I recently spent some time catching up on the latest industry insights here on CreditUnions.com, specifically regarding the strategic priorities guiding credit union executives as they continue through 2026 and beyond. It’s clear that while the specific technologies change, the fundamental question keeping credit union leaders up at night remains the same: How do we stay relevant in an increasingly crowded landscape?

That question is one I’ve spent the better part of my career answering. My perspective was shaped first from the inside as an industry sales executive, and over the past decade, as a co-founder and partner of Arriba Advisors. During my time on the vendor side, I realized my true calling lived beyond just managing tech and that my passion was advocating for the financial institutions that serve as the backbone of our economy. I saw firsthand how often credit unions were at a disadvantage.

Current industry analysis points toward two clear priorities for 2026: a growth mindset and a sharp tech focus. I couldn’t agree more. But after a decade of helping financial institutions negotiate more than 2,000 contracts, we’ve learned you can’t achieve one without mastering the other.

Growth Mindset Needs A Modern Engine

There is a major emphasis right now on organic growth through digital channels. This is the right move, but the fact is, a growth mindset is only as effective as the core that powers it.

If your growth mindset is being held back by a legacy core or a digital banking suite that feels like a relic of 2016, you’re fighting an uphill battle to not only attract new members but also retain current ones. Many executives believe they are too locked into their current situation or that a full core processing evaluation is too strenuous to undertake.

I won’t sugarcoat it: the evaluation process is strenuous. Identifying the right technology partner requires a deep dive into functional requirements, future scalability, and cultural alignment. However, it is also the only way to ensure your digital transformation creates a seamless member experience.

The process is crucial to identify a technology partner that can actually enable your specific strategic goals.

Tech Focus: The Hundred-Vendor Web

The second priority often discussed today is a refined focus on technology, specifically regarding fintech partnerships and AI enablement. The common challenge is determining where technology creates real value.

From my perspective, the challenge is also how you manage the complexity of those choices. Today, a credit union with less than $1 billion in assets often oversees between 100 and 300 different vendors. That’s an enormous portfolio of contracts, renewal dates, pricing structures, and performance obligations.

And, most of those vendors negotiate these agreements every day; your team does not. This is where the balance of power can quietly shift.

Now more than ever, vendor contract negotiation is about ensuring that when you commit to a technology partner, the terms of that relationship actually reflect your institution’s leverage, your goals, and your long-term interests. We know where vendors have room because we’ve sat on that side of the table.

Real value is only realized when the contract protects your interests, ensures service-level accountability, and provides an exit strategy that doesn’t feel like a ransom.

How Credit Unions Level The Playing Field

The current roadmap for credit unions demands the right technology, the right partners, and the right guidance. At Arriba Advisors, that’s precisely what we provide through partner-level engagement and a track record of more than 2,000 negotiated contracts representing millions in annual value.

The roadmap is in front of you. We’re here to help you execute it.

Tom Russell is a co-founder and partner at Arriba Advisors, a strategic advisory firm that helps credit unions optimize member experience and achieve sustainable growth. With deep industry expertise, Arriba Advisors guides financial institutions through technology assessments, vendor evaluations, contract and price negotiations, and much more Contact him at trussell@arribaadvisors.com.

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No longer solely a back-office issue, fraud attacks against credit unions are becoming faster, more technology-enabled, and more pervasive across all member touchpoints.

As digital capabilities advance, institutions must view fraud within a broader risk management framework, especially as financial crimes grow more scalable and irreversible, with schemes like business email compromise, cryptocurrency fraud, identity theft, and lending scams exploiting speed, anonymity, and control gaps.

But there’s also a way credit unions can protect themselves: by implementing practical solutions to counter threats. These include proactive approaches based on internal controls, training, monitoring, and governance, along with identifying weaknesses and addressing them before they can be exploited.

Barry Pelagatti, a partner in RKL’s Audit Services Group and leader of its Financial Services and Risk Management Service groups, shares insight from his 30 years of experience helping financial institutions across the Mid-Atlantic strengthen controls, respond to evolving threats, and manage risk in a practical, proactive way.

How does RKL support credit unions in preventing, detecting, and responding to fraud and identity theft?

Barry Pelagatti: RKL supports credit unions in designing risk-based plans focused on preventing, detecting, and responding to fraud and identifying theft by emphasizing strong internal controls, data protection, access management, security awareness, and incident reporting.

Internally, we focus on safeguarding sensitive information through restricted access, password controls, secure data storage, device security, ongoing training, and prompt reporting of lost devices or suspected unauthorized access.

These same practices help us support credit unions as we work with them to strengthen fraud prevention, improve detection of suspicious activity, and respond quickly to potential incidents.

