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.

Key Takeaways:

• Understand how member expectations are evolving in a changing financial landscape
• How to use data to identify key segments and deepen engagement across audiences
• Deliver consistent, personalized experiences across every member channel
• The role of embedded insurance in deepening member relationships
• Align strategies with members’ life stages and long-term financial goals

Download the slide deck here

Produced and sponsored by: 

The post Engagement That Drives Growth In 2026 appeared first on CreditUnions.com.

At the center of that shift is the core system. It is where data, delivery, and decision-making all connect. Choosing a provider today is no longer a purely technological choice; it is a strategic one that shapes how credit unions serve members, manage growth, and adapt to what comes next.

And as the market continues to consolidate, knowing who leads, who’s gaining ground, and who’s standing firm has never been more important.

Fewer Players, Bigger Plays

Consolidation continued through the first half of 2025, as the number of active credit unions fell by 171 in the past 12 months, from 4,631 to 4,460. Three new institutions entered the field, but mergers and closures once again outpaced new formations — a reminder that although the industry continues to evolve, scale and efficiency are increasingly driving its structure.

Even as the number of players shrinks, credit unions are serving more members than ever before. Total membership climbed by 2.7 million, or 1.9%, reaching a record 145 million by mid-2025. That steady growth reflects the continued appeal of cooperative banking, especially in an environment where consumers are seeking value, stability, and trust.

Financially, the movement remains strong. Shares increased 4.9%, or $95.1 billion, to reach $2.042 trillion. Loan balances grew 3.9%, or $63.2 billion, to $1.7 trillion, signaling ongoing confidence from both lenders and borrowers.

Competition for deposits remains intense, but credit unions continue to prove that loyalty and relationship-based service can drive growth even when pricing power is limited. There might be fewer players on the field, but they are making bigger plays.

MARKET SHARE FOR TOP 20 CORE PROVIDERS BY NUMBER OF CREDIT UNION CLIENTS
# REPRESENTS TOTAL CREDIT UNION CLIENTS | % REPRESENTS TOTAL MARKET SHARE^*
SOURCE: Callahan & Associates

The Giants Reposition

The same names continue to anchor the core processing landscape, but their footing looks a little different this year. Fiserv remains the market leader with 1,155 credit union clients, representing 25.9% of the industry, although its share slipped 118 basis points from the year prior. Jack Henry follows with 535 clients, 12.0% of the market, after gaining 25 basis points over the same period.

Together, the two serve 37.9% of all credit unions by client count. Their combined presence shapes much of the industry’s technological direction, but the dynamics between them tell a story of slow, deliberate repositioning rather than disruption.

Jack Henry continues to strengthen its grip among the largest institutions, serving 214 credit unions with more than $1 billion in assets, two more than last year. Fiserv has 153 in that group, up by one. In the $250 million to $1 billion range, the momentum swung in Jack Henry’s favor, which now leads with 211 clients compared to Fiserv’s 172, a decline of 21 for the long-time leader.

Fiserv still dominates the smaller asset tiers, where legacy relationships and multi-platform flexibility keep it deeply embedded in community institutions. But the market share data suggests that some of that loyalty is being tested, as credit unions weigh the value of scale and support against modernization and adaptability.

The hierarchy remains — but the ground beneath it is moving.

The Current Beneath The Core

The core market keeps evolving, even when the surface looks still. Credit unions continue to merge, modernize, and migrate, and those quiet shifts reveal where the current is heading.

Of the 174 credit unions that closed their doors in the past 12 months, 36 were Fiserv clients, representing 22.4% of all closures. Including those that switched providers, Fiserv ended the year down 99 total clients, the largest decline of any vendor. Still, it remains the market leader, serving more than a quarter of all credit unions nationwide.

Corelation again stood out on the growth side, adding 23 new credit unions to its KeyStone platform. The company now serves 211 institutions, lifting its market share by 67 basis points to 4.7%.

Across the broader market, of the 27 core processors with at least $400 million in combined client assets, seven gained clients, 16 lost clients, and four held steady. The rankings barely moved, but the direction of change is clear. Fewer providers are winning a greater share of relationships, and the middle of the market continues to thin.

Mind The Platform

Symitar remains the industry’s most widely used platform, serving 699 credit unions across three providers: Jack Henry with 535, Member Driven Technologies (MDT) with 97, and Synergent with 67. Altogether, 15.7% of credit unions nationwide operate on a Symitar-based core.

The overall count of credit unions fell by four this year, but the shifts within that total reveal ongoing motion. Jack Henry lost nine clients, whereas Member Driven Technologies added five and Synergent held steady. The adjustments might seem minor, but they highlight how scale and service models continue to reshape vendor relationships beneath the surface.

Fiserv’s Portico platform moved in the opposite direction, adding 84 new credit unions in the past year for a total of 613 clients, or 13.7% of the market. The growth reflects Fiserv’s continued effort to migrate credit unions from older systems to a smaller number of modernized, integrated cores.

That migration came at the expense of several legacy platforms. Fiserv’s CUSA lost 38 clients, FedComp’s Platinum platform dropped 31, and Galaxy declined by 26. The trend points in a clear direction: fewer platforms, deeper functionalities, and closer alignment with credit union strategy.

The pattern is not about who is new or who is fading. It is about how the infrastructure of the industry continues to tighten — fewer systems supporting a larger share of members, and each playing a more strategic role than ever before.

The Human Connection

Technology continues to evolve, but the human element behind every core decision remains unchanged. Every line of code, every systems upgrade, every migration still comes down to people. The teams that run the operations, the vendors that build the tools, and the members they serve.

Core systems remain the foundation of that connection. They enable every interaction, every transaction, and every moment when a member chooses a credit union over another option. Even as artificial intelligence reshapes processes and automation expands capacity, success still depends on human judgment, collaboration, and trust.

