Onsite at GAC – Chuck Fagan on Velera’s Vision: Scale, Technology, and Partnership for Credit Unions

By John San Filippo

The America’s Credit Unions Governmental Affairs Conference (GAC) was held in Washington, DC, March 2-6, 2025. While there, Finopotamus conducted several interviews of credit union technology luminaries, including Chuck Fagan, president and CEO of Velera. Fagan discussed the CUSO’s journey since the merger of PSCU and Co-op Solutions in 2024, its role in the evolving financial landscape, and its vision for supporting credit unions of all sizes. 

Chuck Fagan

Building an Industry Platform Through Scale and Collaboration

Reflecting on the period just past the one-year anniversary of the merger, Fagan described it as an “incredible journey” embraced by the industry, focused on achieving scale and “bringing the industry together on what you can call an industry platform.” He estimated the consolidation process is about halfway complete, having addressed the people side and now focusing on technology and products. In total, he expects it to take two to three years.

A unique aspect of the integration has been the direct involvement of credit unions. “Largely everything we’ve put together, we’ve done it with credit union input, which is a bit unique,” Fagan stated. He explained that advisory groups comprising both former PSCU and Co-op clients were consulted on product decisions. This collaborative approach ensures that technology integration results in a true upgrade for users. “We want to bring it together to be an upgrade... Where we invest in a better experience for the consumer or member, as well as the credit union staff.”

How Should a Credit Union CIO Think of Velera?

When Finopotamus asked how a CTO or CIO at a large credit union (e.g., $3 billion in assets) should perceive Velera, Fagan’s answered: “As a financial technology services company.” He positioned Velera as being “leading edge,” emphasizing speed and keeping credit unions relevant technologically. “That’s, I think, a responsibility we have. And again, we always do that with credit union input.”

He highlighted Velera’s role in facilitating fintech engagement, noting that fintechs prefer accessing Velera’s extensive network rather than establishing individual connections. Velera leverages input from technology-leading credit unions to vet potential fintech partners. Fagan wants that CIO to see Velera as a partner that helps integrate best-of-breed solutions into a “really tight unified experience for the member,” acknowledging the difficulty credit unions face in achieving this independently.

Fagan believes the perception has largely shifted, stating, “People see us as a technology company and one that is consistently investing,” pointing to Velera’s commitment to reinvesting roughly 6% of its revenue ($1.4 billion) annually into technology.

Embracing AI and Redefining Member Engagement

Fagan sees artificial intelligence (AI) as increasingly vital. Velera has utilized AI in fraud detection for years and anticipates its growing prominence in enhancing cardholder experiences, call center operations, and payment personalization. He illustrated AI’s potential with an example of an AI agent assisting with personalized gift purchasing, while acknowledging the need for human oversight. “We recognize how important data is to the AI engines being effective,” Fagan added, noting Velera’s significant data assets can strengthen AI capabilities.

He also offered a definition of member engagement, moving beyond traditional metrics. “Primary financial institution forever was defined as a checking account. Now primary financial institution to me is direct deposit and payments,” he offered. True engagement, in his view, involves securing these core relationships and then broadening the connection through other products and regular-use services like mobile banking. He cited Velera’s partnership enabling online credit card applications with approval and digital wallet provisioning in under 75 seconds as an example of deepening engagement instantly.

Future Outlook: Consolidation, Personalization, and Supporting All Sizes

Looking ahead, Fagan anticipates continued credit union consolidation due to the need for scale, while stressing the importance of keeping smaller credit unions relevant. He predicts a major trend will be the “continued expansion in and around the utilization of data to personalize the experience for the consumer,” drawing parallels to personalized online retail and media experiences.

Fagan affirmed Velera’s commitment to serving credit unions across the spectrum. For larger institutions, Velera provides application program interfaces (APIs) they can use to build custom experiences. For smaller credit unions lacking certain resources, “We have to take our own APIs and build out products, put the credit unions logo and color scheme on it. We’ve got to handle it both ways.” This approach ensures technology accessibility helps sustain the entire credit union system, he added.