Chip Filson
The Seated Boxer, an iconic ancient Greek work of art, shows a grizzled veteran of the ring, equal parts resigned and ready to spring into action.
What I like is a sense of respite from competition, the powerful athletic physique and the tiredness that surrounds his humanity. Is he a winner this day? Are there more fights to go? How will his efforts be remembered?
These are questions that all of us encounter, in literal or figurative ways, in our daily efforts.
I received three emails yesterday. All contained a common message about my ability to vote in an upcoming organizational election.
Be the vote that counts
Dear Vanguard investor,
As an investor in these securities, you have the right to vote on important matters. This is your opportunity to make a direct impact on your investments. Your vote counts!
The specific company in this alert was:
MAY 11, 2026 ANNUAL MEETING
Vote by May 10, 2026
There was a vote now link to the the company’s meeting notice, annual report and a ballot with boxes for yes, no or abstain. In addition to the election of directors and approval of the auditor. The final owner vote was as follows.
A Non-Binding Resolution to Approve the Compensation of the Company’s Named Executive Officers More Details
Vanguard has no role in this activity except to enable shareholders to quickly and easily exercise thee ownership role for persons who keep their stock with the brokerage firm. The owner must still make a judgement about their vote. Vanguard, which is owned by the investors in its mutual funds, is enabling corporate governance to be easily exercised for every publicly traded stock owned by its investors.
Dear Charles,
Voting is now open in this year’s elections for the Harvard University Board of Overseers and for Elected Directors of the Harvard Alumni Association (HAA). You may vote online or by paper ballot.
By voting , you can help shape Harvard’s future. Please take the time to learn about the candidates and vote.
The vote now link goes to a sign-in that includes name, college identifier and my unique registration number. Once entered the complete ballot and candidate information is listed. This same information , ballot and a return envelope is also mailed to every graduate.
Dear Charles,
We are conducting the 2026 Annual Meeting by Electronic Transmission as provided in Section 411 of the Amended and Restated Bylaws of Patelco Credit Union effective April 28, 2017 (the “Bylaws”).
The Annual Meeting will be hosted by video conference on April 30, 2026, at 5pm PT.
We welcome you to join us and take this opportunity to submit questions in advance. To register, please send an email to annualmeeting2026@patelco.org no later than 11:59pm PT on Friday, April 24, 2026.
Please note that there is no new business to discuss. The only matter requiring a vote of the members in attendance is approval of the 2025 Annual Meeting minutes.
Board of Directors – Four (4) positions to be filled by acclamation of the Board of Directors as provided in the Bylaws:
Collen Cabey
3-year term
Debra Chaw
3-year term
Vickie Rath
3-year term
Jesse Rivera
3-year term
Section 501(D) of the Patelco Credit Union Bylaws provides “If no more nominations for vacant positions are received than the number of vacant positions, the credit union may, without further action, declare that those nominated and qualified to be elected are elected.” Four candidates have been nominated to fill the four open Director seats. Therefore, the Directors nominated will be approved by acclamation of the Board of Directors as provided by the Bylaws.
The close of this email is two paragraphs of general programs and services from CEO Erin Mendez beginning with these words:
As we move into 2026 and prepare to celebrate Patelco’s 90th anniversary, our mission remains clear . . .
This Official Notice of the Annual Meeting, has no Vote Now or register here links. An owner must email to register, and then annual meeting details will be available for download after April 13.
Across most organizations which claim to be member or shareholder owned, the appearance of democratic practice is an important part of their public character and responsibility.
Harvard University has been under constant attack since the first month’s of the Trump administration. Yet it has a continuing campaign to have its several hundred thousand graduates vote for the most important leadership roles in the corporation.
Vanguard did not have to facilitate the ability of shareholders whose company stock is kept at the brokerage. But it does this as a service which facilitates the most important duty of shareholders, probably in the hundreds of thousands of emails pevery month.
Voting is both a trust and a confidence builder by an organization’s leadership with its most critical constituency-the owners. It is also a legal responsibility underlying owner governance at the annual meeting.
But appearance may have no substance supporting the process. Patelco’s efforts to prevent any normal or meaningful interaction by owners is clearly stated. Director succession is completely controlled by the board. It is a leadership group that seems unwilling or even afraid to interact with its member-owners. This process is not a confidence builder for Patelco’s leadership or the persons it serves.
When democratic processes have no substance, the other leadership model that prevais is rule by authority. That approach is not one that respects the role of its member-owners or creates a common bond of enthusiasm and support.
