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.

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.

Here To Support, Not Just Serve

Our approach is built on the understanding that your success is our success. We know your daily focus is on managing risk, ensuring compliance, and serving your members. That’s why our portfolio protection solutions are designed to lift that burden. We provide the robust tools and transparent reporting you need to stay ahead of regulatory scrutiny, all while offering the personal support that makes a real difference.

We’ve heard it directly from your peers. They don’t just see us as a provider; they see us as an extension of their team. They appreciate that we’re always willing to listen, to adapt, and to work collaboratively to achieve their goals. It’s a sentiment that speaks to the core of who we are.

Our Trust Is Earned, Not Given

We’ve spent decades building trust within the credit union community. We know it’s not something we can demand — we have to earn it through consistent performance and unwavering reliability. This high level of trust that credit union leaders place in us underscores the stability and assurance our partnerships provide. It means you can focus on your members, knowing your institution’s vital interests are protected.

To gain further insight into how these established partnerships benefit credit unions like yours, we invite you to hear directly from your peers.

Watch our video to explore the real-world impact of a trusted partnership on portfolio protection and credit union success.

The post Proven Relationships. Trusted Protection. appeared first on CreditUnions.com.

This article explores how credit unions can simplify compliance, reduce risk, and improve member experiences by rethinking their approach to loan servicing.

Why Compliance Is So Challenging For Credit Unions

Unlike larger financial institutions, credit unions often operate with lean teams and limited resources. That makes it harder to keep up with the ever-changing regulatory environment. From application management to collections, each phase of the loan lifecycle carries its own set of compliance requirements — many of which vary by state and loan type.

Key compliance touchpoints include:
• Loan Application Management — Ensuring adherence to non-discrimination laws and identity verification protocols.
• Origination And Pricing — Navigating interest rate caps, usury laws, and fee disclosures.
• Data Collection And Analytics — Safeguarding sensitive borrower data and complying with data usage laws.
• Payment Processing — Maintaining secure, auditable systems that meet fraud prevention and AML standards.
• Borrower Communications — Training staff to avoid misleading information and ensuring proper consent.
• Collections — Following strict guidelines around timing, communication frequency, and third-party agency practices.

The Case For A Smarter, Outsourced Approach

Managing all these requirements internally can be overwhelming. That’s why many credit unions are turning to outsourced loan servicing platforms that are built with compliance in mind.
These platforms offer:
• Automated updates to reflect the latest regulations.
• Built-in audit trails and reporting tools.
• Expert-led support teams who stay ahead of regulatory changes.
• Scalable infrastructure that grows with your portfolio.
By outsourcing, credit unions can focus on member service and strategic growth — while leaving the compliance heavy lifting to specialists.
“We automated our servicing with defi SOLUTIONS and were able to decrease 276 manual tasks in a single queue down to only 5 tasks,” one captive lender reported. “That’s a workload reduction of 98%!”

How defi SOLUTIONS Helps Credit Unions Stay Ahead

At defi SOLUTIONS, we’ve designed our platform to meet the unique needs of credit unions. Our cloud-based solution automates loan servicing tasks while maintaining full visibility and control. With configurable workflows, secure data handling, and compliance-first architecture, we help credit unions deliver exceptional service without compromising on oversight.

Whether you’re managing a small portfolio or scaling rapidly, our platform adapts to your needs — so you can stay compliant, confident, and member-focused.

Ready To Simplify Compliance?

Let’s talk about how we can help your credit union streamline loan servicing!

The post Navigating Loan Servicing Compliance: A Smarter Path For Credit Unions appeared first on CreditUnions.com.

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.

The post Innovation At The Speed Of Payments (Part 2) appeared first on CreditUnions.com.

Read on for insights and strategies from Atomic Credit Union, Coastal FCU, Dupaco Community Credit Union, GECU Credit Union, Golden 1 Credit Union, and Greater Texas FCU. Read “Innovation At The Speed Of Payments (Part 2)” to hear from Lake Trust Credit Union, Rogue Credit Union, Royal Credit Union, Texas Trust Credit Union, and YOLO FCU.

Trust Through Education

Taylor Stapleton has been vice president of funds management at Atomic Credit Union ($749.5M, Piketon, OH) since February 2024. She joined the rural Ohio cooperative in 2018 and moved into funds management in March 2021.

