The financial industry is currently facing a fundamental transformation driven by two primary forces: artificial intelligence (AI) and emerging payment technologies. For credit union leaders, the traditional “wait and see” strategy is no longer viable. These structural changes are not mere updates; they represent a total shift in how members move money and engage with their financial institutions.
Expert Perspectives On The Path Ahead
At a recent meeting of the State National Client Advisory Council (CAC), Dr. Lamont Black, professor of finance at DePaul University and a Filene Fellow, delivered a clear message: the next few years will be pivotal. While credit unions do not need to overhaul operations overnight, they must understand the trajectory of these technologies to avoid falling behind.
AI: Beyond Experimentation
AI adoption is moving from isolated teams to company-wide applications. This transition — driven by generative and agentic AI — marks a shift where AI becomes a capability touching nearly every role within a credit union.
What distinguishes this moment is accessibility. Tools such as ChatGPT and Copilot have enabled rapid adoption across all employee levels, bypassing the slower, IT-led rollouts of the past. For credit unions, the primary risk is not a lack of available tools, but a lack of organizational readiness as the pace of knowledge work accelerates. You can learn more about whether your institution is part of the AI revolution here.
Stablecoins And Regulatory Reality
Alongside AI, stablecoins — digital currencies designed to maintain a one-to-one value with the US dollar — are emerging as a major force in financial services. With the passage of the GENIUS Act, the conversation has moved from theoretical to regulatory. Industry experts anticipate that 2026–2027 will be the critical window for mainstream adoption and regulatory clarity.
Why This Matters For Credit Unions
Stablecoins introduce an alternative payment rail that operates outside of traditional card networks and ACH systems. This shift presents several strategic risks:
- Reduced Transaction Costs: Merchants may prefer stablecoins to avoid traditional fee structures.
- Behavioral Shifts: Consumers may transition toward digital wallets that bypass traditional credit union accounts.
- Income Pressure: If even a modest volume of transactions moves to these new rails, interchange-based non-interest income could be materially affected.
Major players like PayPal and large retailers are already integrating stablecoins into their checkout experiences. While these won’t replace traditional payments immediately, they create a strategic risk if ignored.
The Impact On Revenue And Member Relevance
The emergence of new payment rails is about cumulative impact. As stablecoins gain traction, transactions that previously ran through card networks may shift. This raises critical questions for credit unions regarding consumer protection, fraud prevention in decentralized environments, and maintaining “top of mind” status when the primary wallet is no longer a physical card.
Conclusion: Timing is Critical
Credit unions have traditionally been thoughtful adopters. However, the maturation of digital payments and the speed of AI adoption are compressing these timelines. Competitors are already experimenting, and member expectations are being shaped by non-financial brands. Future-proofing requires understanding these trends early enough to make intentional decisions before options narrow.
About the Partnership
State National is a proud sponsor of Filene’s Center of Excellence for The Credit Union of the Future. Filene is a credit union and consumer finance think tank that connects institutions with insights to change lives. As an Inner Circle member and research sponsor, State National supports this mission.
For more insights, Subscribe to the SNC Spotlight or connect with Dr. Lamont Black on LinkedIn.