5 minutes
As a parent of teenagers, conversations about FOMO—the fear of missing out—are a regular occurrence in my house. It’s a very real feeling for young people, and as a parent, I try to help them understand why it can sometimes lead down unhelpful or even risky paths.
You might assume that life experience would diminish the influence of FOMO. After all, maturity brings with it a deeper sense of gratitude for what we have and a clearer view of where we’re headed, right?
The hard truth is, FOMO doesn’t simply disappear with age or professional experience. The human mind is wired to respond to emotion first and logic second, which means FOMO continues to influence decisions long after adolescence.
How FOMO Shows Up in Credit Union Leadership
I have regular conversations where FOMO surfaces in a professional context. Mergers are the most visible example, but they’re far from the only one. I see the same emotional pull showing up in investment strategy, technology decisions, indirect lending, membership growth targets, and of course AI adoption.
None of these are inherently the wrong move. In fact, they are all critical priorities for many credit unions today. Mergers can be strategically sound. Indirect lending can diversify a loan portfolio. AI can genuinely improve efficiency and the member experience. The issue arises when what everyone else is doing drives the decision more than the needs of the credit union and, more importantly, its stakeholders.
Anyone who reads trade publications or attends industry events knows how loud the noise has become. With that constant pressure, it’s not hard to imagine leadership teams and boards starting to ask themselves:
- Why aren’t we doing this too?
- If we don’t have a (ENTER STRATEGY HERE) yet, are we already behind?
- Should we be growing (X PORTFOLIO) because our peers are?
- Should we adopt that same platform XYZ uses?
Viewed through the lens of FOMO, these questions are understandable.
They can also be dangerous.
The Hidden Cost Of FOMO-Driven Decisions
Every one of these moves—a merger, an investment in a core or technology platform, an AI rollout—is a significant undertaking, even for large or well-resourced credit unions. Once initiated, they consume time, capital, and leadership bandwidth, often for 12 to 18 months or more. That’s not necessarily a bad thing when the decision is aligned with strategic goals. But when the primary motivation is fear of missing out, the cost can be substantial.
Key initiatives stall.
Innovation pipelines slow. Leadership bandwidth disappears into managing something that was never fully thought through.
And in cases like rapid membership growth pursued for its own sake, credit unions can quietly take on risk that doesn’t show up on the balance sheet until much later.
All of this potentially leaves the credit union drifting away from its strategic path. This is why FOMO is such a risky driver of decision-making. It shifts attention away from mission, strengths, and member needs and toward comparisons, perceptions, and speculative fears.
Ask Better Questions Before FOMO Drives the Decision
Strategic planning season is in full swing. Instead of reacting to industry noise or assuming that “everyone else is doing it,” credit unions are better served by grounding every major decision—whether that’s a merger, a technology investment, a lending strategy, or AI adoption—in questions that reinforce clarity and purpose:
What makes us proud of who we are—and how can we amplify that?
Every credit union has a story, culture, and strengths that make it valuable. Understanding what these are and building upon them often is far more impactful than adopting a new strategy simply because others are.
What problem are we actually solving?
Whether it’s a core system replacement, an AI tool, or a new lending channel, the decision should start with a specific member or operational need and not a fear of falling behind competitors.
If we choose this path, what will we choose not to do?
Every strategic decision has an opportunity cost. Naming those trade-offs early—including the other initiatives it delays, the risk it introduces, and the capital it ties up—fosters discipline and prevents the organization from wandering into decisions driven more by emotion than strategy.
Would we still make this decision if no one else were making it?
This question cuts through the noise fastest. If the honest answer is no, that’s worth sitting with before moving forward.
Lead With Intent, Not Fear
Here's the thing about FOMO. It never goes away. My teenagers feel it scrolling through their phones. Credit union leaders feel it reading the latest headline or sitting in a board meeting where someone brings up AI for the third time this quarter. You can't just turn it off. What you can do is identify it, name it for what it is, and then refuse to let it steer the ship.
Bring an outside voice into the room. Leadership teams and boards see FOMO more clearly when someone outside the organization asks the hard questions. Callahan & Associates has guided executive teams through difficult discussions for decades, helping credit unions navigate shifting industry trends and make strategic decisions with confidence. Learn more about how Callahan's consulting services can help your credit union.
Jon Jeffreys is the President & CEO of Callahan & Associates, published author of Callahan’s Strategic Growth Framework, and serves on the Board of Directors for Callahan & Associates and myCUmortgage. With over 15 years of experience in the credit union industry, Jon excels in fostering collaboration and driving innovation. He holds a BA in political science from Denison University and an MBA from the Kogod School of Management at American University, as well as FINRA licenses series 6 and 63.
