ORLANDO, Fla.—Drawing upon his own experiences in boating in both smooth and rough waters, Chuck Fagan, who is preparing to retire as president and CEO of Velera, delivered an emotional and wide-ranging address at the company’s VeleraLIVE meeting, reflecting on its transformation since its big merger, the company’s performance and strategy, what he’s learned over 40 years, and what’s ahead.
The remarks will be the last for Fagan at the VeleraLIVE event before he turns over the CEO role to Brian Caldarelli. (The CU Daily earlier published an extensive interview with Fagan and Caldarelli here.)
“On Oct. 1 I will pass the torch to someone I respect deeply someone I’ve worked with closely for many years. Brian Caldarelli will become the next president and CEO of Velera,” Fagan said. “It’s not a fast decision, it’s one we made deliberately, thoughtfully, and collaboratively as part of a long-term succession planning process carried out by our board of directors and I over the past several years.”
“It’s always been important to me that when the time came to step aside the company would be left capable hands. and I couldn’t imagine a better leader for Velera’s next chapter than Brian,” he added.
Feeling the Moment
Fagan, who was emotional at several points during his remarks, acknowledged the personal weight of the moment.
“…This company and the many fantastic people that I’ve had the privilege to work with along the way have helped shape my career and who I am as a person and a leader,” he said, adding he’s looking forward to more time with family, including his grandchildren.
He said he will remain fully engaged through Sept. 30, working closely with Caldarelli and the board to ensure continuity.
“Over the months ahead Brian and I will continue to work closely together with the Velera team and the board to ensure that this transition is seamless, thoughtful and aligned with the commitment that we’ve always had to you, our partners,” Fagan said.
Fagan highlighted Caldarelli’s tenure and experience.
“Many of you in this room have known Brian for years, since he joined PSCU in 2012 as our chief financial officer, and he’s played a critical role in nearly every major initiative that we’ve undertaken,” he said. “In his current role as Velera’s chief administrative officer, he’s guided some of the most complex work we’ve ever tackled, including the integration of our combined companies (PSCU and Co-op Solutions), doing so with focus humility and a deep understanding of our business and our clients.
“He knows this company, he knows our people and our partners, and he knows the mission that collectively drives us. He is without question the right person to lead Velera into its next chapter and I couldn’t be more proud to see him step into the CEO role,” Fagan said.
Dramatic Change
Looking back, Fagan framed the past decade as a period of dramatic change for credit unions.
“Look back to 2015, there were103 million members, and more than 6,000 credit unions. Cash was still king for small purchases. Apple Pay had just launched and most of us were still trying to figure out what that meant. Zelle didn’t exist. But the world was about to change faster than any of us could have predicted,” he said. “What we did at PSCU and Co-op Solutions and today at Velera is make sure that when the world changed our credit unions were ready,” Fagan said.
Not Niche Players
He pointed to industry growth.
“Today there are 145 million credit union members and $2.4 trillion in assets. Credit unions added more than 40 million members over the last decade. These are not the numbers of a niche financial alternative these are the numbers of an industry,” he said.
Fagan said transformation extended beyond growth to how credit unions operate.
“In 2015 if you wanted to open an account you came into the branch the member experience was largely analog, and we were largely fine with it being that way,” he recalled. “Then, 2020 happened and in the span of about three weeks every credit union in America discovered how digital-ready they were. Some were ready, some were not. But what I’m most proud of is this industry adapted.”
Increased Investments
He cited a sharp rise in digital investment.
“Average credit union spending on digital transformation climbed from $220,000 per billion dollars in assets in 2021 to $780,000 by 2023, a more than threefold increase in just years,” Fagan said. “Credit unions partnered with fintech and mobile-first platforms and automated loan originations and embraced digital account opening. Digitally mature credit unions now experience up to twice the annual revenue growth rate of non-digitally mature credit unions and members respond.”
What the Numbers Reveal
He also highlighted Velera’s scale.
“PSCU was processing 2.3 billion transactions in 2015 when I became president and CEO. Today, we are processing more than 15 billion transactions. That growth came from relevance,” he said. “In 2026 there are about 4.300 credit unions compared to more than 6000 a decade ago, and more than 15,000 when I started my career back in the late 80s. But the financial institutions that remain are stronger larger and more capable than ever before. The number of credit unions over a billion in assets has grown from roughly 270 to over 430.”
The Key Challenges
Looking ahead, Fagan outlined key challenges.