Which emerging technologies will drive the biggest changes in payments and at your credit union?

Taylor Stapleton: AI and blockchain will drive major innovation in payment systems and how credit unions serve members. Blockchain’s ability to detect fraud and streamline operations helps us offer faster, more secure payments.

At Atomic Credit Union, we grow by embracing technologies that fit our members’ needs. Maintaining personal relationships while adopting tools that enhance convenience and protection allows us to modernize and expand. Blockchain boosts transaction speed, access, and security across our membership.

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?

TS: We’re enhancing our core and digital platforms using new technologies while staying true to our values. Members benefit from faster payments and improved fraud protection, with compliance intact.

Internally, the biggest challenge is balancing risk with convenience. AI and blockchain require strong data protection amid cyber threats. Externally, we face pressure to compete and keep pace with trends. We build trust by educating members on products and warning them about security threats to help reduce payment system risks.

Digital Debit And More

Daniel Rathfelder has been with Coastal Federal Credit Union ($5.7B, Raleigh, NC) for four years, first as vice president as card services and for the past two years as vice president of loan operations. In that role, he oversees mortgage and loan servicing and card services for the Research Triangle credit union.

Which emerging technologies will drive the biggest changes in payments and at your credit union?

Daniel Rathfelder: At Coastal, AI is already reshaping member services — from credit decisioning and chatbots to analytics that anticipate needs. We’re now exploring voice bots and automation to further enhance the member experience.

We also see stablecoin as a key emerging force, especially with the GENIUS Act paving the way for broader adoption. Stablecoins promise fast, low-cost, borderless payments, and we’re actively evaluating their future role.

Our members have always embraced innovation — we led with ITMs in 2006 — and they expect forward-thinking solutions. We’re committed to delivering exactly that.

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?

DR: Coastal continues to modernize payments for speed, convenience, and security. We offer digital wallets, contactless cards, and as of January 2025, full digital issuance for credit and debit cards.

We’re rolling out Zelle soon, and we’ve enabled FedNow and RTP receive capabilities to support real-time payments. Stablecoin integration is also part of our long-term vision as digital currencies gain ground.

Fast-changing regulations pose the biggest challenge. Internally, it’s ensuring innovation aligns with security, compliance, and operational readiness.

Bullish On Agentic AI

Dupaco Community Credit Union ($3.5B, Dubuque, IA) named Todd Link its first chief member services officer this past February. He joined Dupaco in 2014 and has served as chief risk officer and senior vice president of risk management and remote delivery before assuming his current role at the Iowa credit union.

Which emerging technologies will drive the biggest changes in payments and at your credit union?

Todd Link: I’m quite bullish — in fact bullish would be an understatement — on the future of agentic AI using operator connections rather than traditional APIs. Large financials are investing heavily here. That’s not just for common tasks, like underwriting or fraud detection, but to automate entire back-office operations, like preparing and filing paperwork, working alerts, reviewing exception reports, and flagging real risks for human review.

With rising costs and margin compression, operational efficiency through agentic AI will be essential. Credit unions that embrace it can redirect staff toward front-line member engagement. Those that don’t risk falling too far behind to compete.

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?

TL: Dupaco has and continues to invest heavily in both payment technology and digital banking offerings and, of course, fraud prevention, detection, and intervention tools. To me the three elements run parallel to one another. A successful payments program needs strong digital banking tools as well as the latest and most advanced fraud tools to protect against loss.

When we do all three correctly, most members not only willingly engage in innovative technology but actively seek it out. RTP [real-time payments] is a bit unique due to the risks associated with sending but over time I believe RTP will also be a valuable and heavily used tool in money movement.

Don’t Stop Here. Todd Link is redefining member service at Dupaco Community Credit Union, blending risk expertise with operational leadership to deliver secure, seamless, member-focused experiences. Read more in “What’s In A Name: Chief Member Services Officer.”

It’s Only Just Begun

Amanda Willians is a 28-year employee of GECU Credit Union ($4.4B, El Paso, TX). She’s been senior vice president for payment and remote services since 2022 and has 10 years of payments industry experience with the west Texas shop.

Which emerging technologies will drive the biggest changes in payments and at your credit union?

