By Homer Fager
The Third Industrial Revolution period of the 1950s through 1990s witnessed the beginning of the decline of the small credit unions. In the 1960s the number of credit unions, including state and federal institutions, exceeded 20,000. The 1980s brought new technology to the industry from personal computers to the introduction of the first credit union-sponsored ATM. During the next three decades 10,000 credit unions were lost and in the last decade alone 2,000 have vanished.
Continuation of this rate of decline means the “small entity” credit unions may be lost within the next 15 to 20 years.
These Third Industrial Revolution banking structural changes were the beginning of the decline of the “small entity”credit union.
The Fourth Industrial Revolution, also referred to as 4IR or Industry 4.0, has changed the 21st century and will continue to change our society as did none of the other three revolutions. More has been accomplished in the last 250-plus years of human history than during the previous 2,500 years.
According to The World Economic Forum the first three periods included mechanical equipment, electricity/mass production, and electronics/automated production, respectively. The fourth revolution is assumed to have began after the 1990s but before 2013, the year Klaus Schwad first published his book, “The Fourth Industrial Revolution.”
Now, 5G (fifth generation technology of broadband cellular networks) and COVID-19 have advanced the application of the Fourth Industrial Revolution, with “cyber-physical systems” blurring the lines between the physical, digital, and biological worlds of influence. Per Klaus Schwab, “87% of young people in the U.S. say their smart phone never leaves their side and 44% use their camera function daily.”
He further noted how “now the world requires companies to respond in real time wherever they are or their customers or clients.”
The Millennial generation, also known as the “now gen” desires to conduct retail activities in real time, from their purchasing of goods to their retail banking P2P relations. The traditional banking industry faces serious threats from emerging digital modes to accessing banking services to being irrelevant at every stage of 4IR massive technology disruptions.
What Must Be Understood
As we close out 2025, we want to take a moment to extend our heartfelt gratitude to each and every member and supporter of the National Council of Firefighter Credit Unions Inc (NCOFCU). For the past two and a half decades, your unwavering support and dedication have been instrumental in helping us achieve our vision of becoming the leading credit union association dedicated to serving first responders and their families. Thanks to your commitment, we have prioritized education for your volunteer directors and staff, ensuring they are equipped with the knowledge and skills to serve your credit union communities effectively. Together, we have elevated the operational excellence of credit unions through targeted training and support, making a real difference in the lives of first responders and their families. Your involvement has been the cornerstone of our success, and we are truly grateful for the trust you have p...
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