What are the key fraud trends you’re seeing today, including some recent data and the rise of cyber-enabled and cryptocurrency-related schemes?

BP: Fraud trends today show that financially motivated crime is increasingly digital, fast-moving, and scalable. The FBI Internet Crime Complaint Center’s 2024 Report shows the Internet Crime Complaint Center has received approximately 836,000 complaints per year on average during the past five years, reflecting the persistent nature of online fraud. The report also highlights that cyber-enabled fraud accounted for roughly 38% of 2024 complaints but nearly 83% of total reported losses, with approximately 333,981 complaints and $13.7 billion in losses.

Investment scams were the largest category by reported loss at about $6.57 billion, whereas business email compromise caused roughly $2.77 billion in losses. Cryptocurrency continues to play a major role due to its speed, pseudo-anonymity, and limited recovery options, with more than $9.3 billion in losses in 2024.

Common payment channels include cryptocurrency, wire transfers/ACH, debit and credit cards, peer-to-peer payments, and gift cards. Overall, fraud is becoming more technology-enabled, more cross-border, and harder to reverse once funds leave the victim’s control.

How are fraud schemes evolving, and what should credit unions know about identity theft risks, modern scam tactics, and loan fraud red flags?

BP: Fraud schemes are evolving by blending traditional deception with modern technology, social engineering, and increasingly realistic fake documentation.

Identity theft remains one of the fastest growing crimes, with fraudsters targeting personally identifiable information such as Social Security numbers, addresses, driver’s license numbers, email credentials, insurance data, and loan information.

Tactics include phishing, spear phishing, vishing, smishing, pharming, skimming, mail theft, pretexting, typo-squatting, and whaling. Newer scams like “pig slaughtering” involve building trust over time before steering victims into fake investment platforms, often involving cryptocurrency.

An important takeaway is that scams are no longer always crude; fake websites, executive impersonation, and AI-assisted document creation can make fraud attempts appear legitimate. On the lending side, red flags include unusually large loan requests, questionable repayment terms, inconsistent or forged documentation, discrepancies in personal information, frequent applications, and reluctance to provide supporting details.

What practical steps can credit unions take to strengthen fraud risk management, including detection methods, internal controls, employee training, and overall risk strategy?

BP: Credit unions can strengthen fraud risk management by starting with a formal fraud risk assessment that identifies vulnerabilities, measures risk, and connects those risks to specific control activities.

Strong internal controls are foundational, especially since fraud often arises from control weaknesses. Key measures include segregation and rotation of duties, mandatory vacations, surprise audits, employee account reviews, and background checks for higher-risk roles.

Maintaining a confidential reporting system allows employees, agents, and the public to report concerns without fear of retaliation, which is critical since tips are a leading method of detecting fraud. Continuous monitoring, including automated tools, helps ensure controls are working as intended.

Employee training should be mandatory and ongoing, covering fraud awareness, warning signs, reporting procedures, and consequences. Targeted, frequent, recurring training is especially important for high-risk functions.

At a broader level, organizations should align fraud management with governance, oversight, and a prevention-first strategy, as prevention is generally more effective than recovery after losses.

To learn more about RKL, visit the firm’s website and follow RKL on Instagram, Facebook, X, and LinkedIn for updates on services, insights, community involvement, and career opportunities as well as information about RKL’s mission and values.

The post Fraud Is Faster, Smarter, And Harder To Stop. Here’s How To. appeared first on CreditUnions.com.

St. Cloud Financial Credit Union ($430.0M, Sartell, MN) has quickly evolved from early adopter to advocate when it comes to digital assts.

The Minnesota-based cooperative has built a core-integrated digital asset vault, connected to multiple blockchain networks, and even launched its own stablecoin. But CEO Jed Meyer is quick to clarify this isn’t about chasing crypto because it’s new and buzzy.

“We never set out to be a trailblazer,” he says. “We always start with our member and work outward.”

This time, it started with a market penetration problem.

In 2019, the credit union had roughly 23,000 members in a market of 200,000 people and nearly 40 competing financial institutions. Through strategic planning sessions, two priorities emerged: to better serve underserved populations through customized products, and to understand where member money might be going next.

That second priority led the credit union to digital assets.

“We were seeing some deposit outflows,” Meyer says. “Not a ton, but enough to ask, ‘what are we going to do?’”

In 2023, approximately $1 million in deposits flowed from St. Cloud Financial to exchanges. In 2024, that number jumped to $15 million.

“That’s a 15x trend of liquidity outflows,” Meyer says.

Across the industry, the CEO estimates roughly 3% of deposits might already be leaving for digital asset platforms with no guarantee of return.

“With every innovation in the past 100 years, we were still needed at some point in the lifecycle of the dollar,” Meyer says. “This is the first time that might not be true. When a dollar leaves me for the DeFi space, there’s never a need for a centralized ledger ever again.”

