Digital Federal Credit Union and First Tech Federal Credit Union have announced plans to merge, the credit unions said in a news release Monday (Sept. 30).

If the merger is approved by the National Credit Union Administration and First Tech members, the new credit union will be valued at $28.7 billion and have nearly 2 million customers in eight states, the companies said in the release.

“Combining the capabilities of the nation’s two leading technology-focused credit unions will enable us to drive innovation and push the boundaries to deliver better experiences by making significant investments in products and services to meet the needs of our growing membership.” “Greg Mitchell, president and CEO of First Tech Federal Credit Union, said in the press release.

“With a shared principle of people helping people, the new organization will also become the industry’s largest national charitable leader, donating more than $4 million annually to positively impact our local communities.”

“The transformative power of this coalition of equals will unlock tremendous potential to create value and opportunity for the people who matter most – our members, our employees and the communities we serve,” said Shruti Miyashiro, President and CEO from Digital Federal Credit Union in a statement.

Mitchell will remain with the credit union throughout the merger, while Miyashiro will become president and CEO of the new credit union, according to the release. The merger is expected to be completed next year.

The merger comes as more credit unions need to innovate to succeed.

According to PYMNTS Intelligence, 28% of credit unions see Big Tech companies as direct competitors. “How Top-Performing Credit Unions Innovate to Stay Competitive,” a collaboration between PYMNTS Intelligence and Velera, examines how high-performing credit unions innovate to meet customer expectations for products and services and stay ahead of the competition.

“Top performers see Big Tech companies and companies that offer alternative lending and banking services as competitors for members,” PYMNTS wrote. “The worst-performing companies, meanwhile, are most concerned about competition from local and regional financial institutions. These differences suggest that top performers may be better able to reduce churn and attract new members.”