One key takeaway from the following year-end updates is that many of the challenges that prompted coverage then remain relevant today: attracting new members, especially those among younger demographics; introducing competitive, innovative products; promoting member financial wellbeing; and fostering community engagement and development.

So, where are these credit unions now? And what insights do they have for the future?

Help For Financial Futures

THEN: In March 2023, Transcend Credit Union ($557.2M, Louisville, KY) launched a checking account for 13- to 17-year-olds with features that appeal to teens and parents.

In fewer than two years, the program brought in more than 530 new teen accounts. When speaking to CreditUnions.com in 2024, the credit union reported that teen accountholders held an average balance of approximately $864 and, together, generated roughly 3,000 debit card transactions per month. The account also helped the credit union lower its average member age from the 50s to 47.

NOW: According to Darran Stopher, chief retail officer, the credit union had 922 teen accounts as of December 2025. He says one of the biggest drivers of this growth was partnering with three youth organizations to provide financial education.

“We developed educational materials on budgeting, checking and savings accounts, and responsible credit use,” Stopher says. “For one group, we participated in a seven-week class. Upon graduation, each student received $100 from us and $100 from the program to open an account.”

NEXT: Transcend plans to continue these partnerships into 2026. The credit union also runs two popular deposit match campaigns, one during National Credit Union Youth Month in April and a back-to-school promotion in August.

“Our staff has found it incredibly rewarding to conduct these financial education classes and support community members,” Stopher says. “And parents who brought their teens expressed deep appreciation, noting the teens enjoyed the classes so much they chose to stay and participate alongside them.”

Read the original coverage, “Transcend’s Teen Account Banks On The Future,” on CreditUnions.com.

Flexibility Amid Affordability Challenges

THEN: Buy Now, Pay Later programs have come on strong the past few years, but a 2024 survey from PYMTS and Velera found only 1.5% of credit unions offered it.

USF Federal Credit Union ($1.3B, Template Terrace, FL) made member financial wellbeing a top priority when launching its own BNPL product in June 2024. Rather than offer BNPL at checkout, the credit union allows members to apply a plan post-purchase. Splitting the total cost into installments while still using funds already in their account gives members the flexibility to manage unexpected expenses or big-ticket items.

Richard Sellwood, chief operating officer at USF FCU, spoke to CreditUnions.com in September 2024. Despite the fact the credit union’s BNPL offering was only a few months old, members had opened 350 plans.

NOW: As of August 2025, 1,420 members had enrolled in the program and opened a total of 5,450 plans.

IMAGE: https://creditunions.com/wp-content/uploads/2024/09/RichardSellwood_USFFCU_300x300.png
CAPTION: Richard Sellwood, COO, USF FCU

“We’ve been able to engage with members who would have otherwise used outside services that might not put the same emphasis on their financial health that we do,” Sellwood says.

NEXT: The offering’s popularity comes amid ongoing concerns over affordability. According to Sellwood, the Florida cooperative has noticed an uptick in interest closer to the holiday season, which could indicate members are using plans to accommodate seasonal spending.

“Members have expressed how grateful they are to have the added financial flexibility in times of need,” the executive says. “We’ve made a few small tweaks along the way, but I foresee this continuing to be something we offer to our membership.”

Read the original coverage, “Buy Now, Pay Later: Fad Or The Future?” on CreditUnions.com.

Fueling Community One Bite At A Time

THEN: Redwood Credit Union ($9.7B, Santa Rosa, CA) goes beyond its role as a source of fulfilling financial options with its in-house eatery, The Grove Café.

The credit union originally opened the café in 2017 at its Santa Rosa headquarters to provide staff members access to healthy, convenient meal options. It expanded the concept to the community in 2023 under a new partnership with a local catering company. Then, in 2024, the California cooperative opened a second café at its Napa-area co-headquarters.

NOW: CEO Brett Martinez says both locations have since become a go-to lunch spot.

“It’s a space where members, employees, and neighbors can come together to enjoy high-quality, healthy meals at a reasonable price,” he says. “And when someone visits for breakfast or lunch, they also get a glimpse of what RCU is all about.”

Feedback has been overwhelmingly positive, reflected in both a 4.8-star Yelp rating and consistent year-over-year sales growth. The Santa Rosa cafe is up 7.5% year-over-year in sales; the Napa location has posted a whopping 25% increase compared to 2024.

In addition to sit-down meals, The Grove also offers convenient grab-and-go options, including those big enough to bring back to the whole family.

NEXT:  When it comes to meal planning, the credit union has even started somewhat of a holiday tradition for the most wonderful time of the year.

“Each Thanksgiving and Christmas, we prepare chef-crafted holiday meals at an affordable price for the public,” Martinez explains. “These meals have become a beloved way to make the holidays easier and more enjoyable.”

As for the CEO’s go-to menu item? He says one of his personal favorites is the chicken teriyaki bowl with extra chicken and brown rice. Yum!

Read the original coverage, “Redwood Credit Union Serves Up More Than Financial Services,” on CreditUnions.com.

The post 3 Popular Case Studies From 2024: Where Are They Now? appeared first on CreditUnions.com.

I recently came across a LinkedIn post from a company I first learned about years ago in a completely different context. Back then, I was looking for alumni to support my son’s rowing team, and someone directed me to a former teammate who’d launched a rooftop farming business in Washington, DC, in 2014.

The more I learned about Up Top Acres, the more I found it to be both unexpected and deeply practical, a mix of creativity and common sense. I’ve continued to follow its work, so when I spotted a social post of each farm taking stock of its season — what worked, what didn’t, and what mattered — it resonated. It made me think about the parallels for credit unions, especially at the branch level where purpose and community are entrenched in everyday operations.

As I sat with that post, a few themes rose to the surface, ideas that feel just as relevant for a credit union branch as they do a rooftop farm.

Up Top Acres applies elevated thinking to its end-of-season summary, providing not just numbers but also stories and areas of impact to highlight the value of its gardens.