According to Gallup, one in seven Americans reported owning cryptocurrency in 2025. For St. Cloud Financial specifically, Meyer says 16% to 25% of its members either already have or are showing interest in digital assets.

“Relevancy always equals ROI,” he says. “I’m more interested in plugging the hole in the bottom of the income boat than I am worrying about future dollars.”

Education Before Execution

Before building anything, St. Cloud focused on understanding the space.

The CEO says it’s difficult to find education materials, so the credit union helped foster the Minnesota Crypto Council, a nonprofit focused on education for members, staff, and the broader community. For four years, the organization has hosted quarterly sessions, developed training materials, and brought in subject matter experts.

That education-first approach proved critical not just for adoption but also for addressing skepticism.

“When you launch something like this, you have to speak to the 50% of your membership that doesn’t want it,” Meyer says. “This is optional. We’re not forcing anything.”

Industry peers might be even harder to convince. A fall 2025 report from American Banker found the majority of the banks, credit unions, and payments companies it surveyed remain in the discussions and learning phase. The uncertainty around regulations has slowed adoption, and one of the most common arguments against digital assets is its association with volatility and fraud.

Meyer flips that framing.

“What risk have I actually taken?” he asks. “Other than human capacity and time spent, what risk have I taken?”

In his view, the greater risk lies in waiting.

“I actually think people who say, ‘I’ll get to this in five years,’ are taking the risky position,” he says.

What Came First — The Vault Or The Coin?

Although much of the industry conversation has centered on stablecoins, St. Cloud Financial took a different path with the launch of its CU-Digital Asset Vault in March. Initially envisioned as a digital version of a safe deposit box, it quickly evolved into foundational, core-integrated infrastructure. Rather than building a single product, the cooperative deployed a core-integrated digital asset framework developed by DaLand CUSO – Coin-2-Core – capable of operating across multiple financial rails, from traditional payment networks to blockchain-based systems.

“The vault acts as a vault, but really it’s a switch,” Meyer says. “It turns my core into the wallet. It turns my core into the node. It allows me to plug into any DLT [distributed ledger technology] money network.”

At a structural level, the credit union designed the vault around member ownership, employing a self-custody model where members retain control of their digital assets while the credit union facilitates storage and movement. This is in line with the current regulatory environment, where full custody authority remains an area of ongoing clarification. Rather than push ahead in a gray area, Meyer says St. Cloud Financial has spent years engaging regulators at both the federal and state levels, including ongoing dialogue with the NCUA and the Minnesota Department of Commerce. In the meantime, the vault serves as both a practical member tool and a strategic bridge, connecting digital assets back to the cooperative’s core system without overstepping regulatory boundaries.

With the infrastructure in place, launching a proprietary stablecoin became possible. Although that was not originally a main objective of the strategy, a use case convinced the credit union to proceed. Two national food co-ops approached St. Cloud Financial looking for a settlement solution aligned with cooperative principles.

“We offered them USDC,” Meyer says. “They said, ‘We’re a cooperative, you’re a cooperative. We want a cooperative stablecoin.’”

Thus, St. Cloud Financial introduced the Cloud Dollar ($CLDUSD) in late 2025, making it the nation’s first credit union-issued stablecoin.

Still, Meyer cautions against overemphasizing this aspect of the technology.

“In five years, we’ll look back and say that was a small sliver of what we were actually talking about,” he says.

Don’t Stop Here. Stablecoins and digital assets have moved beyond “wait and see” into active development. For a look at both the risks and the opportunities in this next phase of financial services, read “What Should Credit Unions Know About Stablecoins?” only on CreditUnions.com.

Slow Rollout, Strong Signals

St. Cloud Financial has taken a measured approach to rollout.

Following an NCUA audit in late 2025, the credit union launched a friends-and-family pilot in December and expanded to full membership in March. Today, the credit union holds approximately 15 Bitcoin in its system and between 50 and 75 vaults in progress.

So far the most notable insight isn’t volume, Mayer says, but member behavior, especially among younger demographics.

“When they open a vault, they bring everything with them,” he says, indicating it’s been a way to deepen relationships and increase products per member. “We’ve been told, ‘Finally someone is listening to our generation and what we believe our wealth will be.’”

Consumers are already in the cryptocurrency space, and Meyer urges industry peers not to outsource those members.

“You worked hard for those relationships,” he says. “You cannot continue to give your relationships away to third parties.”

An Uncertain Timeline

Crypto is only the beginning for St. Cloud Financial. The same infrastructure that supports digital assets today could eventually handle tokenized financial instruments, identities, and other forms of value.

“This is going to be bigger than a product,” Meyer says. “It’s going to be bigger than one innovation.”

