AI, real-time payments, blockchain, and open banking are driving rapid change in the payments space. Some credit unions are rolling out FedNow Service and RTP, others are integrating wallets and Zelle, and nearly all are testing AI for fraud prevention and personalization. Meanwhile, challenges are mounting, including shifting regulations, rising fraud, and the pressure to quickly adapt people and processes.
Read on for insights and strategies from Lake Trust Credit Union, Rogue Credit Union, Royal Credit Union, Texas Trust Credit Union, and YOLO FCU. Read “Innovation At The Speed Of Payments (Part 1)” to hear from Atomic Credit Union, Coastal FCU, Dupaco Community Credit Union, GECU Credit Union, Golden 1 Credit Union, and Greater Texas FCU.
We’re balancing two speeds right now: the speed of money and the speed of change.
No One Wants To Wait
Razi Qadri was named chief operating and information officer at Lake Trust Credit Union ($2.7B, Brighton, MI) in July 2024. He held a similar role at another Michigan cooperative for the previous 10 years and now is leading data-driven decision making and other innovations at Lake Trust.
Which emerging technologies will drive the biggest changes in payments and at your credit union?
Razi Qadri: AI, blockchain, and open banking will each reshape how members experience payments in different ways.
Artificial intelligence is transforming how we protect and serve members. At Lake Trust, we’ve moved from reactive alerts to predictive fraud prevention and are expanding AI’s role in personalization — like real-time reminders or smart payment suggestions. We’re already using AI in our call center and moving into loan decisioning. To scale this, we’ve built an enterprise AI framework and are working with partners like Microsoft and IBM to embed AI across our operations.
Blockchain is redefining payment speed and transparency, especially for cross-border transactions that now happen in seconds. We’re closely watching and evaluating use cases for tokenization for applications like member shares or loyalty points and exploring stablecoins as low-volatility digital payment options.
Open banking is about creating seamless access. APIs let us connect services members already use — account aggregation, instant verification, fintech tools — turning the credit union into a hub for their financial lives. As we build our own apps, we’re also committed to sharing non-IP code with other credit union developers to drive collaborative innovation.
And of course, real-time payment networks like FedNow are reshaping expectations. Members want money to move instantly, like a text. No one wants to wait for money to clear.
How is your credit union upgrading payment systems for speed and convenience while managing risks? What are the biggest challenges you face in adapting to this new environment?
RQ: We’re balancing two speeds right now: the speed of money and the speed of change.
On the speed and convenience front, we’re deploying real-time payment capabilities through networks like FedNow and upgrading our digital banking platform for instant P2P and bill pay. We’ve implemented Zelle for consumer members and are extending it to businesses. Our goal is to make payments feel as effortless as sending a text — instant, intuitive, seamless. We’re redesigning workflows, eliminating steps, and streamlining processes so members can move money anytime, without friction.
At the same time, we’re doubling down on risk management. AI-driven fraud monitoring flags anomalies in real time, compliance rules are embedded automatically, and we’re using multi-factor and biometric authentication to keep security tight without slowing members down. Trust takes years to build but seconds to lose — so every feature goes through rigorous testing.
Internally, our biggest challenge is alignment. Payments modernization touches every department — from IT to compliance to the front line. It’s not just about new technology; it’s about retraining, rethinking, and shifting to a digital-first model. Externally, fintechs and big tech are raising expectations while regulations keep shifting. We must innovate without breaking trust — and move fast without tripping over compliance.
Bearish On Blockchain
James Richie has served as the vice president of payments services at Rogue Credit Union ($3.7B, Medford, OR) since October 2023. Richie began his career in cooperatives as a teller with a California credit union in 2014.
Which emerging technologies will drive the biggest changes in payments and at your credit union?
James Richie: The push toward faster payments seems most primed to drive transformation. While AI is already creating back-office efficiencies, I don’t foresee widespread AI use across all payment channels drastically shifting the landscape in the near term. Payments remain member-driven — how, when, and where they want to move money — and our role is to support that.
Despite ongoing hopes for the end of checks, members are steadily adopting faster payment channels. Instant payment rails, particularly FedNow and RTP, offer merchants and governments a way to reduce processing costs via pay-by-bank, biometric methods, and authentication tools.
Widespread adoption could shift volume from other channels and spark innovation in security and operations. While I’m bearish on cryptocurrency and blockchain as mainstream payment tools, I do see blockchain’s core tech gradually integrating into instant payment infrastructure.
How is your credit union upgrading payment systems for speed and convenience while managing risks? What are the biggest challenges you face in adapting to this new environment?
JR: The biggest challenge in payments remains balancing security and convenience. Members expect safety but won’t adopt systems that feel cumbersome. To drive loyalty and support key moments, we’ve added online dispute submission, card controls, and digital card issuance. We’re nearing the launch of Zelle, with plans for a credit card upgrade and a unified money movement hub integrating FedNow and RTP.
The hardest part is building security that verifies members accurately without adding friction. Across channels, we’re using AI for transaction decisioning — especially in card processing — layering algorithms to detect and stop fraud at authorization. Enhanced risk rules and targeted testing have reduced losses, built trust, and minimized cardholder impact.