Up Top Acres applies elevated thinking to its end-of-season summary, providing not just numbers but also stories and areas of impact to highlight the value of its gardens.

Up Top Acres applies elevated thinking to its end-of-season summary, providing not just numbers but also stories and areas of impact to highlight the value of its gardens.

1. Local ownership is the foundation of real impact.

Up Top Acres asked each of its rooftop farmers to speak in their own voice. The result was a hyper-local, authentic look at the results and impact of each individual location.

For credit union executives, the takeaway isn’t to push branches to do more; it’s to create intentional space for them to articulate what they see happening in their neighborhood. Branch teams are closest to the members and can surface insights that no centralized report will catch. Encouraging them to share those observations can help leadership understand the real conditions shaping member behavior.

2. Purpose-driven framing makes growth meaningful.

The farmers didn’t just report on yield, they explained why it mattered to the people they served.

Credit union branches already drive growth. They already build relationships. But when managers frame their work in purpose-driven terms — who they helped, what changed, why a particular effort mattered — it strengthens internal alignment. It gives teams a clearer sense of impact, and it gives leaders the language to talk about growth that means something beyond numbers.

3. Branch-level observation IS strategic intelligence.

Farmers notice early shifts long before the data confirms a trend. Branch managers do, too. They sense layoffs coming, hear budgeting worries rising, or see a spike in first-time homebuyer questions.

For senior leaders, the question becomes: How do we capture and elevate that quiet expertise?

Elaborate forms or extra processes aren’t necessary. In fact, tapping that expertise can be as simple as asking managers to share one emerging theme each month. Those real-time, ground-level signals can sharpen strategic decisions and reveal opportunities before they’re visible in the numbers.

4. Community engagement deserves to be surfaced.

One piece of the rooftop farm reflections that stood out was the community moments such as workshops, shared meals, collaborative projects, and more. These weren’t side notes; they were central to the story.

Branches already create moments like this: financial wellness conversations that go beyond the form, local partnerships that build trust, small events that draw in people for reasons other than transactions. Encouraging managers to name these moments brings their impact to light for the rest of the organization and serves as an inspiration for others to find meaning in their daily work. It reinforces the credit union’s role as a community anchor and strengthens the narrative executives can share with boards, regulators, and members.

5. Reflection is a growth engine, not a status update.

Up Top Acres didn’t ask each location to simply showcase success stories, it encouraged each site to highlight what they wanted to do differently next season. It was practical, honest, and forward-looking.

This is an area in which credit union executives can make a major difference. When leaders model a culture that values learning as much as outcomes, branch managers feel more comfortable sharing insights as well as results. Asking for a short reflection every quarter — “What worked? What didn’t? What surprised you?” — turns surface-level reporting into strategic storytelling. It seeds improvement without adding pressure.

Senior leaders often carry the responsibility of translating the credit union’s mission into operational priorities. But branches live that mission. Up Top Acres reminds that when leaders encourage front-line teams to articulate their local impact — in their own voice, with their own examples — it strengthens the whole credit union. It connects strategy to lived experience, numbers to meaning, and purpose to the valued employees who walk through the doors every day.

The post 5 Lessons About Ground-Level Intelligence From A Rooftop Farm appeared first on CreditUnions.com.

Matt Rarden, CEO at Kirtland Credit Union ($1.1B, Albuquerque, NM) logged roughly 15 years with IBM before making the jump to a credit union career. That background is shaping how the Southwestern cooperative approaches project management.

Rarden took the helm at Kirtland in 2020 and quickly started thinking about how to add more discipline and structure to the credit union’s project management work. With multiple initiatives underway simultaneously, it wasn’t uncommon for different projects to overlap in terms of the people and resources needed.

“We were stepping over one another,” he says. “Committing one another’s resources when we didn’t know they were committed. All that normal uncontrolled chaos.”

The solution started with bringing on a certified project management officer in 2021 — a role that now oversees two staff-level project managers. Beyond simply hiring dedicated staffers, Rarden also worked to put in place new processes and procedures around how to propose, review, and approve projects.

That structure includes a tiering system to rank projects by effort, resources, cost, criteria for approval, and more.

Tier 1 projects, for example, might require little effort or cost and involve only one line of business. Tier 5, on the other hand, might include mandatory regulatory requirements, involve multiple lines of business or stakeholders, or be a major revenue driver.

There’s a cultural evolution that has to happen. It sounds and feels like a lot of red tape, but we’ll collapse under our own weight if we don’t do this. We were already seeing that happen, and it was going to get worse for us as we grow.

Regardless, the credit union approves projects individually and maps them to its overall strategy to understand how to execute different projects simultaneously to reduce resource overlap.

“There’s a cultural evolution that has to happen,” Rarden says. “It sounds and feels like a lot of red tape, but we’ll collapse under our own weight if we don’t do this. We were already seeing that happen, and it was going to get worse for us as we grow.”

Oversight And Management

Although Kirtland does use some project management software, it designed the bulk of its structure internally. Project management became a key competency at IBM during Rarden’s time there, and he worked with the credit union’s leadership team to define each tier, determine how to prioritize projects, outline documentation requirements, and more.

The resource-management piece, however, is a bit harder. And according to Rarden, the credit union is still working on that.

“You’ve got to have some centralization from each of the lines of business and the key project resource folks,” the CEO says. “Understanding who is going to participate because of their expertise or position, understanding vacation schedules, and layering all this together is a big part of it, as well.”

To tackle resource management, a project steering committee meets monthly to examine project charters and determine which tiers are the right fit. According to Rarden, these senior leaders are the ultimate decision-makers, although approvals can go all the way up to the board if a project is big enough.

The committee members understand what’s going on and what resources are available. Internally, leaders evangelize for their projects, but if the credit union can’t work on multiple projects, then the steering committee has decide what to prioritize.