The CEO expects the traditional finance and digital asset ecosystems will coexist and, ultimately, St. Cloud’s strategy is less about predicting the future and more about preparing for it.

“If this takes another seven to 10 years, I’m okay with that,” Meyer says. “If this happens tomorrow, I’m okay with that.”

For credit unions, the question isn’t whether to launch a stablecoin or offer crypto trading. According to Meyer, it’s whether they will have a role in a financial system where money can move, store, and grow entirely outside of them.

“Our only play is to establish ourselves as the access point, the aggregator point, and the trusted advisor point,” he says.

The post A Credit Union Journey Into Cryptocurrency And Stablecoins appeared first on CreditUnions.com.

In this environment, traditional risk tools alone aren’t enough. As digital lending scales, portfolio protection must evolve to meet members within the lending experience itself.

What’s Changing In Borrower Behavior?

Economic pressures are reshaping how members approach borrowing and how confident they feel in their ability to repay. The TruStage 2025 Consumer Lending Preferences Research highlights this strain:

• Borrowers feel increasingly financially fragile.
  • 91% worry that a life event could impact their ability to make loan payments.
  • 73% have experienced at least one financial hardship.
• Repayment anxiety is becoming universal.
  • Eight in 10 consumers are worried about their ability to make their loan payment.
  • Rising inflation, income instability, and higher household debt loads are intensifying this concern.
• Demand for credit remains strong, despite stress.
  • Six in 10 Americans say the current economy makes them more willing to take out a loan for a major purchase or unexpected expense.
• Members want protection built into the lending experience.
  • 70% are more open to credit union payment protection than in prior years.
  • 96% prefer to learn about payment protection before finalizing a loan.

These shifting expectations set the stage for a thoughtful approach to mitigating risk while helping members feel supported and confident.

Why This Matters For Credit Unions

Missed payments are rarely the result of unwillingness to repay. More often, they’re triggered by short‑term disruptions — job loss, illness, injury — that affect multiple aspects of a household’s finances at once. Traditional credit indicators may not capture these real-time stressors, leaving both borrowers and lenders exposed.

Credit unions can protect members and strengthen portfolio resilience by embedding safeguards directly into the loan journey, along with continued face-to-face discussions with loan officers.

The Integrated Protection Approach

When lenders integrate payment protection in the loan workflow and include payment protection in the loan app, members gain confidence at the moments that matter.

In our research, 74% of borrowers said they expect more than one opportunity to learn about payment protection across the loan journey. With a multitouch, multichannel approach, you’re able to reach members when and how they prefer to learn about and consider this protection.

Embedded insurance for lenders is designed to help reduce delinquencies by giving borrowers a safety net, yet it avoids disrupting approvals or elongating cycle times. Think of it as portfolio resilience for lenders through a better member experience.

By presenting options seamlessly, lenders can improve conversion rates without the feel of an add-on sale.

Operationalizing It — Without Slowing The LOS

Credit unions can incorporate consumer loan protection solutions effectively by using user interface (UI) patterns that feel native to the loan origination system (LOS). Best practices include:

• Contextual prompts during pricing and terms review that explain how coverage helps mitigate loan default protection risks.
• Clear, plain‑language disclosures that build trust and support financial health protection.
• Real‑time selection and instant confirmation so protection carries through automatically.

The Leadership Opportunity

Today’s borrowers expect transparency, stability, and personalized support. By embedding payment protection insurance into your digital lending journey, you can help protect members from the financial stress they worry about most. It’s a practical way to keep credit flowing, maintain member trust and scale with confidence.

Learn how you can embed TruStage loan protection to support your members and your portfolio.

Danielle Sesko is the director of product management at TruStage. TruStage is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, WI.

The post Balancing Growth And Risk In Uncertain Lending Environments appeared first on CreditUnions.com.

That realization landed with force for Tracy Verner, community development manager at Alltru Federal Credit Union ($392.5M, Wentzville, MO). After years of watching members absorb financial education but remain boxed out of the system, she began pushing the cooperative to rethink what real progress looks like — what financial empowerment looks like.

“Financial empowerment is information combined with access,” she says. “Many financial institutions offer well-meaning financial literacy — workshops, gamified apps — but it’s still just information. We’re doing an injustice if we provide information without the tools to apply it.”

The philosophy has changed the way the St. Louis cooperative operates, from product design to employee training. The result? Stronger culture, deeper partnerships, and helping more people who otherwise might have remained unbanked.

Gaps And Barriers

To truly empower members, it’s necessary to understand the barriers they face and examine who the credit union is not yet serving.

“If you’re truly committed to empowerment, it’s your responsibility to provide access,” Verner says. “Credit unions were built on inclusion, so ask: ‘Who’s being left out, and why?’”