“The road ahead will not be easy. What comes next will require resilience. There is artificial intelligence. Open banking. The ongoing fight over tax status. And the next generation of members have never set foot inside of the branch,” he said.
Fraud
“Fraud is getting more sophisticated not less in 2024 criminals stole over a trillion dollars globally the largest wealth transfer to fraud in recorded history and a McKinsey study found that by 2030 global fraud will exceed $16 trillion making fraud the third largest economy in the world behind the United States and China.”
“Last fiscal year, Velera prevented $2.5 billion in fraud from reaching our credit unions and their members,” Fagan added. “Every dollar…represents a threat that was stopped where the member never even knew there was a threat.”
Zeroes & Ones & More
“Technology costs are rising. The regulatory environment is uncertain. Loan delinquency rates have ticked upward. Gen Z approaches financial relationships very differently than any generation before them. They are digital natives. They are skeptical they will comparison shop their financial institution the same way they comparison shop streaming services,” he said.
Despite those pressures, he emphasized credit unions’ strengths.
“But what I know is this: credit unions have earned the trust of their members in a way that no bank, no fintech, no big tech company has. The cooperative model, the idea that people should own their financial institution. that the profits should stay in their community, that the member is not a customer to be sold to but a person to be served–that model has never been more relevant,” Fagan told attendees.
The North Star
Fagan said Velera has defined a clear purpose.
“We needed a north star to answer the question every single person in this organization and every credit union would eventually ask: what does Velera stand for? We accelerate partners’ success through innovative financial technology solutions that inspire. We help credit unions win for their members,” he said.
Financial Performance
Turning to financial performance, Fagan highlighted results for fiscal 2025.
“In Velera’s fiscal year 2025 we posted record revenue with double-digit growth from the prior year. Our assets grew, and our capital spend grew meaningfully because we made the deliberate decision to keep investing in the infrastructure, the technology and the products that this cooperative needs long term,” he said. “We are a more unified organization, one that can look at its own technology with clarity and say we’re growing, we’re healthy, and we’re moving in the right direction. We have a solid balance sheet, a strong cash position, and a capital investment line that went up, not down, even in a challenging year,” Fagan said.
He underscored Velera’s scale and impact.
“By the number of credit and debit accounts we manage we are just behind the institutions with household names and trillion-dollar balance sheets,” he said.
The Integration
On the integration of PSCU and Co-op, Fagan said progress has exceeded expectations.
“Velera’s integration efforts have now been underway for more than two years, and while fully combining our two companies will be a multi-year process, we continue to make excellent progress and are even ahead of schedule in many areas,” he said.
He cited milestones including combining patronage pools and aligning systems, processes and organizational structure.
Strategic Priorities
Fagan also outlined Velera’s strategic priorities:
- Making Service Our Signature
- Powering the Future with Technology
- Growing and Evolving the Business
- Moving Faster Together
“Strategy only works if it turns into execution,” he reminded.
Settling Disputes
Fagan stressed the company has clearly heard from credit unions about the time and money involve in card disputes, and he pointed to new solutions, including the Resolution Center platform, as a means of addressing both areas.
“They have been a pain point. That changes with Resolution Center. More than 600 of you in the solution and we are on track to bring all onboard in 2026. It was built with your direct input,” Fagan said.
Navigating Stormy Seas
Closing his remarks, Fagan used a nautical metaphor reflecting his passion for boating.
“You don’t fight the tide; you read it, you respect it and when the moment is right, you let it carry you faster and farther than you could have ever gone on your own,” he said. “The tide doesn’t negotiate. it doesn’t wait for calm conditions, or a convenient forecast. It moves with purpose and power. The tide doesn’t favor the biggest boat, it favors the crew that’s paying attention, the crew that knows how to move when the water says move.”
Not Sitting Still
Reflecting on the creation of Velera, he said, “We could maintain the status quo or we could accelerate…we chose acceleration we chose velocity.”
“The tide doesn’t sit still and neither do we,” Fagan said.
He closed with a message of confidence in the industry.
“I’m nearly 40 years in this industry. I’ve watched it consolidate, adapt, struggle and surge and I can tell you I remain very optimistic about what this industry and movement is capable of,” Fagan said. “You don’t turn your back from open water because the forecast is uncertain, you make sure your crew is ready. You check your navigation and you go. Our job…is to make sure that when you navigate the waters ahead you make the right decisions…that’s our promise—momentum for your mission.”