Amanda Williams: AI and open banking are redefining payments and we’re only beginning to realize their potential. AI is evolving from a support tool to a strategic driver, enabling real-time fraud detection, predictive risk modeling, and hyper-personalized member engagement. By harnessing its ability to learn and adapt, we can move from reactive responses to anticipatory service — identifying risks before they appear and delivering tailored solutions when they’re needed most.

Open banking accelerates the shift to a fully connected ecosystem. Secure, consent-driven data sharing between institutions and trusted third parties empowers members to manage finances seamlessly across platforms. This cross-functionality drives new business models, faster innovation, and deeply integrated payment experiences beyond traditional banking.

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?

AW: GECU is working with third-party vendors to provide our members with the next generation of payments where speed, security, and convenience work in harmony. We deliver an experience where payments are more than transactions — they’re trusted, intelligent interactions.

We’re expanding real-time capabilities through modern P2P solutions and mobile-first digital banking experiences. We’re advancing our API ecosystem, embedding real-time analytics, and deploying adaptive fraud-prevention tools that strengthen security effortlessly.

Internally, our biggest challenge is innovating at the speed of technology while aligning resources, skills, and culture. Externally, members expect instant, seamless payment experiences.

We’re constantly adapting to evolving expectations and regulatory demands. Our approach is intentional evolution — innovating responsibly, anticipating market shifts, and designing a payments environment ready for today’s demands and tomorrow’s opportunities.

Emerging Technology Aligned With Mission

Blair Braud has served as executive vice president and head of operations at Golden 1 Credit Union ($20.3B, Sacramento, CA) since April 2024. She came to the big cooperative with a quarter century of corporate banking experience, including senior positions in risk and operations.

Which emerging technologies will drive the biggest changes in payments and at your credit union?

Blair Braud: Emerging technologies like instant fund transfers between parties and open banking will shape the future through greater convenience, speed, and security, but we must align them with our mission to empower members and communities across California.

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?

BB: We’re upgrading our payment systems to deliver greater speed and convenience while keeping security, compliance, and trust central to our strategy. Key initiatives include:

• AI And Machine Learning — Real-time analysis detects fraud faster than humans while insights improve member equity and experience.
• Cloud Computing — Scales efficiently to handle growing transaction volumes securely.
• Tokenization — Randomized tokens replace sensitive data, cutting fraud risk and enabling secure, fast payments.
• Multi-Factor Authentication (MFA) — Stronger security with a seamless member experience.
• Education And Device Security — Training members and staff builds defenses against evolving threats.
• Accessibility Enhancements — Expert partnerships keep digital and in-branch tools inclusive and secure.

One of our biggest external challenges is keeping up with rapidly evolving payment threats. Internally, adapting systems and staff capabilities to new tech — without disrupting the member experience —remains a constant balancing act.

The Future Belongs To Blended Systems

Jason Endsley joined Greater Texas Federal Credit Union ($952.6M, Austin, TX) in early 2024. He has managed card payment programs for more than 20 years in the credit union and consumer banking spheres.

Which emerging technologies will drive the biggest changes in payments and at your credit union?

Jason Endsley: In the coming years, artificial intelligence and open banking will drive the biggest changes in payments. AI already makes fraud detection faster and more accurate while personalizing experiences. It anticipates needs, speeds approvals, and makes payments seamless, turning transactions into connections.

Open banking accelerates this shift by linking credit unions, fintechs, and networks. Members gain instant, low-cost transfers, richer tools, and integrated services all within the credit union ecosystem.

Blockchain’s near-term value is behind the scenes, improving settlements, cross-border payments, and identity verification. The future belongs to systems blending intelligence, openness, and trust, giving members more choice and security while keeping credit unions central to their financial lives.

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?

JE: Greater Texas Credit Union is in the middle of a multi-year effort to transform payments for speed, convenience, and flexibility while keeping security and trust central. A key initiative is modernizing our card processing platform to deliver faster authorizations, deeper data insights, and more resilient operations. We’ve also secured long-term partnerships with networks like Visa to provide stability and accelerate innovation.

We’re also preparing to leverage new payment rails like FedNow and the RTP network. These capabilities will let members send and receive funds instantly — around the clock — for deposits, transfers, and more, all within a secure credit union environment.

The challenge internally is aligning people, systems, and processes to support this change without disruption. Externally, we face evolving regulations, rising fraud sophistication, and member expectations set by tech-first competitors.