An early experience in Verner’s credit union career underscored to her the importance of doing things differently. Speaking with a workshop attendee after an event, Verner learned the woman couldn’t open a checking account.

“I was floored,” Verner says. “She had steady income working for the city of St. Louis but couldn’t access a checking account. This was before fintech tools like Venmo or Cash App. She was receiving paper checks, and when the city stopped issuing them, she was forced onto a prepaid card with fees.”

Verner met with her boss and learned the woman had an incident in her ChexSystems report that barred access to checking. In these kinds of screening systems, even a single overdraft charge can easily turn a short-term issue into a multi-year obstacle. At the end of 2025, approximately 6% to 7% of U.S. households were unbanked, according to Bankrate, largely because of prior banking problems.

So, Alltru turned ChexSystems off.

“This was before the Bank On movement even reached St. Louis,” Verner says. “Altru was already questioning those barriers. Leadership was already asking why.”

Don’t stop here. The community development manager at Alltru FCU turned in her barbells for bank accounts and is building access one account at a time. Read more in “Tracy Verner Is Breaking Barriers In St. Louis Finance.”

Expanding Access Without Increasing Risk

Opening access at scale shifts responsibility inside the institution and can raise questions about risk management, making effective collaboration with finance and compliance teams essential.

“Our compliance manager tracks outcomes closely,” Verner says. “We’ve found people flagged in ChexSystems do not show higher fraud or delinquency rates. The data simply doesn’t support the perceived risk.”

Alltru regularly evaluates programs and purposefully keeps guardrails flexible. For example, the credit union noticed an issue involving fraud through ATM deposits among its youth workforce program. So, it pivoted.

“Instead of shutting it down, we increased our fraud education efforts, reduced ATM withdrawal limits, and added monitoring,” Verner says. “We didn’t stop the program. We refined it.”

Alltru takes the same creative approach to lending. Traditional secured loans tend to rely on upfront cash or collateral. That’s a barrier for members without savings. Alltru’s credit builder loan removes that requirement, although it doesn’t release funds immediately to reduce risk while still helping members build credit. In practice, however, early usage indicated Alltru needed to recalibrate the loan.

“Initially, it was $1,000 over 12 months,” Verner says. “We realized some members couldn’t handle that.”

Today, the Missouri cooperative offers loan options as low as $300 because even $30 every month can help members without creating excess financial strain. Alltru has also gradually leaned into relationship lending, and half of its first-time auto loan borrowers don’t have a credit score.

“You start with good intentions,” Verner says. “Then you refine based on real needs.”

Empowerment As An Organizational Mindset

Financial empowerment starts with understanding the consequences of credit union decisions. Verner spends time in the community working alongside nonprofits and listening to members outside the branch to identify where well‑intended policies still limit access.

“Being in the community, working with nonprofits, seeing real challenges brings up more questions,” she says. “It forces you to ask why.”

Of course, asking why only matters if it changes how people make decisions, which is why financial empowerment at Alltru also rests on a shared understanding of what it means to struggle, how strain shows up in everyday life, and who needs support.

“The rising costs of housing, groceries, and auto loans have impacted everyone,” she says. “This isn’t someone else’s problem. This is about our neighbors, families, and even our coworkers.”

That awareness changes decisions, from product design to flexibility at the margins. As a credit union focused on empowerment, Alltru is willing to look for ways to preserve access instead of restrict it.

Forward-thinking credit unions are leading with financial wellbeing. Alltru FCU’s evolution from education to true financial empowerment reflects a broader shift across the industry. The Member Engagement and Financial Wellbeing Consortium, led by Callahan & Associates in collaboration with Gallup, helps credit unions embed financial wellbeing into strategy, product decisions, and culture. Through shared insights and peer collaboration, participating credit unions are aligning around what drives real member confidence, engagement, and long-term growth. Learn how the Consortium is helping credit unions turn empowerment into measurable impact.

The post Why Financial Empowerment Matters More Than Financial Literacy appeared first on CreditUnions.com.

Credit unions committed to serving members with limited or impaired credit operate at the intersection of access, trust, and protection. Fraud management plays a critical role in that mission, but many accept fraud losses that are neither inevitable nor sustainable.

Internal portfolio analysis reveals a striking disparity across the industry. While the average fraud loss rate hovers around 25%, some institutions operate with loss rates as low as 6% without restricting access, increasing false positives, or eroding member trust. The difference between these outcomes: strategy.

The Financial Impact Of The Gap

To understand what this gap means in practical terms, consider a mid-sized credit union with $7 million in annual dispute dollars.

• At a 25% fraud loss rate, approximately $1.75 million of that total reflects loss tied to process inefficiencies, delayed resolution, and misclassified disputes.
• At a 6% loss rate, that loss drops to roughly $420,000.