The easiest considerations are those that relate to revenue and business lines. The harder part is prioritization. If the committee agrees on the merits of a particular project but can’t make it happen during the current fiscal year, it might table the project for the future.

“It’s still something in our purview and we’ve agreed it needs to happen, we just can’t raise it to the level of priority now,” Rarden says.

Although the credit union might kill some projects, few are ever truly dead, he adds, and that’s generally only when outside factors make it impractical to pursue the idea further.

Lessons Learned

Along with improving communication, increasing efficiency, and better managing resources, the new project management system has also helped Kirtland operate more like a large company, all without impacting staff churn.

“This new way of doing business didn’t drive turnover, but it certainly drove frustration,” Rarden says. “We just had to work through frustration, understand why, and re-educate as to why we’re doing these things.”

With a few years of this structure under his belt, Rarden is quick to note that this type of structure isn’t necessarily an overnight success and that there will be bumps and frustrations along the way. In fact, he repeatedly cites one phrase when discussing this experience: cultural evolution.

“Everybody conceptually understands the need for project management and accepts that they don’t have total carte blanche over their part of the business because now they’re answering to a bigger body,” he says. “The cultural acceptance is not as easy as it might sound. It’s a different level of business acumen. Even though we’ve been doing it for four years, we’re still fine-tuning things.”

Even after several years, Rarden says if he could start the process over again, he’d spend more time building buy-in from the executive team.

“I’d spend more time making sure the executive team can evangelize it and enforce it and help everyone else on their teams understand it,” he says.

Still, Rarden is adamant that the process is worth the effort.

“Sometimes we have to slow down so we can speed up,” he says. “This allowed employees to stop having to do things twice, which ultimately slowed things down. We always want to be nimbler and move quickly.”

The post At Kirtland Credit Union, Project Management Isn’t Just A Task. It’s An Ethos. appeared first on CreditUnions.com.

When people feel seen, heard, and valued, fear drops and confidence rises. Hope for the future doesn’t change facts, but it does improve lives.

A few weeks ago, my colleague and Callahan analyst Tony Waltrich wrote about research from the Financial Health Network that indicates a “mild decrease in household financial vulnerability” as of spring 2025. This is good news, but it’s not the whole story.

FHN’s metric, like most others, assesses whether people objectively have the resources to meet their needs. This matters, but as credit unions leaders know from working with members, numbers don’t tell the whole story.

The rest of the story is how people feel about their financial situation. Gallup’s Financial Wellbeing (FWB) metric gauges people’s emotional relationship with their money. It doesn’t ignore facts — because worries about putting food on the table matter — it addresses how people feel about their facts and how that drives their attitude and behavior.

Gallup sorts people into three groups:  Thriving, Struggling, and Suffering. A recent Gallp study of Americans using a credit union or bank as their primary financial institution shows slightly more than 50% of them are thriving. This good news is true whether they are bank customers or credit union members. The uncomfortable truth, however, is that more than 20% of Americans are suffering, and that share is higher among credit union members, reflecting who the movement serves.

There is a bright spot though. Among a consortium of credit unions that Callahan leads with Gallup, the percentage of members who are suffering is approximately half that of credit union members at large. Why? Although we can’t prove causality, credit unions in the consortium have invested in developing their ability to engage members emotionally, provide reassurance, and build deeper, more resilient relationships.

These members are more likely to say their credit union “looks out for my financial wellbeing” and “is perfect for someone like me.” When people feel seen, heard, and valued, fear drops and confidence rises.

Hope for the future doesn’t change facts, but it does improve lives. And improving members’ lives is what makes credit unions matter in today’s financial landscape.

Learn About The Member Engagement & Financial Wellbeing Consortium. Is your credit union looking to change member perceptions and behavior through mission-aligned, data-informed actions? Are you ready to drive both impact and growth? Connect with Callahan & Associates to learn more about our transformational multi-year program that combines Gallup’s specialized research in human behavior and decision-making with Callahan’s decades of credit union expertise. Learn more today.

The post Financial Wellbeing Is About More Than Vulnerability appeared first on CreditUnions.com.

Generative AI tools for both member-facing applications and back-office processes are in the hands of employees right now, raising the stakes for governance, compliance, and smart use policies that don’t hinder innovation or competitiveness. That means today’s credit union leaders must balance moving quickly to unlock AI’s value with putting enough governance and guardrails in place to mitigate risk.

Credit unions across Illinois, Indiana, Texas, Washington, and beyond are putting AI to work while building real-world strategies to govern it as they go. Read on to learn about their AI use cases and dive into how they’re approaching governance issues.

Clear, Simple Guidelines

John Sahagian has been with BCU ($6.2B, Vernon Hills, IL) for 25 years. He became the suburban Chicago shop’s vice president and chief data officer in July 2018.

Sahagian says BCU is actively integrating gen AI within existing platforms for departments like HR, marketing, and software development. These tools, often provided through partnerships, enhance efficiency and align with AI roadmaps from trusted vendors.

BUC also has heavily invested in Salesforce and Microsoft platforms, both of which offer powerful generative AI tools within secure frameworks. Additionally, the credit union is providing AI training and resources to ensure employees can work creatively and effectively alongside machine intelligence.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

John Sahagian: Gen AI clearly holds massive potential, but it also brings entirely new risks. Instead of shutting everything down, we chose to embrace the opportunity and quickly rolled out a clear, simple AI acceptable use standard.

This guideline spelled out the do’s and don’ts in plain language and helped people understand the risks involved. Gen AI tools are accessible to everyone. That makes this both a strength and a challenge.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

JS: Our security team has been very proactive in scanning for unauthorized AI usage and even blocking unauthorized AI activity. We don’t do this to discourage AI use, but rather to ensure all tools used have been reviewed.