We’re applying similar AI methods to check, ACH, and wire systems to flag suspicious activity early. Although cost-effective, scaling these programs without growing headcount is a challenge. We’ve succeeded by combining automation with vendor best practices to enable smarter fraud review with fewer manual touchpoints.
Fit For Purpose
Jeni Brantner began her career with Royal Credit Union ($5.5B, Eau Claire, WI) as a teller in March 2000. She became the Badger State cooperative’s vice president of payments in May 2022.
Which emerging technologies will drive the biggest changes in payments and at your credit union?
Jeni Brantner: AI and instant payments are poised to drive major shifts in payments. AI can enhance efficiency and fraud prevention, but it must be implemented carefully to avoid introducing new vulnerabilities. Instant payment systems like FedNow have strong potential — especially request-for-payment features that could help business members with receivables — but adoption is key.
Stablecoins are gaining attention, especially for cross-border payments, though institutional support will determine their impact. Open banking also holds promise for personalized services through shared data, but widespread use depends on overcoming challenges around tech, regulation, and security.
At Royal, we approach every new technology with a fit-for-purpose lens, prioritizing solutions that serve real member needs over chasing trends.
How is your credit union upgrading payment systems for speed and convenience while managing risks? What are the biggest challenges you face in adapting to this new environment?
JB: This is a great question and one that all institutions should be considering. Royal has invested in open architecture platforms that allow for integration via APIs and SDKs. This lets us customize member experiences, scale systems, and work with forward-looking partners. We evaluate vendors based on both current tech and future roadmaps, aiming for true partnerships, not just contracts.
Internally, we use relationship-based risk scoring to determine service eligibility, limits, and payment speed. Automation and modeling allow us to place immediate holds on accounts showing suspicious behavior — essential as faster settlement times reduce fraud recourse. Security remains a top priority, especially as payment types and channels expand.
Limited resources make it critical to choose the right technologies at the right time to meet evolving member expectations. We believe our ability to act with speed and discipline is what sets us apart in an environment driven by constant change.
Don’t Stop Here. Focused strategies and partnerships anchor innovation without the hype at this Wisconsin cooperative. Read more in “Royal Credit Union Bets On Smart Payments Innovation.”
Greater Interoperability Without Full Tech Overhauls
Robert Underwood was promoted to executive vice president and chief information officer at Texas Trust Credit Union ($2.0B, Arlington, TX) in June 2025. He’s been with Texas Trust for 17 years, including senior vice president posts since 2015, and has helped drive the suburban Dallas cooperative’s digital transformation.
Which emerging technologies will drive the biggest changes in payments and at your credit union?
Robert Underwood: The biggest changes in payments will come from the convergence of technologies improving both speed and user interface. AI will enhance risk management by analyzing transactions and behavior in real time, enabling faster, safer payments.
Meanwhile, open banking and the rise of APIs are breaking down barriers between systems. For credit unions, this means greater interoperability without needing full tech overhauls. Members get more convenient, modern tools, and institutions gain flexibility to compete more effectively.
How is your credit union upgrading payment systems for speed and convenience while managing risks? What are the biggest challenges you face in adapting to this new environment?
RU: Texas Trust is working to match the speed and convenience members expect from larger institutions. We’re investing in mobile-first omnichannel platforms to deliver the personalized experiences that today’s members demand. We’re also implementing Zelle and other instant payment tools while upgrading fraud detection and analytics to ensure secure transactions.
Our biggest challenge is sequencing — figuring out the right order to roll out tools and upgrades within our resource limits. Laying the right foundation is key to meeting rapidly evolving member expectations.
Ready For Stablecoins
Jenee Rawlings has been with Yolo Federal Credit Union ($405.2M, Woodland, CA) for 36 years. She was named president and CEO in 2013 after holding various executive roles over operations, lending, and human resources at the Sacramento-area credit union.
Which emerging technologies will drive the biggest changes in payments and at your credit union?
Jenee Rawlings: The biggest changes will come from real-time payments and AI working together. The United States is catching up, and solutions like FedNow are finally gaining traction and set to drive major change soon. AI boosts speed, safety, and efficiency by improving fraud detection and using chatbots to handle routine transactions.
We’re also watching stablecoins closely, especially with the GENIUS Act providing a regulatory path. They could significantly disrupt the banking space over time, and we need to be ready.
How is your credit union upgrading payment systems for speed and convenience while managing risks? What are the biggest challenges you face in adapting to this new environment?
JR: In 2023-2024, we made a strategic tech investment: a new core system, digital banking platform, and new vendor partners all focused on enhancing member experience while managing risk. We’re preparing to join FedNow and launch Zelle. Our upgraded systems improve fraud detection, support Apple Pay and Google Wallet and offer better card controls.
Internally, replacing legacy systems was the biggest challenge but necessary to stay competitive. Externally, fintech competition and a shifting payments landscape push us to stay flexible and innovative, especially with emerging tools like blockchain and digital currency.
Don’t Stop Here. Read “Innovation At The Speed Of Payments (Part 1)” to hear from Atomic Credit Union, Coastal FCU, Dupaco Community Credit Union, GECU Credit Union, Golden 1 Credit Union, and Greater Texas FCU.
Interviews have been edited and condensed.