That’s a difference of $1.33 million every year. For institutions operating on thin margins, this gap can materially impact financial performance.

Why Credit Unions Feel This More Acutely

Research by Cornerstone Advisors provides context for why many credit unions struggle to close this gap. Credit unions earned an average fraud experience score of 75, placing them squarely in “C-grade” territory and trailing several large issuers.

Only 5% of credit union cardholders rated their fraud experience an A, while nearly a quarter graded it a D or F.

Notably, the biggest gaps appeared in:

• Provisional credit issuance.
• Investigation and documentation collection.

These steps are where friction accumulates through manual handoffs, inconsistent timelines, limited self-service, and poor visibility into case status. While more than half of cardholders believe their disputes are resolved within a week, Cornerstone’s research shows 1 in 5 experiences resolution times longer than two weeks, often due to operational bottlenecks rather than investigative complexity.

For credit unions serving subprime or financially stressed members, these delays carry outsized consequences. Access to funds matters more, patience is thinner, and trust is more fragile.

Fraud Experience Is A Relationship Decision

Cornerstone’s data underscores a critical reality: fraud resolution quality directly shapes member behavior. Among cardholders who rated their experience an A:

• 87% reported increased confidence in their institution.
• 39% increased card usage.
• 81% were more likely to add products.
• 83% said the relationship was strengthened.

By contrast, poor experiences drive disengagement, reduced card usage, and attrition.

Proof The Gap Is Real And Fixable

Rogue Credit Union’s experience illustrates what’s possible with the right operational strategy.

“We were seeing about $2.5 million in fraud losses a year,” says James Richie, vice president of payment services at Rogue Credit Union ($4.2B, Medford, OR). “Now, with Quavo, we’ve been able to cut that by close to 60–70%.”

Institutions closing the gap between 25% and 6% loss rates consistently focus on:

• Parallelized investigations instead of linear workflows.
• Clear, auditable provisional credit handling aligned with Reg E and Reg Z.
• Real-time visibility into case status for staff and members.
• Fewer handoffs and less rework across dispute teams.

Protecting The Mission By Eliminating Waste

Serving the underserved does not require absorbing losses as a cost of compassion. Every avoidable fraud dollar represents longer wait times for real victims, fewer resources for prevention, and less capacity to support members when it matters most.

Credit unions that modernize fraud operations are discovering that lower losses, stronger relationships, and better experiences are not competing priorities. They are the same outcome delivered through better strategy.

Explore the full Fraud Experience Differentiator from Cornerstone Advisors x Quavo.

Steve Durney is VP of Partnerships & Alliances at Quavo. Contact him at steve.durney@quavo.com.

Quavo is a technology partner and strategic advisor helping financial institutions resolve fraud and disputes faster and more transparently. Its award-winning platform automates the dispute lifecycle end to end, enabling institutions to reduce losses, ensure compliance, and strengthen customer trust at scale.

The post Serving The Underserved Without Accepting Preventable Fraud Losses appeared first on CreditUnions.com.

Most people wouldn’t take a road trip without putting on their seatbelt first. Simone Suri wants credit unions to take the same approach with their AI journeys.

Suri is chief administrative officer and general counsel at Members Cooperative Credit Union ($1.2B, Duluth, MN). The cooperative started using artificial intelligence in earnest about a year ago, but leadership didn’t just hand over access and let staff loose. Rather, it grants access on a case-by-case basis to employees who request it. Employees with approval may use only the credit union’s licensed Microsoft Copilot, and they cannot submit member data into the tool.

“We don’t want people going to ChatGPT because we have no idea what’s going to happen to that data,” Suri says. “The idea is to use a tool where the data will remain safe. We want our data in a more controlled environment.”

Members Cooperative’s approach to AI revolves around a robust internal policy that provides guardrails for usage. That starts with a risk assessment and written documentation that details for all users when, where, and how they can use AI. Such documentation protects the credit union, staff, and members alike. Although most employees are excited about using AI, Suri says, most people don’t have a technology background. Having a policy like this in place is crucial for helping them understand the opportunities they can leverage as well as what to avoid.

“Anytime new technology and data is involved, we need to take a second and understand not only the benefits but also the risks and how we navigate those risks so we can get the benefits without compromising the security of our data,” Suri says. “This has to be a no-compromise situation.”

The Use Cases

Members Cooperative selected Copilot because of its security, data protections, and integration capabilities with the credit union’s existing tools, Suri says. Although the credit union does not allow member data in AI — which largely rules out use cases for member-facing staff — Suri says there are many ways AI drives back-office efficiencies. But even then, there are guardrails. Associates must disclose when they use AI, and human oversight is required, given AI’s propensity to make mistakes.