Furthermore, we make available to all employees permitted gen AI tools that operate inside our security framework and ensure prompts and responses are protected. So, anyone that wants to experiment and use AI absolutely can within the permitted tools.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

JS: As soon as ChatGPT hit the scene, it was apparent these new AI models and tools would be game changers. Our board gave us a dual mandate of, “there’s new risks here, you better be careful,” and “there’s a lot of value here, you better not lose pace!”

We’re fortunate our board members see where this is going and are as enthusiastic about AI progress as they are about AI defense. We provide them with quarterly updates on the progress of our AI roadmap.

Communication is absolutely essential. This thing we’re trying to govern is constantly changing and moving, so it can feel overwhelming to start building policies and standards. A limited few in your organization will likely read through your AI governance standard, but it’s important every employee knows you have one.

Empowered Employees To Leverage AI Responsibly

Tammie Fletcher has been vice president of HR at CEFCU ($8.1B, Peoria, IL) for the past three years. She has been with the central Illinois cooperative since 1989, starting her career in marketing.

Fletcher says CEFCU formed an internal team led by C-level executives to develop AI guidelines and a policy framework that focus on enabling responsible use of gen AI as well as identifying current use cases and paving the way for future capabilities.

The team identified more than 60 AI use cases at the outset, many already embedded in existing software. These range from basic machine learning applications to advanced gen AI functionalities across the credit union. Employees also can use external generative AI tools like Chat GPT and internal tools like Microsoft Copilot Chat.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

Tammie Fletcher: Our cross-functional team created a comprehensive AI policy that defines CEFCU’s approach to responsible AI adoption, explains why we use it, and sets guardrails for development and deployment.

We also launched a generative AI acceptable use policy that sets clear, practical rules for ethical and secure AI usage. Both policies are now official corporate policies, recently approved by the CEFCU board.

We’re finalizing a strategic roadmap under the guidance of our chief officers to ensure sustainable and impactful implementation.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

TF: We conducted a comprehensive survey across departments to identify existing AI applications. Detailed training will be required of all employees to ensure they understand restrictions for using AI and how to leverage tools to enable secure internal use of AI to help with tasks, including document writing, content generation, meeting minutes, data analysis and trends, and more.

There will also be technical restrictions placed on access to unapproved AI applications.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

TF: Our executive leadership has been instrumental in shaping and guiding our AI strategy, ensuring alignment with CEFCU’s mission. They work closely with the AI team they formed to provide ongoing feedback.

We will ensure credit unionwide alignment through ongoing training, transparent communication about AI initiatives, and strong leadership support. AI governance is essential to maintaining our members’ trust and ensuring our use of AI technology remains compliant with regulations, internal policies, and ethical standards while staying aligned with CEFCU’s mission and vision.

Our approach empowers employees to leverage AI responsibly to enhance their work while keeping human judgment and fact-checking in all decision-making processes.

Weekly Recaps For Today And Tomorrow

Doug True began his career with FORUM Credit Union ($2.3B, Fishers, IN) as a management trainee in 1988. He was named the Indianapolis-area credit union’s CEO in November 2011.

True says FORUM Credit Union is applying AI across multiple departments, including indirect lending, where AI helps review auto loan contracts for accuracy and compliance. In commercial services, the credit union uses AI to summarize property appraisals efficiently. In marketing, AI tools generate copy suggestions, whereas the fraud department uses AI to detect patterns relevant to Suspicious Activity Reporting (SAR). Additionally, robotic process automation is streamlining internal audit processes on large data sets.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

Doug True: Our executive team regularly meets to discuss AI, we’ve established a cross-functional team, and we will possibly make a new hire in 2026. This position would help us document governance of AI tools, document usage to avoid duplication of efforts, and ensure we’re leveraging existing tools before purchasing new tools.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

DT: Our technology team has controls in place for the use of AI tools. We’re actively surveying via technology and social engineering.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

DT: Governance is happening among our executive team as well as the cross-functional team across the credit union currently using AI tools. We regularly discuss developments in the AI space at our executive team and board meetings.

We publish a recap each week for our volunteers on what we’re working on at the credit union. This recap often includes how we’re using AI today and how we plan to use it in the future.

AI governance is vital to the protection of member data and intellectual property. We internally develop our internet banking and mobile app platform, so it’s critically important we protect this intellectual property contained in this code set.

Interviews have been edited and condensed.

The post How To Build AI Strategy In Real Time (Part 1) appeared first on CreditUnions.com.

Generative AI tools for both member-facing applications and back-office processes are in the hands of employees right now, raising the stakes for governance, compliance, and smart use policies that don’t hinder innovation or competitiveness. That means today’s credit union leaders must balance moving quickly to unlock AI’s value with putting enough governance and guardrails in place to mitigate risk.

Credit unions across Illinois, Indiana, Texas, Washington, and beyond are putting AI to work while building real-world strategies to govern it as they go. Read on to learn about their AI use cases and dive into how they’re approaching governance issues.

Regular AI Ideation Sessions

Kayvee Kondapalli has been CIO of Greater Texas Federal Credit Union ($957.3M, Austin, TX) for the past six years. He has nearly 25 years of credit union technology experience.

Kondapalli says Greater Texas has begun testing AI applications, including Microsoft and Google chatbots, although nothing is yet live. The credit union has partnered with a vendor to deploy an AI-based website chatbot and a contact center agent to assist members more effectively.

Staff members are already using tools like ChatGPT and Microsoft Copilot to streamline tasks such as document creation, data analysis, and decision-making. The veteran technologist says his shop has also launched ideation sessions with management to identify future use cases and ensure compliance with AI policies.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

Kayvee Kondapalli: We have a set of AI use guidelines. All employees have been trained and must participate in monthly AI courses to keep current with tech changes and our policies. Our senior management team discusses this topic frequently, weighing pros and cons every time a new tool is requested or talked about on the internet.

Greater Texas understands the benefits of AI, yet we’re careful in trusting and adoption. We’ve bolstered content filtering to block generative AI sites except those approved, and requests for access are reviewed by IT leadership, our cybersecurity officer, the CIO, and our technology steering committee as needed before giving the green light.