Don’t Stop Here. Read “Innovation At The Speed Of Payments (Part 2)” to hear from Lake Trust Credit Union, Rogue Credit Union, Royal Credit Union, Texas Trust Credit Union, and YOLO FCU.

Interviews have been edited and condensed.

The post Innovation At The Speed Of Payments (Part 1) appeared first on CreditUnions.com.

Ensuring CPI Compliance

Compliance should be fundamental to any portfolio protection solution. Credit unions face increasing challenges, including economic uncertainty and regulatory scrutiny, making a comprehensive and proactive approach essential. At State National, compliance isn’t just a priority, it’s built into everything we do.

Key Elements Of Compliance

• Regulatory Expertise — Staying current with federal and state mandates is crucial. At State National, our skilled team actively monitors federal and state-level mandates to ensure your program remains compliant.
• Proactive Adherence — Managing regulatory filings and staying ahead of changes from bodies like the NCUA and CFPB is vital. State National’s dedicated Compliance Department manages more than 50,000 regulatory filings annually, helping you stay ahead of federal and state mandates, including guidance on NCUA, CFPB, and other key industry regulations.
• Comprehensive Audits — Meticulous audits and legal reviews ensure your credit union is prepared not just for current regulations but also for future challenges.
• Proven Reliability — With 30+ consecutive years of an AM Best ‘A’ Rating, achieved the very first year we were eligible, State National has demonstrated exceptional financial strength and dependability. This provides confidence in a portfolio protection program.
• Future-Forward Research — We actively collaborate with industry organizations and regulatory bodies to anticipate and adapt to upcoming compliance changes, ensuring your credit union is always ahead of the curve.

Comprehensive Risk Management

Effective risk management is essential for protecting credit unions and ensuring compliance. State National’s industry-best risk management services go above and beyond to protect your credit union, ensuring compliance every step of the way. This includes rigorous measures like audit trails and prevention-focused processes to safeguard against potential issues.

• Accurate, prevention-first approach.
• Focused portfolio protection expertise with decades of specialized experience.
• Complete audit trails for ongoing compliance.
• Reduced member friction with proactive solutions.

When you work with a dedicated provider, you gain more than just a portfolio protection service; you gain a partner whose focus is safeguarding your credit union’s long-term success.

Technology And Innovation

Staying compliant in a rapidly changing financial environment requires advanced tools and forward-thinking innovation. Solutions should integrate tools that enhance efficiency and control. At State National, we integrate advanced technology into every facet of portfolio protection, designed to simplify compliance while improving efficiency and control.

• Automation — A proactive approach ensures that the vast majority of insurance updates — about 79% — are handled completely behind the scenes, with no credit union or member involvement. This includes AI-powered processing to extract and update insurance information.
• Platform Technology — A proprietary platform can streamline insurance tracking and reporting, giving you the tools needed for real-time program oversight, clear audit trails, and automated accuracy to prepare for any internal or external review. This technology should also automate payment changes, adds, and refunds, heightening accuracy, speed, and ease of use for your staff.
• Intelligent Document Processing (IDP) — Utilizing AI and machine learning can revolutionize the way we process incoming insurance documents, increasing speed and accuracy. State National’s industry-first IDP solution has revolutionized the way we process incoming insurance documents.
• Proactive Member Communication — Technology should enable time-optimized outbound calls, web searches, automated notifications, customized member videos, and automated chatbot support. These features contribute to fast, effective resolution of member issues, reducing the risk of uninsured members and enhancing transparency.

Client-Centric Support

A strong provider acts as a dedicated partner invested in the credit union’s success. At State National, we’re more than just a vendor. We’re a dedicated partner invested in your success. This involves:

• Customizable Solutions — Tailoring programs to meet specific needs.
• Dedicated Support — Providing personalized guidance and responsive assistance.
• Direct-to-Client Efficiency — Streamlining communication and processes for faster, more accurate results.

Reliability Through Experience

Experience and a commitment to consistent excellence are essential for reliable portfolio protection. State National has built a legacy of reliability, with a commitment to providing consistent excellence. A provider should offer expertise and dedicated support to ensure successful partnerships and safeguard the credit union’s long-term success.

Compliance is a critical investment in the future of your credit union. At State National, we help you face the complexities of today’s regulatory landscape with advanced technology, deep compliance expertise, and an unwavering commitment to transparency. By prioritizing advanced technology, expertise, and transparency, credit unions can navigate the complexities of the regulatory landscape effectively and build a foundation for trust and growth.