Of all the democratically designed organizations in America, one would hope that the values-based, cooperative system’s better angels might be a shining example.
Yesterday’s post on AI’s promises and dangers, prompted two responses.
One is a personal reflection by a dedicated AI user and one from an organizational point of view based on NCUA’s application. Ironically both reach a similar conclusion about the ongoing need for human insight.
(by Lara Hoyen, my daughter, posted on LinkedIn)
I felt an urge today to write down my thoughts today.
I didn’t want AI to help, though I regularly ask for assistance. To script a tough conversation with a co-worker. To translate an interview transcript into a compelling blog post. To summarize a 15 year story into a compelling couple of paragraphs.
Recently Claude’s been unlocking even more for me. I’m able to clean up years of data files and create interactive dashboards. I’ve launched webforms to standardize inputs. I’ve automated weekly email reports with project status changes.
These types of tools used to have to wait until they could move from a backlog into a sprint. Then my data team co-workers could built it.
A recent Harvard Business School study found that power users of AI, rather than being freed by AI, are busier. It intensifies their workload because they can take on broader responsibilities. The article talked about AI users experiencing “Brain Fry,” with symptoms such as mental fog and decreased focus.
This describes exactly how I’m feeling.
I’m reading to seek wisdom as I consider my response to the political upheaval that is impacting our nation, community, and neighbors. Hannah Reichel’s devotional, “For Such a Time as This,” describes the Christian church’s response to the rise of Hitler in Germany as a way to give perspectives and inspiration to Americans today. She writes about the power of letters shared between dissidents. For those that wrote them and received them, these messages helped to “clarify their thoughts, name their realities, and strengthen their resolve.”
I want to make sure I don’t lose these abilities. To reflect, apply, synthesize.
Even as I see the amazing opportunities that AI is unlocking for a resource-strapped NGO (and 501 C 3) with more work to do than people to do it.
Ann Lamott, an author I love, released a book recently on improving your writing. She explained that the power of communicating, is how we “awaken to life and to beauty… our own huge creative and imaginative spirits.” She laments that we should “stop hitting snooze… look around, breath it in, and scribble it down.”
That’s why I needed to write this post.
I wanted to reflect on the risk I face of inadvertently outsourcing my thinking to AI vs. using it as a smart assistant. I wanted to name the impact I am experiencing cognitively because of my use of these tools. And, I want to strengthen my resolve, as an antidote to these consequences, to walk through each day mindfully – noticing, reflecting, sharing, and connecting.
I’d love to hear your practices that keep you human, as you work with AI. And, where you’re seeking wisdom for such a time as this.
(from RAndy Karnes, retired CEO, CU*Amswers)
What we miss in AI is that behind it all is a systemic approach to learn. Some one or thing said learn like this! Practice and learn some more. Why AI will not become the most effective teaching template for future generations is not much talked about.
The view from my desk window. Nature’s beauty brings comfort and joy.
Artifical intelligence brings hope with worry. Credit unions and consumers are using this capability very quickly.
On March 26, NCUA’s acting director of examination and supervision testified before Congress on the agency’s reviews of credit union technology. Here is an excerpt on AI by NCUA staff:
Beyond supervising how credit unions adopt technology, NCUA is also exploring how technology can enhance our own operations. NCUA is currently using artificial intelligence for content generation, to flag anomalies in Call Report data submissions, forecast loan performance to support risk analysis, identify credit unions with elevated risk, and enhance cybersecurity operations.
The foundational AI concern is from a post by writer and financial analyst Andy Tobias: We need — urgently — to figure out (a) how to protect humanity from a superior species; (b) how to avoid economic catastrophe and, instead, harness A.I. for the benefit of all. (link)
He cites one expert’s observation: The experience that tech workers have had over the past year, of watching AI go from “helpful tool” to “does my job better than I do,” is the experience everyone else is about to have. Law, finance, medicine, accounting, consulting, writing, design, analysis, customer service. Not in ten years. The people building these systems say one to five years. Some say less. And given what I’ve seen in just the last couple of months, I think “less” is more likely.
Here is the full article, Something Big is Happening.
Andy recommends this new documentary that interviews five CEO’s of the largest investors in AI as well as academic experts. In sum, the dangers are real as AI become pervasive in all activities.
On Apple TV: The AI Doc: Or How I Became an Apocaloptimist.
Now back to the yard:
Public protests can be a healthy exercise for a democratic society. Demonstrations have multiple benefits for participants and onlookers,
They create new connections among individuals with similar views.