We regularly evaluate AI use cases in the credit union and financial services industry through reading online articles and participating in virtual and in-person generative AI-specific events. We also hold regular AI ideation sessions with middle management to explore new ways to possibly use the technology.

For example, we currently have a line of business tinkering with developing a chatbot of sorts to aid with a recurring task, and another department is testing an interactive report development tool.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

KK: We are committed to using AI safely and ethically. Employees are thoroughly trained in our AI policies and receive ongoing education about generative AI and which tools are approved for use within the credit union.

We use content filtering monitors to govern the use of approved generative AI tools. And to stay ahead of shadow use, we have regular open discussions within the executive team to explore new ways each department could use AI to improve efficiency.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

KK: As ChatGPT began picking up steam, we saw what was coming and wanted to start leading with education and governance in this area before it became commonplace in the workplace.

Our cybersecurity officer collaborated with the head of marketing and together they developed a set of AI use guidelines. These were presented to the technology steering committee, made up of mostly senior management, including our CEO. These guidelines are now an official part of our employee handbook.

Given the newness, exponential evolution, and rapid adoption of AI, we felt it was critical to be on the leading edge of governing how AI is used in our credit union. AI is almost like the internet is born again, the technology has such a profound impact.

AI As A Strategic Asset

John Orton joined University Federal Credit Union ($4.2B, Austin, TX) as vice president of enterprise risk management in February 2022. There, he oversees the fraud, collections, legal, facilities, and compliance areas.

Orton says UFCU is embedding AI into its digital strategy to become more data-driven and member-focused, using advanced analytics to personalize experiences and generate actionable insights. He says such tools help predict member needs and improve service delivery across all platforms.

UFCU is piloting AI-driven solutions that automate operations, support employee decision-making, and improve service efficiency. An ongoing focus is expanding AI use responsibly through innovation and strategic partnerships.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

John Orton: UFCU is among the early credit unions to formalize an AI policy, reflecting our proactive stance on responsible innovation and data stewardship. We regularly review our internal framework to ensure alignment with industry best practices and regulatory expectations. We designed that framework to guide ethical use of AI in ways that protect member trust and organizational integrity.

We’re advancing our data and AI strategy by building a modern, scalable data platform and fostering a culture of responsible innovation. We strive to empower employees with the tools and training needed to leverage data and AI for personalized member service and operational efficiency.

By automating routine tasks and streamlining processes, our goal is to enable teams to focus on delivering meaningful experiences. Our strategy is guided by continuous improvement, transparency, and a commitment to measurable impact for members and the organization.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

JO: UFCU prioritizes education and clear communication to guide ethical AI adoption. We have controls in place to protect member data and prevent unauthorized sharing, and we are continuously evaluating our governance framework to address emerging risks.

As our AI maturity grows, we plan to enhance our monitoring capabilities to ensure compliance and support responsible innovation across all departments. We’re committed to continuous improvement as the AI landscape evolves.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

JO: UFCU’s senior leadership and board have set a bold vision to use data and AI as strategic assets in our shift to a member-centric, digital-first organization. Their support, along with our cross-functional AI committee, ensures our approach aligns with our mission to deliver personalized, proactive member experiences and empower employees with actionable insights.

AI governance is key to responsible innovation and long-term success. We ensure every initiative aligns with our values, regulatory standards, and ethical commitments. We’re building a culture of data stewardship and continuous learning, equipping employees to use AI tools that automate routine tasks, boost efficiency, and deepen member engagement.

Through education, clear policies, and leadership support, we aim to help teams use data and AI to drive operational excellence and personalized service.

Just Another Technology

Shawn Dunn is vice president of data and analytics at Washington State Employees Credit Union ($5.1B, Olympia, WA). He joined WSECU in June 2024 and has 15 years of experience in credit union business processes and intelligence.

Dunn says AI adoption at WSECU is guided by member service and organizational benefit, with efforts centered on quickly accessing actionable insights. The credit union is enhancing existing platforms and preparing to grow through future vendor collaborations.

Education also is a major priority, with WSECU training staff members on AI tools, use cases, and best practices. According to Dunn, the credit union’s most significant rollout so far is Microsoft Copilot, which is integrating with Office tools to accelerate strategic decision-making through gen AI-driven insights.

What steps has your credit union taken to establish clear, responsible AI governance and policy frameworks, and how are you ensuring ethical and compliant adoption across departments?

Shawn Dunn: We began with policy, values, and buy-in from the board and senior leadership. In 2024, we formed an AI guidance group made up of leaders from data, IT, and compliance.

One of the group’s first efforts was publishing an organizational AI usage policy with clear guidelines on acceptable use. We also developed communication plans, training opportunities, and a strategy for managing AI technologies.

A key belief we’ve embraced is that AI is just another technology. We already have strong internal processes for evaluating and managing tech, so there’s no need to over-engineer new governance frameworks.

Our top priority now is team readiness. Without it, successful AI adoption will falter. We’ve built a clear communication plan that includes leadership vision, training, and success stories to normalize AI at WSECU and increase our team’s impact.

At the same time, we’re exploring partnerships where AI supports business objectives. Staying focused on tools that truly serve members and staff helps us avoid chasing the next shiny object that doesn’t move us forward.

How are you identifying and addressing “shadow AI” use within your organization, and what safeguards are in place to manage risks?

SD: Managing sensitive data is foundational in financial services. Our AI acceptable use policy is a great place to start for our team. We’ve also had discussions with leaders across the organization to ensure that we continue to follow established guidelines for onboarding and using new technologies.

I’ve talked to some peers who decided to outright block tools like Copilot altogether, and this is likely inadvertently increasing risk. Your teams know the value of these tools, and if you don’t provide them in a controlled manner, they’ll find ways to use them in a potentially more irresponsible fashion.