“You can’t assume everything coming out of an AI tool is like punching in two times two on a calculator and the answer is always four,” Suri says. “You need to look at results and validate them. We’ve had situations where information hasn’t been accurate. Most recently, I found that people like to put legal questions into AI. Again, you have to think about where AI is generating its answers. The information isn’t coming from an attorney on the other side of the wires answering your question. It’s pulling from all of these different databases, some of which are outdated or old or just might be illegitimate. At the same time, AI may be pulling from sources that are amazing and incredibly accurate, but you still need that human oversight.”

So what are the use cases at Members Cooperative? Like other credit unions, it is still figuring that out. But Suri says inputting existing policies into a licensed AI tool can help improve those policies, whether by making them more concise or uncovering gaps. Similarly, AI could conduct market research or even provide a starting point to draft an AI usage policy. One key, she notes, is the prompts that go into AI. The better the prompts, the better the outcomes.

“Each organization needs to figure out where its comfort level is,” she says. “Some studies have shown we’re not getting the efficiencies we think we’re getting.”

Best Practice: AI tools are everywhere — even Google’s first results are frequently an AI summary. Suri suggests closing off access to public AI sites on all credit union-owned computers. Doing so encourages employees to use credit union-licensed services and steers users away from potentially less secure tools. Plus, she adds, many credit unions are moving in that direction.

The Balancing Act

Suri acknowledges there’s a balancing act between empowering employees and exercising caution. The key, she says, is education. Leaders must ensure organizations are discussing the risks and advantages of AI, identifying use cases, and recognizing how those use cases might vary by department. What’s most important is to keep the conversation going.

“The biggest problem you’re seeing in credit union land today is we know AI is there and people are excited but not talking about how to use it safely,” she says. “Or we talk about a risk once and then not again for six months.”

Risk assessments and robust governance around AI can help alleviate the concern in departments like risk and IT, in part because that kind of documentation provides clear, objective guidance on do’s and don’ts.

“It allows you to recognize risks and contemplate what you’re willing to accept,” Suri says. “What risks are appropriate given the risk appetite of the credit union and which are not? Going through the process in a methodical way like a risk assessment makes it less personal. But you’ve got to have enough knowledge on both sides to have those tough conversations and work through those risks.”

In addition to clear standards for employees, Suri suggest examining all vendor contracts to better understand how those providers use AI. That can be a challenge, especially if the credit union’s point of contact does not have all the answers. If that’s the case, keep digging.

“You’ve got to ask questions about what type of AI tools your vendor is using, what data is going in, and identify associated risks, including compliance and operational risk,” she says. “Those are hard questions for a sales rep to answer, so you usually need to get other folks involved in those conversations.”

Suri adds that memorializing AI disclosure requirements in the contract can help the credit union if vendors change their practices later on.

“Third parties are a significant source of FI breaches,” she says. “If they start putting member data or other proprietary information into those tools, we’re vulnerable.”

The Lessons

Suri admits that even though Members Cooperative has a robust AI plan in place, it still has work to do.

“You could line up 10 employees, ask each one about their comfort level and what AI can do for them, and every single person will have a completely different answer,” she says.

But rather than pushing employees to use AI more, Suri says that varied level of comfort —  which is likely common at many credit unions — exemplifies the need for a thoughtful approach, including a risk assessment and well-formulated governance approach.

The big lesson might not be to shy away from AI, but to be thoughtful about how, when, and where it’s deployed — and always back up usage with human oversight.

“I’m finding more and more folks are getting comfortable with AI and pushing the boundaries, which is great,” Suri says. “It’s good to play with things and challenge yourself. But be cautious along that journey because we are seeing incorrect results. Not because AI has become less accurate, but because people are getting more comfortable and pushing the boundaries of what AI can provide.”

Dig Deeper Into Real-World AI Strategy

Looking for more credit union perspectives on AI? Callahan Webinars highlight peer insights on governance, guardrails, and practical use cases with live and on-demand sessions that explore how cooperatives are putting AI to work.

Learn more about Callahan webinars today

The post Governance And Guardrails Help Credit Unions Navigate AI appeared first on CreditUnions.com.

It feels like the mid-’90s all over again: the baggy jeans, the midriff-baring tops — the explosion of a new technology that’s set to reshape entire industries.

AI is already changing how credit unions do business, from chatbots that improve member service to back-office tools that drive efficiencies, and more. And credit unions have only scratched the surface of the ways this technology will change banking.

