What Credit Unions Can Learn from Virginia Credit Union’s Digital Transformation

Guest Editorial by Alex Levy, Blend Product Manager

Credit unions have always thrived on trust, community, and personalized service. But as member expectations shift toward faster, more seamless digital experiences, many credit unions are rethinking how they deliver that value. The question becomes: how do you modernize without compromising the personal, values-based service that defines credit unions?

Alex Levy

For Virginia Credit Union (VACU), that transformation has been more than a technology upgrade. It’s been a full-scale shift in how they engage with and support their members. After nearly a decade of developing in-house digital tools, the credit union recognized it needed to evolve faster, unify experiences across channels, and scale more efficiently. The catalyst? A 2024 merger with Member One Federal Credit Union and a strategic decision to rethink their digital foundation from the ground up.

This article shares five key takeaways from VACU’s transformation that other credit unions can apply today, whether you’re just starting your digital journey or re-evaluating your existing approach. It's a roadmap not for buying tech, but for leading with purpose.

1. Use Digital Transformation to Simplify, Not Fragment

VACU’s first priority was improving its “front door”- how members apply for accounts and loans. Like many credit unions, they had accumulated a patchwork of systems over the years, especially after a 2024 merger with Roanoke-based Member One Federal Credit Union. Rather than bolt on more tools, they took a different path: unify the experience.

"We saw an opportunity to break free of siloed, individual applications and create a digital application ecosystem for consumer loans, mortgage, membership, deposit accounts—all of it," Jason Moore, Director of Digital Growth at Virginia Credit Union (VACU) explained. "We wanted to provide our members with a system that would have the same look and feel whether they are applying for a loan or opening a deposit account. Over time, it becomes familiar to them and it's all controlled in the same place."

If your credit union has multiple digital touchpoints that operate independently, VACU's approach offers a roadmap. Start by mapping your members’ complete journey across all services. How many different interfaces does a member encounter when opening an account, applying for a loan, and accessing other services? Where are members having to re-enter the same information?

Takeaway: Familiarity breeds confidence. When members recognize the interface and process across different products, they're more likely to complete applications and engage with additional services. Consider starting with one successful integration and building from there, just as VACU began with mortgage solutions before expanding.

2. Know When to Move from In-House to Strategic Partners

VACU started early with digital, building its own membership, account opening, and consumer lending applications in house back in 2013. But eventually, those custom systems became a barrier to scale and innovation.

"It was the right time for us to explore the market,” said Frank Macrina, Senior Vice President of Products & Channels. “We needed a platform that was flexible, innovative, and that would allow us to tailor it and, ultimately, differentiate ourselves."

If your credit union built digital solutions in-house over the past decade, you may be facing the same crossroads VACU encountered. Legacy systems that once provided competitive advantage can become constraints when they limit your ability to meet evolving member expectations.

The key is recognizing when to transition from internal development to strategic partnership. Ask yourself: Is your development team spending more time maintaining legacy systems than innovating? Are members experiencing friction moving between different applications? Can you realistically keep pace with member expectations using current resources?

When evaluating partnerships, focus on flexibility, innovation velocity, and integration capability rather than just features. The right partner becomes an extension of your team, not just a vendor.

3. Use Technology to Amplify (Not Replace) the Human Touch

What sets VACU's approach apart isn't just the technology itself, but how it's being leveraged to strengthen relationships with members. Too often, digital transformation is seen as a replacement for human interaction.

“Technology should enhance, not always replace, the human touch, particularly in credit unions who are so focused on building generational relationships,” advises Reva Rao, Head of Digital Transformation at Blend.

At VACU, it’s the opposite. By automating routine processes like data entry, income verification, and account funding, the credit union has freed up staff to focus on the moments that matter most, when a member has a complex question, needs financial guidance, or is making a major life decision.

Credit unions must frame digital transformation as member and staff empowerment, not replacement. Consider how automation can handle routine tasks so employees can focus on relationship building and complex problem-solving. What training will your staff need to leverage new tools effectively?

The most successful transformations use technology to amplify human connection rather than replace it. When routine processes are automated, staff can focus on the high-touch interactions that differentiate credit unions from other financial institutions.

4. Seize Natural Inflection Points for Bold Change

For VACU, digital transformation isn't just about efficiency – it's about creating space for what truly matters: empowering members to live confidently and achieve greater financial success. By embracing innovation while staying true to their member-first values, they're showing what modern credit unions can accomplish when technology and human connection work in harmony.

"We don't just want to wait out the rates. We're really trying to look forward," Mitchell Jones, Senior Vice President of Mortgage Lending explained. "There's also a lot to be done in the affordable housing space. We're deeply committed to sourcing down payment assistance and grant funds for our applicants."

VACU strategically used their merger as a catalyst for broader digital transformation. Rather than implementing changes during stable periods, they leveraged the natural disruption of organizational change to introduce comprehensive improvements.

Look for natural inflection points in your credit union – mergers, significant growth periods, regulatory changes, or leadership transitions – as opportunities to implement comprehensive digital transformation rather than incremental fixes. These moments create organizational momentum, reduce change fatigue, and provide stronger justification for larger technology investments.

5. Focus on Member-Centered Outcomes, Not Just Technology

For Virginia Credit Union, success wasn't defined by launching new systems. It was defined by how those systems improved the member experience.

Partnering with Blend, VACU built a unified digital application ecosystem that makes it easier for members to open accounts, apply for loans, and engage with the credit union across products and channels. But more importantly, they measured progress based on what members actually felt and experienced:

• 70% of member debit cards are now funded immediately upon account creation, removing delays and creating instant value

• 90% of members reported feeling supported throughout the digital application process, up from 70% before implementation

• 83% of members said the process was easy to complete, compared to 77% previously

By working with a strategic technology partner like Blend, VACU was able to move beyond incremental fixes and build a foundation for ongoing innovation. The focus stayed on what mattered most: making it easier for members to take the next step toward their financial goals.

Member outcomes should guide every digital initiative. The right technology partner helps you deliver faster service, but more importantly, they help you deliver better service, the kind that builds trust, satisfaction, and long-term growth.

---

Alex Levy is Product Manager at Blend Labs, Inc., a leading origination platform for digital banking solutions. Financial providers – from large banks, fintechs, and credit unions to community and independent mortgage banks – use Blend’s platform to transform banking experiences for their accountholders. To learn more, visit blend.com or connect with Alex on LinkedIn.