What role have your executives and the board played in shaping your AI governance strategy, and how do you communicate its importance across the enterprise?

SD: Like any successful initiative, you need buy-in and alignment at the top to gain employee confidence and adoption. WSECU’s senior leaders have been highly engaged since the onset of our AI efforts. In addition to representation on the AI guidance group, senior leadership is integral to communicating the vision of how AI elevates our efforts and improves the member experience.

They’re also sharing their own AI learning journeys, mirroring for the entire staff that we’re all learning together how to use these tools. Everything ties back to our organizational capabilities and those key strategic objectives established in the business plan.

AI governance is not just a compliance exercise; it’s a strategic requirement. I encourage my peers to find governance practices already implemented in their own organizations. There’s no need to create redundant frameworks to manage a new capability like AI. The focus should be on layering in additional considerations within established governance practices, such as how you map, measure, and monitor the impacts of AI-based tools.

Interviews have been edited and condensed.

The post How To Build AI Strategy In Real Time (Part 2) appeared first on CreditUnions.com.

2025 was a whirlwind year, but from a balance sheet perspective, it could’ve been a whole lot worse.

That’s the consensus from a variety of credit union leaders who braved a year of economic anxiety and come out intact on the other side. The task ahead? Maintain that momentum as they head into another year of uncertainty.

“I feel like there’s more certainty this year compared to [at the end of 2024],” says Seth Rudd, chief financial officer at Leaders Credit Union ($1.3B, Jackson, TN). “Saying that, the way we approach every year, regardless of what’s going on, is we’re going to reach our goals. We take economic indicators into account, but for the most part we know what we need to accomplish next year.”

Lending Landscape

Leaders isn’t expecting any major balance sheet changes in the year ahead. Rudd says he believes it’s unlikely mortgage business will pick up significantly, but he expects another strong year. He also expects auto lending rates to remain steady. Although he bases his prognostication on rate forecasts for the Fed, local forecasting also plays a major role.

“We mostly pay attention to our local market and what we’re seeing,” he says. “We’re not seeing bankruptcies increase significantly. It’s in line with where we’ve been the past 12 to 24 months.”

Rudd says Leaders intends to stay “laser-focused” on its current product mix, blending 65% auto lending with 25% real estate and consumer lending rounding out the remainder.

“We’re committed to our model,” the CFO says. “We don’t expect a change.”

EFCU Financial ($1.2B, Baton Rouge, LA) is taking a similarly optimistic approach, understanding that it could need to pivot quickly if things go south.

“We’re positioned to handle any economic uncertainty within reason,” says Tom Kuslikis, president and CEO. “If there’s something catastrophic, we’d feel pain because of that. Now that we’re going into a declining rate environment, we’ll be keeping a close eye on our expenses and managing appropriately.”

More than 40% of EFCU’s loan portfolio is auto loans, which Kuslikis says still has room to reprice. Margins have increased a lot and financials are strong, and with a lower rate environment expected in 2026, it’s likely the credit union will begin to see some margin compression, he says.

If rates go down as expected, notes William Hunt, director of industry analytics at Callahan & Associates, it could spark mortgage activity as purchase activity picks up from consumers looking for cheaper housing options.

At Leaders, third quarter credit card growth stood at 11.49%, about half of where it was three years ago, and Rudd says delinquencies and charge-offs are picking up in lower credit tiers.

That’s in line with the K-shaped recovery many Americans have been feeling but also reflects a resilient consumer, Hunt says.

“People are still spending,” the Callahan analyst adds. “Unemployment hasn’t shot up as a whole, so most industries aren’t doing mass layoffs, even if there are some struggles. This is definitely generalized — there are pockets that are feeling that.”

Combining Forces

Ent Credit Union ($9.7B. Colorado Springs, CO) has purposefully controlled growth the past few years to stay under $10 billion in assets and avoid the additional costs and regulatory issues that come with crossing that threshold. Its merger with Wings Financial Credit Union ($9.4B, Apple Valley, MN) will send it well past that line.

“We’ve not been able to flex from a growth and balance sheet-management perspective,” says Dan Leclerc, chief financial officer at Ent. “We’re going to be in good shape with these two credit unions coming together.”

That “flex” includes a more strategic approach to deposit acquisition while getting more aggressive around loan origination. Ent has historically focused on mortgages and consumer lending, whereas Wings has excelled at commercial deals — a market that grew by more than 35% across the industry between the third quarters of 2024 and 2025, according to analysis from Callahan & Associates. That combination, Leclerc says, sets the stage for a big year.

His forecast for 2026 includes 5% deposit growth and 7% loan growth. The former will come from marketing deposits more aggressively and entering new markets in both Colorado and Minnesota.

“We’re opening six to eight new branches next year, front-loaded to the beginning of the year,” Leclerc says. “That always comes with promotional marketing, and we always get a bit of a [deposit] bump from new branches.”

Headcounts, Deposit Management, And More

Across the industry, delinquency rates have followed seasonal swings but are largely improved form one year ago. Leaders’ Rudd says he expects charge-offs to rise slightly in 2026 but doesn’t expect significant changes.

Conversely, EFCU anticipates setting aside less for credit losses in 2026, thanks in part to a well-insulated market that continues to produce strong job growth — Baton Rouge is home to a robust oil and natural gas sector.

Kuslikis adds that the need for investments — particularly those related to technology — isn’t going to slow down, but one area where the credit union has a bit more control is staffing. EFCU’s total headcount has gone up 37% in the past five years to more than 140 employees. The credit union has no plans to reduce that, but it is slowing the velocity at which it’s adding team members, which Kuslikis says will help with managing rising salary and benefits costs.

The CEO also expects the deposit mix at EFCU to shift further away from high-rate long-term CDs to lower non-maturity shares. That should help keep margins stable in an uncertain economy as the credit union works to manage expenses and cost of funds.