With all that in mind, CreditUnions.com has a full lineup of AI-readiness coverage for its annual theme week. In the days to come, keep your eyes peeled for:

• The responsibilities and benefits of a chief AI officer.
• How guardrails and governance are central to Members Cooperative Credit Union’s AI strategy.
• The ins and outs of good AI policy.
• BCU’s keys to turning AI into action.
• A <<curation of credit union AI practices>> pulled together for Callahan clients that shows how credit unions are embracing artificial intelligence today to enhance member service, streamline operations, and ensure relevance for the future.

What about you? How is your credit union using AI? What use cases have you found to drive efficiencies and improve processes? Are your results mostly in the back-office or member-focused? We want to hear all of it. Drop us a line, and we could feature your credit union in a future story on CreditUnions.com.

The post All Eyes On AI appeared first on CreditUnions.com.

Congratulations to this year’s winner, Quavo Fraud and Dispute Solutions, for its groundbreaking approach to financial empowerment.

Featured finalists: illuma, Quavo Fraud & Disputes Solutions, Quinte Financial Technologies, TTEC Digital

The post 2026 Innovation Series: Fraud Prevention & Resolution appeared first on CreditUnions.com.

That shift is embodied in James Hunsanger’s role as chief strategic enablement officer, a title that signals how the organization now thinks about risk, decision‑making, and growth.

How did your career path lead to your current role?

James Hunsanger: My career started in public accounting, auditing banks, credit unions, and insurance companies. I joined the credit union’s executive team in 2011 as vice president of internal audit and ran the audit department for several years.

In 2016, we needed to build out a formal risk management division, so I was given the opportunity to create that program and establish a traditional risk management function, including compliance. Over the years, that area continued to grow. We added collections and credit risk, fraud prevention, BSA, information security, and legal. Then, facilities, operations, and construction management also came under my responsibility.

From 2016 until just last year, I served as chief risk officer. In 2025, we rebranded the division as Strategic Enablement, and my role became strategic enablement officer.

Why “strategic enablement?” How does it reflect the direction the credit union wants to go?

JH: Although we were technically the risk management division, we had all these other functions under our responsibility: operations, credit risk and fraud prevention account servicing, back-office legal work, information security, and even real estate design and construction. We’re deeply involved in real estate strategy, such as where we expand branches, how we design facilities, and how we express our brand through physical spaces. None of that fits under traditional risk management.

We started hearing other organizations use the term “enablement,” and when we looked it up, one definition really resonated: making things possible. That’s exactly what we do. Whether it’s operations, credit risk, information security, or facilities, we’re here to make initiatives possible. We’re creating spaces for members and employees that enable them to do their jobs or achieve their goals. That’s what drove the rebrand.

Are there any misconceptions about your role?

JH: A lot of times, functions like risk management, legal, or information security are seen as inhibitors to progress, but we’ve never taken that approach. Instead, we ask: how do we make initiatives possible in a way that’s safe, secure, efficient, and effective?

What is the No. 1 skill you need to do your job?

JH: Being able to communicate across multiple divisions. Because we’re involved in so many strategic initiatives, we have a broad view of the organization.

We often connect with teams that don’t realize they have dependencies or conflicts. We’ll say, “You have an initiative here, they have one there. These are going to clash, or they’re going to align really well. You need to get in a room together.”

It’s about collaboration and enabling communication across the credit union. That’s what makes the role successful.

What part of your role energizes you? Conversely, what part challenges you the most?

JH: What energizes me is having a meaningful part in so many strategic initiatives. We want to be innovative, progressive, and push the envelope on what it means to be a credit union and serve our members. Getting to be a part of that energizes me.

The challenge is keeping up with everything: operational changes, technological changes, regulatory shifts, economic changes. Supporting initiatives over time isn’t easy, but that’s what we’re called to do.

How do you define success in your role?

JH: At a high level, it’s launching projects successfully and as timely as possible. But more than that, success is being proactively brought into strategic conversations. When our division is asked to participate, it shows our contributions are valued and seen as necessary for project success.

What are you looking forward to in 2026?

JH: Growth. We completed two bank acquisitions last year and are working on two more this year. We’re also expanding digital brand partnerships, rolling out a new account and loan origination system, pursuing branch growth, and supporting internal AI and automation initiatives. Those are especially exciting because they’ll drive operational improvements internally while also impacting members.

What would make you tell another credit union it needs this role?

JH: If you’re looking for a coordinated approach to ensure the success of strategic projects, this kind of role can help. As organizations grow larger and more complex, you need leadership that can collaborate across divisions and be meaningfully involved in initiatives. A role like this helps shepherd those strategic efforts along.

This interview has been edited and condensed.

Job titles say as much about the organization as they do the person. “What’s In A Name” on CreditUnions.com dives into notable, important, interesting, or just plain fun roles to find out what’s happening at the ground level and across the industry. Read the series today.

The post What’s In A Name: Chief Strategic Enablement Officer appeared first on CreditUnions.com.