They raise public awareness on deeply held issues.
They encourage further organization when people know they are not alone.
They push concerns to the front of public debate.
They can be prophetic, proclaiming future hope from current circumstances..
They bring new energy to ordinary public discourse.
They embolden new people for civic leadership.
Or, as one participant said simply, “I felt I had to.”
These motivations are especially compelling when the events are massive and peaceful, as this weekend. Here is a sample of messages that caused people to stand on streets and share their views with neighbors–from the general to the specific.
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NCUA leadership is critical to the integrity and character of the cooperative system.
The board whether one, two or three members is responsible for setting priorities and precedents that are the foundation of NCUA’s relationship with the credit union community.
As a regulator of cooperatives and overseer of the system’s mutual solutions, NCUA’s role is much different than other financial regulators.
A critical example of this innovative industry collaboration was the redesign of the NCUSIF as the system’s collective capital fund. It was a joint effort with all parties making commitments to each other about their future stewardship of this unique federal model.
Many of these undertakings were so vital they were included in the enabling legislation as well as described in detail in the Agency’s Annual Reports and other official communications.
An important agreement to the 1% open-ended funding was the requirement that credit unions receive a dividend when the yearend fund balance exceeds the normal operating level (NOL) fund cap. The cap was set at 1.3% by law.
In the credit union Membership Access Act, the board was given flexibility to raise the NOL to as much as 1.50%. In 2017 the board elected to do this to accommodate the surplus funds from the Temporary Corporate Stabilization Fund merger. Those excess funds were then used to write off losses in the taxi medallion failures. But the NOL was never set back to its historical level.
A critical role of the NCUA board is setting the annual the Normal Operating Level (NOL) cap of the fund. Earnings beyond this level are distributed as a dividend to credit unions recognizing not only their collective performance but also their open-ended funding commitment with the 1% true-up of their capital deposit.
Kyle Hauptman explained his understanding of this board’s responsibility in a December 2022 board meeting when Vice Chair. (link) This is the text.
Just to review, the Normal Operating Level (NOL), as described in the Federal Credit Union Act, can be set by the NCUA Board from 1.20 percent to 1.50 percent. The NOL is our desired level of equity in the Share Insurance Fund.
The NCUA Board has the discretion to assess a premium when the equity ratio falls below 1.30, but only to bring the ratio up to 1.30 as allowed by the Federal Credit Union Act.
The 1.33 Normal Operating Level represents the point at which the Share Insurance Fund is required to return funds back to insured credit unions should the equity ratio exceed 1.33.
Now a few months back, I voted, along with the rest of the Board, to lower the NOL to 1.33 from 1.38, where it had been for several years. Now I don’t pretend to know that 1.33 is the magic, perfect Net Operating Level. I do know that, for the moment, moving it from 1.38 to 1.33 is a moot point because the Fund isn’t close to either number.
And if someday we wind up back in that range, the correct NOL level will be a high-class problem to worry out. Given the current rate environment, I do not believe any of us believes we will be getting close to that number. That said, every basis point over 1.30 represents money credit unions could put to good use.
I appreciate the additional information on how the Normal Operating Level is calculated. We need more of this kind of transparency. In the spirit of more transparency, I ask that we acknowledge our responsibility to show why 1.30 is not adequate — as I said, every basis point over 1.30 is money credit unions could be investing in their members.
It’s worth emphasizing that credit unions are doing their part. I would like us to recognize this fact via finding ways to factor actual losses incurred into our loss reserves calculation. After all, the higher the loss reserves, the lower the equity ratio. More importantly, the actual losses incurred year-over-year may be a decent predictor of the fund’s reserve needs. But of course, I acknowledge that insurance isn’t about normal circumstances. The whole point of insurance is for the unexpected, the unusual, the chaotic.
One additional factor in determining the adequate level of the fund’s equity is how well we manage our budget. Coincidentally, the budget is also on today’s agenda. The cost of managing the risk in the fund directly impacts the equity ratio. The more NCUA spends on itself, the lower the equity ratio. NCUA can’t, in good conscience, spend additional millions on programming for ourselves, the 1,200 NCUA employees, while also claiming our Insurance Fund needs more cash.
I realize today’s briefing is strictly about the Normal Operating Level calculation, but I hope you’re picking up what I’m putting down. (underlining added)
The NCUA stopped presenting any analysis justifying an NOL above 1.3% for the past three years. In the December 2025 NCUSIF update there was no mention of reviewing the NOL.