Post-merger, Ent plans to continue its strategy of being “in the ballpark” for CD rates, since that has proven to be a stable funding source, Leclerc says. Although money market accounts might not grow, Leclerc expects to see that funding stick around, in part because Ent largely hasn’t repriced those accounts. And there’s always the possibility there could be some attrition from money markets to CDs.

Flexibility Is Key

So did Americans dodge an economic bullet in 2025, or will the other shoe drop?

“I’d be lying if I said I knew the answer,” says Callahan’s Hunt. But he does concede that, for now, there are no alarm bells going off.

“The optimistic perspective is that the resiliency of the past year has put credit unions in a pretty strong position from a capital and earnings standpoint to give themselves a rainy day fund,” the analyst adds. “There’s some cushion there to help if things get worse or to invest in growth if things turn around. They have flexibility for whichever way it goes.”

Leaders’ Rudd offered a different mantra: “Have your plan, stick to your plan, and if the world changes significantly, change your plan.”

Take A Closer Look. Learn what performance trends are pushing the industry forward and see where credit unions stand heading into 2026. Check out Callahan & Associates’ Trendwatch webinar on-demand for insights and expert analysis. Watch today.

The post Credit Union Finance Leaders Saddle Up For 2026 appeared first on CreditUnions.com.

Six new Nacha Rules take effect in 2026, covering several different aspects of ACH. Fraud Monitoring, International ACH Transactions (IATs), and Funds Availability Requirements are among the major ACH areas with new Rules for the new year. Your credit union, regardless of how big or small it is, needs to be aware of what’s happening and, crucially, stay compliant with the Rules.

Without a doubt it’s a lot to keep up with. Outdated Nacha Rules don’t help matters. If your copy of the Rules date back to last year—it’s out of date. And that could leave you out of compliance, a mistake you don’t want to make.

That’s the best reason to get the 2026 Nacha Operating Rules and Guidelines. The Rules are the foundation of the ACH Network, and since your credit union is an ACH Network participant, you need to ensure you’re in compliance with all Nacha Rules, new and old.

Quality payments are a hallmark of the ACH Network, and following the Rules helps you do right by your credit union’s members. You’ll also help yourself avoid the problems that come with being out of Rules compliance.

You can get a version of the 2026 Nacha Operating Rules and Guidelines in book or online  formats. Either way, you’ll have all of the Rules—both the new ones and the greatest hits—right at your fingertips.

It’s 2026. Like that Nehru jacket gathering dust in the closet, leave your old copy of the Nacha Rules behind and get with the times.

The post Changes Are Why You Need Today’s Nacha Rulebook appeared first on CreditUnions.com.

When hurricanes rip through the Gulf, they leave behind disrupted lives and disconnected communities. In those moments, access matters as much as empathy. When disaster strikes, The New Orleans Firemen’s Federal Credit Union  ($275.0M, Metarie, LA) is ready to roll with a mobile branch that brings back banking to the front line of recovery.

The Problem

A dozen hurricanes have impacted Louisiana or made landfall there since the year 2000, according to NOAA data. FEMA’s National Risk Index classifies New Orleans and its environs as being at high risk for hurricanes and with high levels of social vulnerability, although the area also rates highly for resilience.

“As we observe the 20th anniversary of Hurricane Katrina, it’s not if it’s going to happen again, it’s when,” says James Hunter, the cooperative’s chief advocacy and culture officer. “When disaster hits, things shut down. People don’t have access to energy, to gas, to cash —  anything you take for granted, we don’t have anymore.”

As an institution serving low-income, underbanked, and overlooked communities, the credit union wanted a way to ensure it was accessible in the worst of circumstances.

The Solution

With storms an ever-present threat, the credit union used a CDFI grant to shore up its capital position, in turn creating the flexibility needed to free up approximately $170,000 for a mobile branch, says President & CEO Judy Delucca.

The result is a full-scale branch on wheels. Just one foot shy of a commercial truck, it includes a computer and ATM access, cash on hand, a generator, and more. It’s a way to serve communities that don’t have access to banking services due to storm damage or other factors.

“We’re trying to fill a void,” Hunter says. “We’d love to be able to mobilize anytime to reach communities. Cash is king in these times. If you don’t have cash, you don’t have anything.”

What’s Next

New Orleans Firemen’s isn’t waiting for disaster to strike; it’s got plans to fill accessibility gaps in other ways.

“This is probably the most downtime we’ve had for disasters in a long time,” Hunter says. “We haven’t had a chance to show it in its full form, but we’re looking at different ways to use it.”

For example, the credit union’s community advisory team has pinpointed accessibility as a major issue in the region, particularly in pockets of Louisiana and Mississippi where many people lack access to reliable vehicles or live in banking deserts. Hunter says the credit union is working to schedule times to take the mobile unit into those spaces.

Also on the table are potential partnerships with local farmers to provide a fresh-food initiative for community members who live in food deserts. New Orleans Firemen’s also is working with Feed The Second Line, which has hubs ready for when disaster strikes. The credit union is discussing how to partner with that local community agency to provide access to financial services when consumers need them most.

Of course, it doesn’t have to be a top-tier disaster to bring out the branch. Even something like power outages from thunderstorms are reason enough to spring into action, Hunter says. The credit union knows it can be anywhere within a given radius quickly and is trying to be thoughtful about how and when it deploys the branch.

“These are all creative ways we can use that vehicle as an opportunity to serve our community,” Hunter says.

And when the next big storm hits, New Orleans Firemen’s is ready.

“If you’ve ever seen on TV what happens after a hurricane, it doesn’t do it any kind of justice,” Hunter says. “We’re talking about big trees blocking roads, powerlines on the ground, nobody can get gas — it’s a cash-only environment. The fact that we’re now ready for those things and able to reach out to certain areas changes how we can be more impactful.”

The post Hurricane Knocked The Power Out? New Orleans Firemen’s FCU Is Ready. appeared first on CreditUnions.com.

