New White Paper Highlights How Credit Unions Can Retain Member Wealth in the Digital Investment Era

A newly released white paper, “The Evolving Role of
Wealth Management in the Credit Union Model,” examines how digital investing is reshaping member expectations and why credit unions must evolve their wealth strategies to retain deposits, deepen relationships, and remain competitive in the modern financial ecosystem.

“When we analyzed our transaction data and saw $48 million leaving the credit union in a single year, the conclusion was straightforward. Our members were investing — just not with us. The opportunity wasn’t hypothetical. It was measurable,” said Matt Beaulieu, AVP – Member Services, Service Credit Union.

According to the white paper, Service Credit Union identified annual transfers across approximately 53,000 transactions moving from member accounts to external investment platforms, signaling a significant shift in member behavior and a broader strategic risk for financial institutions. 

The report features Service Credit Union’s partnership with TAPP Engine as a leading case study in how institutions can respond to measurable investment outflows by providing access to self-directed investing tools within the credit union experience.

The white paper outlines how E-Invest was developed to address this challenge by offering members*:

• Self-directed Brokerage Accounts
• Automated Robo-Advisory Portfolios
• Fractional Share Investing
• Seamless Digital Account Opening
• Single Sign-on through Online Banking
• Real-time Movement of Funds between Banking and Investment Accounts

Industry data cited in the report further reinforces the urgency of the issue, noting that 80% of credit union members express interest in personalized financial guidance, while fewer than one-quarter of credit unions currently offer professional advisory services.

“Members are actively investing, but many institutions still lack a digital wealth solution within their own ecosystem,” said Mark Guglielmo, President of TAPP Engine Securities and TE Advisors LLC. “When investment relationships move outside the credit union, broader financial relationships often follow. Our goal is to provide a tool to keep the relationship with the credit union.”

The report also positions digital wealth platforms as a strategic response to the coming $84 trillion intergenerational wealth transfer expected through 2045, 3 emphasizing the need for institutions to build investment relationships earlier in the member lifecycle. Digital wealth is no longer simply a product extension — it is becoming a core component of relationship retention, non-interest income growth, and long-term member engagement.

The full white paper offers strategic insights for credit union executives, board members, and digital banking leaders seeking to strengthen member relationships and preserve assets within the cooperative model.

Read the Full White Paper

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