design integration correctly, not remove the protection from the experience.

Think about the transparency consumers expect elsewhere. Booking a $30,000 loan should feel as clear as purchasing a $400 plane ticket. Embedded protection applies the brakes just long enough to establish value, without adding friction to the digital application.

This balance is critical. When protection is thoughtfully integrated—not bolted on—it enhances trust rather than slowing momentum. Members feel informed, not sold. Staff stay focused on exceptions, not explanations. And the lending experience remains competitive in a crowded digital marketplace.

The real risk heading into 2026

The greatest risk facing credit union loan portfolios today is not interest rates or asset prices alone. It is exposure created by missed moments.

If half of your members are “forgetting” protection options, then half of your portfolio is unnecessarily vulnerable to the next job loss, illness, or life disruption. In the economic environment ahead, that is not a small gap.

Embedded protection is not another trend in the industry. It’s become a vital integration for organizations to find a scalable way to close the “recall gap” while preserving speed, trust, and member choice.

For credit unions committed to long-term portfolio resilience, the path forward is clear: Meet members digitally, protect them proactively, and design lending experiences that absorb risk before it becomes default.

That is how institutions move from simply lending money to truly safeguarding financial futures.

Learn more about embedding payment protection insurance into your digital loan application. Visit our Integrated Payment Protection page.

¹GOBankingRates. Auto Loan Defaults Are Rising: How To Protect Your Car and Credit. 2025, Oct. 14
²TruStage. 2025 Consumer Lending Preferences Report. March, 2025
³CUbroadcast. GAC25: TruStage’s Corrin Maier Talks the Benefit of Loan Insurance Products for Credit Unions. 2025, March 8.

The views expressed here are those of the author(s) and do not necessarily represent the views of TruStage

TruStage® is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.
© TruStage. All Rights Reserved. LPS-8753048.1-0226-0328.

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