Why Credit Union Mergers Are Accelerating &
Why Loyalty Programs
Should Be Part of the Integration Plan
December 10 2025
5 min read
Across North America, credit unions are merging at one of the fastest rates the sector has seen in years. Consolidation isn’t new, but the scale is changing. According to the NCUA’s Q3 Merger Activity and Insurance Report, 41 mergers were approved in the third quarter of 2025 alone, including three multibillion-dollar credit unions. The Canadian landscape is trending in the same direction: fewer, larger institutions with bigger mandates and more competitive pressures.
For leadership teams, mergers solve real problems: scale, efficiency, technology upgrades, and the ability to offer more to members. But they also create a very real challenge: how to retain trust and keep members feeling connected during a period of major change.
This is where loyalty programs, especially modern digital ones, play an important role.
The Branding Reset: A Natural Moment to Modernize Member Experience
Every merger, even the smoothest, friendliest, most well-planned one, comes with logistical and emotional shifts.
Two brands become one; Two visual identities become one; Two cultures need to blend.
And quite often, the “chosen” brand undergoes a refresh anyway: new colours, new signage, new marketing assets, new tone of voice, and new physical materials across branches. Rebranding is expensive, time-consuming, and deeply visible to members.
But it’s also a strategic window to introduce something meaningful that signals momentum and reinforces member value.
If everything else is getting a fresh start, why not give your members a fresh reason to stay?
That’s why mergers naturally align with launching or upgrading a loyalty strategy. You’re already updating the brand experience. Integrating loyalty simply extends that upgrade into the product experience.
Merging Two Member Value Models Isn’t Simple
Another common complexity: different approaches to member value between the two organizations.
Example scenarios we see often:
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One credit union has a formal patronage or profit-sharing model. The other does not.
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One has a points-based youth program; the other has nothing for younger members.
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One has strong community-impact rewards; the other focuses purely on rates and fees.
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One CU rewards tenure; the other rewards transactions.
When these come together, leadership teams need to make decisions:
What do we keep?
What do we sunset?
How do we merge two very different expectations of what being a “member” means?
A unified loyalty program solves this tension. It creates one consistent, modern value system that works across legacy membership bases without dismantling the relationship-based culture that makes credit unions unique.
Loyalty as a Stability Tool During Change
Mergers can be exciting, but they also create uncertainty. Members ask:
Will my branch close?
Will my fees change?
Is this still my credit union?
Will the people I trust still be there?
A loyalty program answers these questions indirectly but powerfully.
It gives the merged institution a clear way to say:
“We’re growing, but we’re still here for you. And we’re reinvesting in your experience.”
Instead of members only seeing what’s being “consolidated,” they also see what’s being added.
This is especially important for younger demographics who are less anchored by legacy relationships and more anchored by perceived value, ease, and digital benefits. A loyalty program builds that foundation immediately, right at the moment when members are forming opinions about the “new” organization.
Why Cyder Fits So Naturally Into Merger Moments
Cyder was designed specifically for credit unions, but its value becomes even clearer during mergers:
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Flexible reward engines allow CUs to build a model that respects legacy expectations while introducing new benefits.
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Fast deployment means the program can launch alongside or shortly after a brand refresh.
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Hundreds of configurable use cases allow marketing teams to create campaigns tailored to merged segments: from long-time members to new digital-first families.
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A consistent, modern member experience helps stabilize trust during organizational change.
When everything around a member is changing — signage, emails, website experiences, even the name of their credit union — loyalty is a grounding tool. It shifts the narrative from “What’s changing?” to “What’s in it for me?”
A Practical Checklist: Should Your Merging CU Consider a Loyalty Program?
Use this quick diagnostic list during integration planning:
If you answer “yes” to any of these, loyalty should be part of your merger roadmap.
□ Your merged CU will have a new or updated brand identity.
□ One legacy CU has patronage / profit sharing and the other does not.
□ You want to unify two different approaches to member value.
□ You expect branch consolidations or large operational changes.
□ You want to show early, visible benefits to members during integration.
□ You have multiple digital systems that need a clear behavioural-data layer.
□ You want to attract or retain younger demographics.
□ You want to create a stable, modern engagement strategy from day one.
Final Thought
Credit union mergers are accelerating, and scale is becoming essential. But growth alone doesn’t keep members connected. Loyalty does.
If your organization is navigating a merger or preparing for one the moment is right to establish a unified, modern value system that makes every member feel seen, appreciated, and invested in the new future you’re building.
Cyder helps make that possible.
Build the right loyalty program with Cyder.
If you're looking to thrive amidst a changing loyalty and rewards landscape, Cyder can help. We encourage you to book a one-on-one demo today with Cyder’s loyalty experts.
December 10, 2025 | Author: Jasmin Athwal
