Exclusive Interview: Velera’s Fagan Announces Retirement

Caldarelli to Take the Reins

By John San Filippo

On Mar. 22, leading fintech CUSO Velera announced that President and CEO Chuck Fagan will retire effective Oct. 1, at which time he’ll pass the president/CEO baton to Brian Caldarelli, who currently serves as EVP and Chief Administrative Officer. The afternoon of the announcement, Fagan and Caldarelli sat down with Finopotamus to discuss Velera past, present and future.

Brian Caldarelli (l) and Chuck Fagan

Navigating the Technology Landscape

Including his time at Velera predecessor PSCU, Fagan has been at the helm for more than a decade. PSCU merged with Co-op Solutions Jan. 1, 2024, to form the new organization.

Fagan reflected on that tenure, noting that PSCU underwent a fundamental shift in its relationship with technology. He explained that for the first 30 years of its history, the company primarily operated as a reseller of third-party products. Around 2015, the strategy transitioned toward building and owning their own technology stack.

“We have completely adapted to being comfortable with that, with 60 agile teams within the company, a financial base that allows us to build technology, and an expectation from credit unions that we’re going to be a leader around making technology available,” Fagan said. He added that consumer expectations have redefined the very meaning of service, making technology a vital component of the personalized service equation for credit unions.

The Build vs. Partner Strategy

When addressing the balance between building internal solutions and partnering with external providers, Fagan emphasized that Velera utilizes both approaches, heavily guided by client input. He highlighted the role of advisory groups, co-creation councils, and fintech engagement groups in shaping development.

“If you build it, they might come,” said Fagan, borrowing a catchphrase from Field of Dreams. “If you build it with them, they’re already there.” He explained that when credit unions collaborate on technology development, they are much more likely to adopt the final product because they had a hand in its structure.

The Road to Integration

Caldarelli, who has worked alongside Fagan for 11 years, discussed his focus on the 2024 merger that formed Velera, a company name that was announced later in 2024. He reported that the assimilation is more than 800 days in and 70% complete, remaining slightly ahead of schedule in certain areas, such as consolidating patronage dividend pools.

According to Caldarelli, the transition for customers has been seamless, with the same employees supporting the same products for the same customers. “The focus for us has been more on the internal side,” Caldarelli said. He mentioned that while the organization is consolidating more than 200 products down to fewer than 100, they are committed to a “best of the best” approach. This involves selecting the superior product from either legacy organization or developing entirely new solutions when necessary.

AI: Efficiency Meets the Human Heart

The conversation shifted to artificial intelligence, which Caldarelli identified as a key component of Velera’s future strategic plan. While the company has utilized versions of AI in fraud detection for decades, the focus is now expanding toward internal efficiency and member experience.

“I don’t know how AI would replace things like culture,” Caldarelli remarked. He argued that while AI can handle repetitive manual tasks, it cannot replace the relationships or the “heart” of the credit union movement. Fagan echoed this sentiment, suggesting that AI should serve as a tool to make employees faster and smarter.

Stablecoins and the Digital Asset Lab

Regarding digital assets, Fagan described a fragmented market where Velera is pursuing multiple partnerships rather than creating its own coin. The organization is currently collaborating with major players like Visa, MasterCard, and Fiserv, while also investing in fintech startups.

Fagan predicted that stablecoins will likely gain traction with SMB members before retail members. “Utilizing digital assets for some of their cash movement is more secure through the utilization of blockchain, and it also speeds up their cash flow,” he explained. He noted that while point-of-sale adoption is not on the immediate horizon, cross-border payments and small business cash flow are the most near-term use cases for stablecoins.

A Disciplined Transition

The leadership transition has been a multi-year process involving a dedicated CEO acceleration program for Caldarelli. Fagan expressed confidence in the hand-off, noting that the strategic plan and financial foundation are already in place to allow Caldarelli to focus on the market and technology investments.

“All I can do is be the best version of myself,” Caldarelli said when asked about following in Fagan’s footsteps. As for Fagan’s retirement, he plans to trade the boardroom for family activities and time on the water.

“It’s my intention to be involved with my grandchildren’s activities,” Fagan said. He added that he recently purchased a boat and looks forward to learning how to be a safe captain. "And I'll play more golf," he concluded. "I won't be able to play seven days a week, but I can certainly play two or three days a week."