At State National, we’re dedicated to being your trusted partner in compliance and transparency. Discover how we can support your credit union’s needs and develop a strategy for long-term success.

As the leading insurance carrier in the United States specializing in CPI, State National offers single-source solutions for credit unions, banks, finance companies, and specialty lenders of all sizes. Our services are cost-effective and tailor-made to safeguard assets against uninsured collateral losses.

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Takeaway No. 1: Embrace The Chaos

Regardless of political leanings, “DC now stands for ‘Disruption and Chaos,’” quipped Jim Nussle, president and CEO of America’s Credit Unions. Nussle has rare insight into these discussions — although he has led the industry’s largest trade group for a little more than a decade, prior to that he was a member of Congress and later a member of President George W. Bush’s cabinet, leading the Office of Management and Budget.

“The president and majorities in Congress are doing exactly what they promised they’d do, and they’re moving forward with their agenda,” he said from the main stage Monday at the Walter E. Washington Convention Center, noting that 50% of Congress is new since the last round of tax cuts in 2017. “We as credit unions have to play the cards we’ve been dealt; that’s just a fact. We can’t wish it away; we can’t be frustrated. Yes, there is chaos, but we have to embrace that chaos to some extent.”

That makes credit union advocacy more important than ever.

“We need to recognize that if we’re not at the table telling our story, we may definitely be on the menu,” he said.

How Will Disruption And Chaos Impact Credit Unions? A substantial portion of the industry is built around serving federal government employees. With federal jobs potentially in jeopardy, credit unions are preparing diverse responses. Read more today.

Takeaway No. 2: Taxation Threat Is More Real Than Ever

Threats to the tax exemption are always a key topic at GAC, but the fight to preserve the industry’s tax status was front and center this year.

“This time is different,” said Carrie Hunt, chief advocacy officer of the trade group. “It feels different because we have a different political makeup in Congress and because Congress is tackling taxes through the [budget] reconciliation process. The problem with this is we’ll have no opportunity to really debate or influence a final bill in Congress. This is why we’re here at GAC — in the next months we’ll be throwing the kitchen sink at the problem so that we end up in a good position on the other end.”

To that end, America’s Credit Unions and other industry groups are closely focused on the “Don’t Tax My Credit Union” campaign, and Monday’s proceedings included the announcement that TruStage (formerly CUNA Mutual Group) has committed $250,000 toward those efforts.

Time and again, Nussle, Hunt, and others stressed that the way to protect the industry and the more than 140 million Americans it serves is to tell the credit union story. That includes emphasizing the positive impact credit unions make on their communities while also highlighting the fact that credit unions are moving into communities for-profit banks have abandoned, showcasing the industry’s role as consumer advocate and financial first responder during disasters like hurricanes and wildfires.

“We don’t want anymore regulatory sermons from new nominees who come in here and try to tell us about consumer protections,” Nussle said. “We were consumer protection before it was cool. We’re about action, not just words.”

The goal for the week, he added, should be to put aside any personal partisanship and focus on being “partisan for credit unions.”

Takeaway No. 3: NCUA To Scale Back Staff

The National Credit Union Administration could look and operate much differently by the time GAC 2026 kicks off. During a conversation on the main stage with Nussle, Kyle Hauptman, chair of the NCUA, said the agency will have to slim down by as many as 100 employees from its current roster of approximately 1,200 by this time next year. That’s likely to be accomplished through a combination of attrition and early voluntary retirement, he added.

Hauptman, a Republican, was appointed to the board by President Trump in 2020 and named chair shortly after Trump was sworn in for a second term. That kind of scaling back mirrors broader efforts to shrink the size of the federal government, although the agency is funded by the credit unions it regulates and not by any congressional directive.

“We’re going to have to do more with less,” Hauptman said from the stage. “My colleagues know we’re going to have fewer employees, so what are we going to do?”

One possibility includes changing the exam cycle and structure to focus more closely on complex credit unions that present a larger risk to the National Credit Union Share Insurance Fund. Credit unions that are adequately capitalized and have sufficient liquidity could see examiners in their shops once every 18 months; for the smallest credit unions, that cadence might even change to every two years, though nothing has been decided yet.

“When you’re down 100 people — 10% of your workforce — you’re going to do some things differently,” Hauptman said.

