Small credit unions double down on accessibility, empathy

Some large credit unions are experiencing growth through mergers, acquisitions, and opening branches this year, however some smaller credit unions operating in the Spokane area are staying competitive in the market by thinking outside of traditional expansion efforts, their leaders say.

Through collaboration, creativity, and community, Spokane-area financial institutions including Progressions Credit Union, Spokane Media Credit Union, and PrimeSource Credit Union are trying to show that being small can be a strategic advantage — not a liability — in modern banking.

Progressions Credit Union CEO Susan Vuong says she’s confident that the survival of the Spokane-based
credit union doesn’t rely on merging with another financial institution.

“Our strength, like other local, small, credit unions lies in our ability to adapt, innovate, and stay true to our mission of people helping people,” says Vuong. “We are doing that.”

Progressions Credit Union operates two Spokane branches, and serves about 5,600 members, according to the Journal’s June 19 Spokane-Area Credit Unions list.

By comparison, Spokane County’s two largest credit unions, STCU and Numerica Credit Union, serve about 150,000 members and 70,000 members, respectively, and operate about 30 total branches here, according to the Journal’s list.

Sarah Dahmen, CEO of Spokane Media Credit Union, which does business as Media Credit Union, says one of the keys to staying relevant is not trying to compete directly with large institutions, but instead offering personalized, community-focused financial services that she says larger organizations cannot easily replicate.

One of the strongest competitive advantages of small credit unions is their agility, Dahmen says. For example, in 2023, Media Credit Union, which operates one branch in Spokane County, responded quickly to the Hollywood writers’ and actors’ labor dispute that affected some of its members working in media and production. The credit union created a custom hardship loan program including deferred payments and flexible terms.
“We could create a customized loan product within a week, and you don’t see (larger institutions) that can do that. They have a level of bureaucracy they have to go through. What we can do is be nimble and make real-time decisions that are appropriate for what our members need,” Dahmen says. “The board of directors are also either filmmakers or in the industry because they’re from our membership and they understand our members’ needs.”

As a federally chartered cooperative, Media Credit Union has no shareholders — only member-owners who elect the volunteer board of directors, Dahmen says. Profits are reinvested to lower fees, improve technology, and support causes that members value most, she says.

The organization strategically funnels its limited marketing budget into sponsorships that reflect its members’ passions, such as local theaters, Spokane Public Radio, arts nonprofits, and film projects, Dahmen adds.

Media Credit Union was founded in 1938 as Inland Empire Paper Employees Credit Union. It currently serves about 1,200 members across multiple media and arts organizations, says Dahmen.

“We’re building a sense of belonging in the ecosystem of arts and culture, the storytellers of our community,” Dahmen says.

At Spokane-based PrimeSource Credit Union, CEO Annettee Babb says the financial institution focuses on hands-on community engagement.

“I would say credit unions in general are phenomenal about giving back to the community,” Babb says. “That gives us some differentiation in the market.”

A combination of community effort and collaboration helps keep small credit unions relevant, says Babb, adding that the credit union’s staff of 19 has logged more than 400 volunteer hours so far this year.

“This week, we’re doing spirit week and raising money for Children’s Miracle Network,” she says. “We just volunteered at (Spokane County Regional Animal Protective Services) last weekend. We’re a small team, but we’re mighty.”

PrimeSource was founded in 1935,
operates two branches in the city of Spokane and one in Spokane Valley, and serves about 6,800 members.

“I don’t think it’s any one single thing that smaller credit unions are doing to remain competitive and relevant — I think it’s a mixture of things,” Babb says. “And for us, we’re a very collaborative network. There are about 10 of us small credit unions in Spokane that do really well at working together. That collaboration helps us gain scale and maintain our footprint in the community.”

All three credit union leaders champion human connection, but also recognize that technology — including artificial intelligence — will be essential to future growth.

“We know we won’t be able to utilize AI the same way Wells Fargo is utilizing AI, but I do believe that it’s absolutely relevant to even smaller institutions,” Babb says. “It may not be in AI service tools … but it may be what we need as a growth strategy to help mine our data and make sure that we understand our members’ behaviors and market to them.”

For PrimeSource Credit Union, Babb says AI is not about replacing people — it’s about understanding members better and anticipating their needs.

“As long as we remain focused on those growth strategies, and things that keep us relevant, I think we have a fighting chance,” she says.

Dahmen says Media Credit Union is not avoiding AI, but will integrate it thoughtfully when it makes sense for their members.

“We have to fight to be personal. That’s going to be what is special,” Dahmen says. “The reality is, is that what’s going to become special is human connection in a world of AI.”

Progressions Credit Union, Vuong says, shares a similar philosophy of embracing technology strategically.

“We continue to invest in digital tools and member-centric services while maintaining the personal touch that sets us apart,” Vuong says. “Our operational efficiency, strong financial health, and deep local roots allow us to serve our members with agility and care.”

Vuong also notes that GoWest Credit Union Association, a six-state organization that serves more than 300 credit unions, “has contributed $4 billion and supported 27,200 jobs in the Washington economy.

“Small credit unions like us are a huge part of that,” she says.

Joe Adamack, senior vice president of legislative affairs at GoWest Credit Union Association, says that while big banks streamline for efficiency, small credit unions double down on accessibility and empathy.

“Spokane really highlights the fact there is a mix of small, medium, and large credit unions serving their members,” Adamack says. “They have a responsiveness to their members that continues to ensure they are able to serve their needs. They exist to serve them.”