I asked NCUA’s public affairs office how and when the NOL for 2026 was set:
The reply: Regarding Normal Operating Level for the NCUSIF:
The latest update of this referenced NOL process is shown as: Last modified on 01/25/22. However, the last two times staff provided their analysis and assumptions for a 1.33 NOL cap the model when run supported a lower cap.
Hauptman’s second factor in NCUSIF’s net income is NCUA’s operating expenses transferred via the Overhead Transfer Ratio (OTR). Chair Hauptman’s view is clear: The more NCUA spends on itself, the lower the equity ratio.
The public affairs office’s March 17, 2026 response when asked about the OTR rate:
As the sole board member Chairman Hauptman is uniquely able to implement his views on the NOL, or as he stated, “Pick up what he put down.”
That would be a legacy worth noting and a mutual commitment reestablished. Or as he so clearly argued: every basis point over 1.30 is money credit unions could be investing in their members.
As I went downtown during rush hour yesterday, a gray haired, older lady appoached me with a small handout at the escalator. It was a snall flyer for where to stand locally in the No Kings rally this Saturday around the country at over 3,000 locations.
But democratic duties are not limited to national and local politics. Virtually all volunteer, non-profit and community organizations have some form of member oversight. This can be the elections of representatives or to changes in bylaws and/or structure.
If one owns any publicly traded stocks, it is likely there will be reminders of the annual meeting with proxy solicitation calls. In this case the voting is based on share holdings, but voting none the less.
Credit unions can learn from these other exercises in organizational governance. Especially what can happen when democracy is usurped by those in control at the moment.
Jim Blaine the former CEO, observed that an organized minority in authority will always defeat a disorganized majority. And democratic majorities are, by definition, rarely in unanimous agreement. Not everyone in Virginia thought the idea of Give Me Liberty or Give Me Death, was a great choice.
One of the most important monitors of our various democratic processes is the press. This can be public press and broadcasts, industry publications, bloggers and those using social media to raise concerns, and even individual actors writin opinions for their local outlets. Here is how the press is covering a story of usurpation of democractic control in a major local powerful institution.
Recently the Houstan Chronical completed a five-part investigative series of a takeover of one of the largest Baptist Churches in the city by its pastor. (link)
While the details are behind a paywall, here is a summary of events.
Houston’s Second Baptist Church, with about 90,000 members, is a church at legal war with itself, since a group of influential congregants calling themselves the Jeremiah Counsel sued church leadership in 2025.
They’re challenging revised bylaws established in 2023 that deny lay members a vote in important church decisions, including the selection of senior pastor Ben Young, son of the church’s popular long-time leader, Ed Young.
The bylaw change was in a single sentence that seemingly slipped by most people and put the church at odds with its own faith: “Members are not entitled to vote in person, by proxy or otherwise.”
With those 12 words, the congregation at the now 98-year-old church lost more than its vote. It parted ways with a core tenet of Baptist doctrine: democratic rule.
The revolt started when a group of members realized they had given away their authority to vote on church business after an election in which hardly any congregants participated.
It didn’t take long for several influential church members — who are now suing to reverse changes made in that crucial vote — to realize where the new bylaws came from. They bear a striking resemblance to the bylaws of Fellowship Church in Grapevine.
Fellowship Church in Dallas, is another megachurch with family ties to Second Baptist. Second Baptist quietly copied Fellowship Church’s bylaws — and silenced its members.
One article in the series is headlined: How Second Baptist Church sacrificed its Democratic Principles: ‘You can’t fire the king’
The human tendency to rule by authority versus the more complicated exercise of democratic leadership is present in all organizations. But especially in credit unions. Because money amd, its use, is combined with power.
The result is that boards and senior management strive to limit any meaningful say in their oversightand leadership roles. Nominations for board seats are controlled by existing directors and limited to the exact number of vacancies. No voting needed, just ask members to approve by acclamation.
But when there is the prospect of members rising up, the next step is to copy the practice of Second Baptist. Specifically change the bylaws to make it impossible for members to self-nominate or to challenge the board’s control of the election process.
In the traditional FCU bylaws, members can submit a petition with 500 names for board nomination or to call special member meetings. The top three credit unions by assets,Navy FCU, SECU (NC) amd PenFed all took steps to make this member option impossible. Instead of a fixed number, the bylaws were changed to require a percentage of total members to sign the petition.