Hauptman also briefly addressed rumors that financial regulators could be consolidated, emphasizing that although he has “zero authority over this,” he’s not in favor of it. What’s most important, he stressed, is that any agency overseeing credit unions needs to understand why they’re important and what makes them different from other financial services providers.

Just as credit unions are experimenting with artificial intelligence, Hauptman said the regulator is also doing the same. The NCUA already uses large language models to spot outliers and trends within call report filings, and the chair indicated many government agencies have taken similar steps. The IRS, for example, uses AI to determine who is subject to audits, he said.

With those efficiencies in mind, the NCUA has purchased 80 licenses for Copilot, the new AI tool from Microsoft.

“We’re already at the point where some employees are saying, ‘This would be easier on my personal computer,’” he said. “People can tell when there’s a better way to do something.”

Hauptman’s remarks also included the news that the regulator is changing its policies around data collection for NSF and overdrafts. That information will now be confidential and will no longer be included in public call reports.

Takeaway 4: Leadership Matters More Than Ever

Your Turn

What struck you about the first day of GAC? What are your big takeaways? What have we missed? Drop me a line or flag me down and let me know.

Email Aaron

The first day of GAC also included a keynote address from Carla Harris, a senior advisor at Morgan Stanley and a lifelong credit union member.

Harris’s remarks focused on leadership and how new generations in the workforce have forced a change to traditional leadership strategies. The “my way or the highway” top-down leadership structure of the 1980s doesn’t apply anymore. The employer-employee contract has changed, she said, driven not just by new demographics taking over the workforce but by external events like the COVID-19 pandemic that reshaped on-the-job expectations. Today’s table stakes for leadership are simple: transparency, inclusivity, and feedback.

The response to “jump” is no longer “how high?” she said.

“When I say ‘Jump’ to a millennial, they ask ‘Why?,’” she added.

She also offered what she called “eight pearls of intentional leadership,” including:

• Authenticity: “When you’re in an environment like we are now, you want your people to bring all of their talents to the room so you as a leader have access to all the talent, creativity, and execution skills they can possibly have,” she said. If people can’t bring their authentic selves to work, they’re doing a disservice to themselves and the organization.
• Trust: Why do consumers trust their barber or their favorite restaurant? Because those providers have delivered time and again. Credit unions know how to build trust, but today’s volatile economic environment and shifting job market have put trust at a premium. “People want a source they can trust,” she said. “And that will be the linchpin of your client relationships and a linchpin in keeping your best people.”
• Diversity and Inclusion: Although some industries have moved away from prioritizing diversity, much of the credit union sector continues to embrace DEI. “You must be intentional about [diversity], because it will not just happen,” Harris said. Even more, she added, diversity breeds innovation. More people means a greater range of experiences, a greater range of experiences results in a variety of perspectives, and a variety of perspectives means more ideas — which is where innovation comes from.

Read More On-Site Coverage. The second day of the industry’s annual event included insights into how the regulator and Congress operate, as well as leadership lessons from a basketball legend. Read “An NCUA Slowdown, Leadership Lessons, And More: Takeaways From Day 2 Of GAC 2025.”

The post Chaos, Taxation, And More: Takeaways From Day 1 Of GAC 2025 appeared first on CreditUnions.com.

As the lone Republican on today’s board, however, Hauptman’s potential to reshape the agency might be limited. By design, the board must be politically split. Unless Democrats Todd Harper, the agency’s most recent chair, or Tanya Otsuka are removed from the board, President Trump won’t have the opportunity to replace them until Harper’s term ends in August 2027.

With all that in mind, CreditUnions.com reached out to leaders from across the industry prior to Trump’s inauguration to ask what they want from the next iteration of the board. The question was simple: What are your hopes for the next NCUA chair?

Transparency And Communication

Jenee Rawlings, President & CEO, Yolo Federal Credit Union ($412.4M, Woodland, CA)
“My biggest hope for NCUA’s anticipated leadership transition from Harper to Hauptman or anyone else is that the newly appointed chair leads with transparency and effective, two-way communication. The concerns and challenges of a small or midsized credit union are likely different from that of a multi-billion-dollar organization. Credit unions are the most heavily regulated in the financial service industry. As Hauptman has no experience working in credit union operations himself, collaborating with credit union leaders to understand the impact of regulations on credit unions and advocating for credit unions of all sizes is important to successfully move the industry forward.