What do hand-crafted beers and credit unions have in common? More than most people might expect.

Both industries succeed by doing the same essential things: knowing their communities, listening closely to their customers, and crafting experiences that reflect local tastes and needs. For credit unions, the analogy isn’t about chasing the latest trend or squeezing out more bottom-line growth. It’s about pursuing strategic growth, the kind that comes from clarity of purpose, differentiated service, and products built for real people.

The connection between craft breweries and credit unions is stronger than ever. Microbreweries win by being intentional: they understand their niche, invest in quality, cultivate loyal followings, and create spaces where people feel they belong. Credit unions that embrace similar principles can strengthen member relationships, sharpen their value proposition, and grow in ways that align with both mission and market reality.

Although our external environment has evolved, the core principle of this comparison endures: sustainable success starts with knowing who you serve and designing your strategy accordingly. The lessons below offer timeless guidance for leaders committed to intentional, purpose-driven growth.

Lesson No. 1: Dude, You’re Obsessed

Successful microbreweries are founded by people obsessed with making a better product for the consumer, often provoking such comments above.

The craft beer craze began when Fritz Maytag bought a failing Anchor Brewing Company in San Francisco, CA, at the turn of the twentieth century. He, and now hundreds of others, had a vision of a better product than those produced for the masses and was determined enough to share that conviction with others. Recognizing that the big brewers catered to bottom-line profit by using fillers and the cheapest possible ingredients (corn, rice, plain white sugar) to brew beers, microbrewers differentiate their offering by using historical ingredients of barley and malt.

Additionally, these craft brewers focus on pull marketing, educating the consumer about the value they offer rather than pushing large volumes through distribution channels and then spending billions of dollars on marketing to convince the consumer to drink their product.

Lesson No. 2: Passion Is Contagious

Passion at the top isn’t enough, but it’s a great start. Successful microbreweries then spread that passion throughout their company, often through thoughtfully crafted mission and branding statements that drive corporate decisions ranging from what ingredients to use to what markets to target.

Sam Calagione, founder of Dogfish Head Craft Brewery in 1995, echoes marketing pioneers when he says his beer is a different kind of business card that tells story of what Dogfish Head is all about. If he didn’t have pride in the products he offers, it would affect his ability to sell it successfully. The company’s employees make all decisions under the motto “off-centered stuff for off-centered people,” a mission that both guides and limits what the company will do.

Anchor Brewing also focuses on authenticity. In fact, the company has declined large orders from new customers when it lacks the capacity to brew in-house rather than trust a contract brewer.

Lesson No. 3: Local Is The New Global

By definition, most microbreweries are regional operations that measure their success locally. Not all businesses are founded to be giants, but that does not mean they cannot turn out solid growth and profitability.

Microbreweries often forge strong community ties. Founded in 1987, Brooklyn Brewery helped spark a renaissance in the New York borrough by spurring economic development through active local engagement. In San Francisco at Anchor Brewing, Fritz Maytag keeps a low profile but focuses his community efforts on making the brewery a civic hub — a place to gather and meet. He opens the brewery for special events and fundraisers to help local non-profits. Dogfish Head was founded as a brewpub in the small town of Rehoboth Beach, DE, where it became a vital business in a small beach community.

Lesson No. 4: Collaboration Breeds Success

In craft beers as in life, deeper knowledge begets better decisions. The more breweries sharing knowledge locally, the faster the entire industry can expand. With microbrews accounting for roughly 13% of the U.S. beer market by volume, there’s ample room for every brewery to capture a share.

When craft competitors to Anchor Brewing entered the San Francisco scene in the early 1990s, Maytag helped them develop rival products. When Tom Potter, co-founder of Brooklyn Brewery, began his own entrepreneurial odyssey, he and his partner, Steve Hindy, visited breweries on the East Coast to learn more about the industry. The duo then included competing microbrews in their distribution strategy, even when their business advisors questioned the decision. Today, Brooklyn Brewery’s distribution arm is twice the size of the brewery itself. The founder of Dogfish Head has published a book sharing not only the secrets to his business success but also some of the recipes he used to get there.

Lesson No. 5: When Life Gives You Lemons, Brew Beer

Rather than allowing size to be an obstacle to growth, microbreweries have turned this so-called detriment into an advantage.

Dogfish Head had only 10-gallon brewing tanks when it first launched its brewpub. The founder brewed three batches every day for five days a week in the early years, leading to continual innovation and experimentation, such as using a secondhand vibrating tabletop football game to brew its most popular beer. Anchor’s Maytag opted to remain a private, and thus smaller, entity to retain complete control of his product and not fall subject to the Wall Street demands of wider profit margins.

Being smaller also means being closer to customers and nimbler in responding. Calagione at Dogfish has questioned at what point a company takes action to address repeated feedback. If bigger companies are slower to react, it follows that smaller ones can react more quickly, thus showing customers they care.

Lesson No. 6: Different Business Models Work

In researching the many different craft breweries for this article, one common lesson stood out: there is no common business model.

Each of the breweries made different business decisions in their quest for sustainability and growth. Go public or stay private? Brew exclusively in-house or contract out to those with excess capacity? Start a standalone brewery or build a brewpub with dual income streams? Control distribution or outsource through third-party distributors?

To make the best decision, these successful breweries considered what best matched their mission and vision for the organization. What they share in common is their dedication to the consumer experience, the desire to make good business decisions, a recognition of the necessity to differentiate and innovate to beat the competition, and the ability to embed themselves in the community around them.

Ultimately, this “six‑pack” of lessons from craft breweries demonstrates what can happen when commitment to value, operational agility, and community focus shapes growth strategy. A credit union that stays true to its mission — committed to members, nimble enough to respond quickly, and rooted in serving a community — can achieve sustainable growth without sacrificing what makes it special. After all, size might offer scale, but smallness often offers the closeness and care that build lasting loyalty.

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