PenFed’s change came after a self-nominated candidate qualified for election. SECU’s board changed its bylaws after members challenged the closed board process in an open election. The board changed the bylaws and election procedures to make the process very difficult for member-nominated candidates to qualify.
All three bylaw changes to the long standing democratic process were approved by the reglators with members having no say or even knowledge.
Democratic oversight takes integrity, character and continuous vigilance. It requires a free press in all forms to cover uncomfortable truths and lapses in duty by those in power. Power in terms of community and local influence and those charged with responsibility for public oversight.
One of the landmark events in credit union land was when CUNA fired its presient. The story in brief:
Herb Wegner was an avid pilot and owned his own plane. He had an agreement with (CUNA) to be reimbursed the equivalent of a first-class ticket whenever he flew his own plane for work. However, disputes over these expenses became a major point of friction with the CUNA Treasurer, Fred Krause.
At a board meeting in 1979, Krause reportedly announced he was “tired of fighting Herb about airplane expenses” and unexpectedly moved to fire him on the spot. The motion passed, stunning most of those in attendance.
While there were other factors at play, today the highest honor credit unions bestow on their leaders is called the Herb Wegner award. An irony which shows the cooperative system’s ambivalence in managing its own shortcomings.
Democracy takes practice which is the root of the word participation. Here is my sign for Saturday.
,Over the past two months I’ve been hearing something that honestly breaks my heart about the credit union movement.
Several leaders at smaller, growing credit unions have told me they’re receiving unsolicited emails encouraging them to merge into larger institutions.
(I literally just jumped off a MiniBranch call with a local credit union CEO who just received an email today)
Sometimes these emails are framed as:
“Strategic partnerships.”
“Future sustainability.”
“Member opportunity.”
But in many cases, what’s really happening is much simpler.
Large credit unions are actively recruiting smaller credit unions to merge, and some of the individuals sending those emails are financially incentivized to do it.
In some cases, the incentive can be tens of thousands of dollars per successful merger conversation.
After a merger, the acquiring credit union may even bring the CEO on board to help identify and recruit the next credit union to merge. (As we have seen in a recent failed attempt thanks to the members)
I understand consolidation happens in every industry. But credit unions were built on something different.
Local leadership.
Local relationships.
Local service.
Many of the “small” credit unions I work with are actually healthy, innovative, and deeply connected to their communities.
They don’t need to disappear.
They just need the right tools, technology, and support to keep growing.
So if you’re a CEO or board member at a smaller credit union and you receive one of these emails, my encouragement is simple:
Take a breath.
Ask questions.
Remember the mission you were built to serve.
Because the credit union movement doesn’t get stronger when independent institutions disappear.
It gets stronger when they succeed.
And there are a lot of people rooting for that.
So, to all the Small (Growing) Credit Unions out there fighting day in and day out for your members, Don’t Stop! Keep Fighting!
Be sure to reach out to Joshua Urbick, CCUFC and Doug Wadsworth who are doing some pretty amazing things!!
March is named after the Roman God of war. Events so far are proving this month worthy of its name.
On March 21, the President posted the following warning to Iran on Truth Social:
If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!
In a phone call with the business channel CNBC on Monday, Trump announced a five day pause for further “negotiations.” The US stock market instantly took off and oil prices fell.
In this moment of March Madness, would a win-win solution be to send ICE to confront Iran’s Revolutionary Guards versus further deployment in US airports?
Recently I asked the former, now retired CEO of CU*Answers, to explain his observation that every organization is only one or two CEO transitions from failure. He did not necessarily mean financial failure, although that can happen. Rather, it is the loss of founding purpose coupled with the desire of new CEO’s to make their mark.
Cooperatives and their support organizations are especially vulnerable due to their passive, virtual democratic ownership model.
He compares this loss of identity to how some music lasts for generations, even centuries. These works are performed time and again in different eras, whereas other compositions or songs, while popular are long gone and forgotten. Risk from leadership turnover is high because each change can lead to a loss of past harmonies that brought everyone together.
“When the distinctive song that unites the hearts of a cooperative community’s stakeholders is no longer heard, the mission cannot be sustained.”
That image—a shared song—captures something essential about credit unions. At their founding, every cooperative has a set of beliefs, commitments, and lived experiences that bind members, volunteers, and staff in common purpose. It is not written down in a strategic plan. It is carried in memory, reinforced in stories, and expressed in everyday decisions.
But here is the risk: most credit unions are only one or two CEO transitions away from losing that song entirely.