A Stronger Voice, A Modern Approach

Michael Abernathy, President & CEO, Buckeye State Credit Union ($143.3M, Akron, OH)
“Kyle Hauptman would be a breath of fresh air as the chair of the NCUA. He is a significantly different personality from his two most recent predecessors [Rodney Hood and Todd Harper] in that he is far more outspoken and is not afraid to voice unpopular opinions when necessary. This, to me, is fantastic news for the credit union movement as it is my hope that Mr. Hauptman will be able to provide a stronger voice for credit unions in Washington in the fight for deregulation and against needless legislation that works against our industry … A leader like Mr. Hauptman can lead the charge by ensuring examiners and legislators understand the financial system just went through five years of different shock scenarios. Now would be a good time to allow the financial system to heal, not add more regulation and legislation.”

Christopher Hendry, President & CEO, IC Federal Credit Union ($604.3M, Fitchburg, MA)
“I believe one of the most difficult things a new chairman is going to face is making sure legislators in DC understand the impact they have when they’re trying to regulate the financial industry. You can’t compare Bank of America to a community bank to the majority of the credit unions. We don’t all have the efficiencies of scale and some decisions [legislators] make have an adverse effect on the smaller credit unions. If you took away all of those small, local institutions, everybody would have to work have to work with larger regional or national banks — and I’m not sure that’s in everyone’s best interest. That’s a big challenge to face, and he’s already doing it — helping to educate legislators that sometimes when they think they’re providing a fix, it’s not necessarily a fix for everybody.”

Richard Sellwood, COO, USF Federal Credit Union ($1.1B, Temple Terrace, FL)

“To support the growth and resilience of the credit union industry, Mr. Hauptman’s priorities should include modernizing regulations to balance safety and innovation and reducing compliance burdens that hinder progress. He should emphasize fair, risk-based supervision that offers constructive feedback rather than punitive measures. Open dialogue and collaboration with regulators is essential to ensuring the agency’s policies reflect the needs of credit unions. Additionally, he should maintain the focus on advancing financial inclusion — particularly in underserved communities — and providing clear guidance to navigate economic challenges like interest rate volatility and inflation. Strengthening cybersecurity must also remain a top priority to protect against evolving threats.”

A New Direction

Anonymous, CEO of a small credit union

“There is obviously a risk to speaking openly against the NCUA, especially since Hauptman will be in the minority for at least a while. While I am cautiously optimistic that he has a better grasp and opinion of our industry than Harper does, I have reached out to him personally about vendor issues and received the same weak response I’ve been getting for years. The NCUA publicly claims it is trying to achieve authority for vendor oversight, but its efforts have been weak and sporadic. It publicly declares its admiration of us while constantly telling us we’ve got ‘more work to do’ to be considered adequately diverse and inclusive. I don’t like the direction we’re going. I have been swimming upstream for quite some time, and I’m hoping Hauptman will at least be a weaker current to swim against than Harper. I hope Hauptman starts to pull the knife out of our backs and maybe throws me a life preserver. I guess we’ll see.”

Embracing Innovation

Amanda Habansky, President & CEO, Peoples Advantage FCU ($98.4M, Petersburg, FA)

“I hope the next NCUA chair will continue pursuing regulatory balance while embracing innovation. Credit unions must continue innovating in a market saturated with unregulated fintech players aggressively pursuing our members. These fintechs often don’t have our members’ best interests at the forefront of their business models.”

Jason Lindstrom, President & CEO, Evergreen Credit Union ($564.9M, Portland, ME)

“I look forward to Kyle Hauptman becoming the NCUA board chair. I have found him to be in favor of common-sense regulation for credit unions, and I believe he wants credit unions to take care of our members as we best know how versus trying to regulate via a political agenda. I think he will make innovation and security a priority along with transparency between the NCUA and credit unions. I’m hopeful we will see credit unions thrive under his leadership.”

Less Regulation, More Support For Small Shops

Carolyn Mikesell, President & CEO, Public Service Credit Union ($80.1M, Fort Wayne, IN)

“The biggest thing I’d like to see is less regulation. The biggest challenge for a credit union of our size is maintaining compliance with all of the regulations. Other than that, I can’t change who’s in charge or what they do; we just have to learn how to live within those parameters.”

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