From Scarcity to Precarity: The Credit Union Opportunity
May 21, 2025
On May 12, I delivered an opening keynote address to the national conference put on by the Canadian Credit Union Association. This is a summary of the presentation.
The Canadian landscape has experienced a profound shift—from a “scarcity” mindset, characterized by immediate fears about day-to-day necessities such as housing, healthcare, and the cost of living, to a deeper “precarity” mindset. Canadians are now increasingly anxious about long-term uncertainty and the stability of foundational systems. This shift is clearly reflected in public opinion data, revealing that 68% of Canadians worry about their ability to afford basic needs in the short-term, while an even greater number (70%) anticipate delaying major life decisions due to financial uncertainty.
The rise of precarity has been amplified by geopolitical instability, notably Donald Trump’s disruptive policies towards Canada, causing 79% of Canadians significant stress about the nation’s future. This environment has catalyzed a resurgence in Canadian nationalism, with many Canadians now consciously choosing local over American products, as evidenced by 44% actively avoiding American-made goods.
Credit unions, known for their community orientation and reliability, are uniquely positioned to thrive in this new context. They naturally align with what precarious consumers increasingly seek: clarity, certainty, community, and control. Fintech competitors may offer convenience and immediacy, but they often lack the deeper emotional connection and trust that credit unions inherently provide. In a precarious world, this emotional bond—built on genuine relationships and localized commitment—will significantly differentiate credit unions from traditional banks and fintech alternatives.
Young Canadians, in particular, represent a significant growth opportunity for credit unions, yet many in this demographic remain unaware of the holistic value credit unions offer beyond basic financial services.
To bridge this gap, credit unions must proactively communicate their community-centered values and tangible support systems designed to address members’ long-term needs and uncertainties.
In this shifting environment, understanding and meeting the unmet needs of current and prospective members is critical. Precarity has not diminished consumer spending entirely; rather, it has reshaped spending behaviours towards cautious yet value-driven choices. A substantial portion of consumers (91%) now approach spending more cautiously due to future uncertainties, while nearly half (47%) restrict their purchases to essential items. Credit unions can capitalize on this behaviour by providing financial products and services tailored to offer enhanced financial stability, community support, and sustainable economic participation.
The moment for credit unions to act is now—this is a unique opportunity to shape new consumer habits and deepen member relationships. It is essential to harness collective action within the credit union sector, reinforcing the strengths of cooperative banking to effectively communicate its advantages in a landscape marked by anxiety and instability. By emphasizing their role in ensuring financial certainty and fostering resilient local economies, credit unions can secure lasting loyalty from members, especially younger demographics, solidifying their position in the financial services landscape.
The question credit unions face today is: “If not now, when?” Understanding and responding to this critical shift in mindset is not just an opportunity—it is a necessity for future relevance and growth.
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