New leadership often arrives with energy, ambition, and a forward-looking mandate. That is necessary. But too often, the past is treated as irrelevant—something to be modernized, replaced, or quietly set aside. The assumption is that the future is theirs alone to define.
When that happens, the cooperative’s legacy—its relationship competitive advantage—begins to disappear.
A useful parallel comes from music. Why do some works endure for generations—classical compositions, religious hymns, even certain popular songs—while others fade almost as quickly as they appear? There is no generational transfer because there is no institutional memory.
The difference is not merely quality or changing musical tastes. It is resonance. The music that lasts carries meaning across time. It is repeated, shared, adapted, and remembered because it speaks to something deeper than the moment in which it was created.
Credit unions are no different. Their founding “songs” endure only if they are remembered, retold, and made relevant for each new generation.
Without that continuity, erosion begins.
Members’ memories and loyalty fade. Their connection to the original purpose weakens as daily life, changing expectations, and competitive alternatives crowd in. The member’s song and the credit union’s song drift out of harmony.
Board volunteers lose the founders’ passion. Pressed by governance demands and operational complexity, they can shift from stewards of a mission to overseers of a business. The language of purpose gives way to the language of performance. The song becomes more professional—and less meaningful.
Management and staff follow the new CEO’s cues. Career ambitions push them toward conformity. Success is redefined in terms of growth, scale, and financial metrics. Gradually, a new song replaces the old—one that sounds increasingly like every other financial institution in the market.
And when that happens, the cooperative has not failed. It has simply become indistinguishable.
The challenge is not nostalgia. It is stewardship.
If credit unions want to sustain their independence and distinctiveness, they must actively renew their institutional memory. This is more than archiving documents or celebrating anniversaries. It requires intentional processes to capture the stories, values, personalities and decisions that defined the organization and industry—and to embed them in leadership development, succession planning, and strategic priorities.
Many cooperatives struggle with strategic myopia. Both inside and out of the industry the world sees credit unions as a tactical model for banking. From the beginning, credit unions were a community’s way to embed the customer-owner’s passion, heart, and needs in a shared solution. The cooperative song’s evolution is at the core of credit union resilience.
The truth is simple: institutions that forget their song eventually stop singing it.
And those that stop singing it lose the very reason they were created in the first place.
The move away from the virtual world of the Meta universe was announced several months ago in business news updates such as this WSJ December 4, 2025 article excerpt:
The decision marks a sharp departure from the vision Zuckerberg laid out in 2021, when he changed the name of his company to Meta Platforms, from Facebook, to reflect his belief in growth opportunities in the online digital realm known as the metaverse. Meta has seen operating losses of more than $77 billion since 2020 in its Reality Labs division, which includes its metaverse work.
This investment was to be the future growth engine for the company. There was much consumer buzz around the Oculus and Quest extensions of virtual reality glasses. Public discussion of virtual worlds including actual sales of real estate in these virtual landscapes were widely portrayed as the next big investment opportunity. People could now anticipate creating virtual avatars of themselves and even virtual friendship companions.
The metaverse was launched four and one half years ago. Now Meta’s Horizon Worlds VR platform will be closed on June 15. The app will no longer be available. No more virtual futures to escape to from this real world.
One article estimates that the Meta division responsible for VR and metaverse development has accumulated nearly $80 billion in losses since 2020. In the fourth quarter of 2025 alone it posted an operating loss of more than $6 billion.
The next frontier for Meta is now AI. What does Meta’s strategic misadventure mean for credit unions? What lessons might be inferred as the entire technosphere rushes to spend hundreds of billions in the data centers which will support multiple AI applications? Are there potential warnings about other virtual creations especially in the area of stable coins, tokens and bitcoin financial products?
If an $80 billion investment can fail in an established company with hundreds of millions of online media users, what does that suggest for credit unions investing millions in new fintech and virtual products touted as the next frontier of finance?
While there were product and creative shortcomings with Meta’s initiative, I believe there are larger lessons for credit unions.
I am not a gamer and have not tried VR. Readers who have this experience may have their own to add.
However there are examples where credit unions bet the farm or lost significant corporate momentum from an initiative that looked plausible, but failed. One needs only look at individual 2025 yearend performance outcomes for immediate examples.
There is always great interest in the next big innovation affecting the financial services industry or the members of a credit union. Today the two big things are the use and impact of AI and the expansion of virtual finance products such as stable coins and alternative investments.
The final takeaway from Meta’s shutdown is that perhaps there is more life in traditional business models even as one experiments with the next big idea. Even AI.