Credit unions balance progress with purpose. They don’t chase the newest tool; they use the right ones to serve members better. The system powers the work, but people define its purpose. That is what keeps the movement human.

This page is updated annually with market share figures available at midyear. For a look at last year and how things have shifted, click here. Note: The market share data presented reflects the information submitted by participating companies. 

Evaluating Core Processors? Peer Suite Has You Covered. Whether you’re a credit union evaluating core processing solutions or a supplier evaluating market share, Peer Suite is loaded with technology partner data that makes it easy to uncover deeper insights to fuel your strategies. Curious to learn more? Schedule a conversation with Callahan & Associates today. Learn more today.

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It’s a chance to hit the reset button — to reflect on where you’ve been and to focus on where you want to go. For credit unions, this isn’t just a business exercise. It’s an opportunity to recommit to a mission that’s foundational: people helping people.

The world is changing quickly, but that core philosophy remains your greatest strength.

It’s what sets you apart. It’s what draws members to you. The question now is how you can carry that timeless mission into a new year and new era of growth.

The Difference Is You

You know your community better than anyone.

You understand your members’ financial needs and their goals — whether they’re saving for a new home, launching a small business, or preparing for retirement. That deep connection is something big megabanks and fintechs simply cannot replicate.

On your path forward, you have a unique opportunity to build on that foundation and ensure you can meet the changing needs of your members for years to come. By prioritizing your strategic goals, you can position your credit union for a bright future.

Data from the Jack Henry 2025 Strategy Benchmark shows that credit unions are zeroing in on three key strategic priorities going into 2026:

• Increase operational efficiency.
• Grow loans.
• Acquire new members.

These priorities aren’t just about business growth — they’re about strengthening your ability to serve your communities and members.

The Power Of Purpose-Driven Priorities

Increasing operational efficiency isn’t about cost-cutting; it’s about making your credit union more agile and responsive.

When you streamline processes and automate routine tasks, you free up your team to do what they do best: engage with members and provide personalized service. This focus on efficiency allows you to get back to the core of your mission — delivering exceptional service and support that only a credit union can provide.

You’ve always been a trusted financial partner, and that trust is more important than ever.

By finding ways to do more with the same, you can dedicate more resources to the relationships that matter most. It’s about creating an organization that’s ready to meet the future needs of your members.

Growing loans and acquiring members are two sides of the same coin.

Your ability to provide access to capital is a cornerstone of a healthy community, helping members achieve their dreams and businesses expand. And as you know from Callahan’s Trendwatch webinar series, loan and savings growth is picking up, especially for credit unions who are focused on deepening their member relationships.

Looking Ahead With Confidence

In terms of top concerns, credit unions told Jack Henry they’re thinking about issues like fraud losses, acquiring younger members, and cyberattacks.

These are not easy challenges, but they are all connected to a central theme: the need to future-proof your credit union.

You cannot afford to settle for the status quo.

To tackle these challenges head-on, credit unions need a technology platform that is comprehensive and integrated. A system with an open architecture is essential because it gives you the flexibility and control to evolve your technology ecosystem. This means you can stay agile and integrate new fraud and cybersecurity technologies easily as they emerge.

With open technology, you can quickly add new fraud prevention tools and instantly update your cyber defenses, giving you the power to protect your members and their assets.

This way, you aren’t just reacting to what’s next — you’re ready for it.

When it comes to acquiring younger members, the digital experience plays a key role in helping you achieve your strategic goals. The way you interact with these members digitally will define their perception of your credit union. Younger generations want seamless, mobile-first experiences that align with how they live and work.

By investing in digital banking and automation, you can meet these expectations and show them that a credit union is the perfect choice for their financial future.

Eyeing The Horizon

As your credit union considers what’s next, there seems to be a clear picture of the technologies that will help you thrive.

According to the Jack Henry 2025 Strategy Benchmark, credit unions are planning to invest most in fraud prevention, digital banking, and automation. These aren’t just one-time upgrades — they’re part of a continuous journey of technology innovation.

By focusing on these areas, you’ll be addressing your top concerns while laying the groundwork for exceptional service and support. Your technology becomes a tool for building deeper relationships, allowing you to provide instant, personalized experiences that truly meet your members’ needs.

This continuous innovation is what helps you deliver on the promise of your mission and stay ahead of the curve.

The Role Of A Reliable Technology Ally

As you think about your path forward, it’s also important to consider the kind of support you need to get there.

Your technology provider should be more than a vendor — it needs to be a reliable ally who can support you through every step of your evolving journey. It should grow with you over time, providing the service and innovation you need to succeed. The right technology provider plays a key role in your business value and success.

The credit union mission is still the same — your members come first and your focus is on them. Your commitment to community involvement and financial inclusion is what makes your credit union so special.

A strong technology ally should share that philosophy and stand by you as you support your members and their communities. They should be proud to help you help others.

A New Beginning

You know the power of your mission; and you’ve always been committed to making a difference.

Now, you can use technology as a tool to amplify that mission and serve your members in new and innovative ways. By focusing on the future and staying true to who you are, you can not only meet the challenges of today but also build a stronger, more resilient credit union movement for generations to come.

At Jack Henry, we’re proud to stand with you, empowering the credit union movement with technology that strengthens the connections between people and their financial institutions.

For information about Jack Henry, visit jackhenry.com.

The post A Fresh Start For A Timeless Mission appeared first on CreditUnions.com.

By 2026, hundreds of financial institutions serving millions of households nationwide are expected to offer BNPL. The banking industry is responding to the rapid rise in demand for this payment option, particularly from the 70% of U.S. consumers who would prefer to use BNPL from their trusted financial institution rather than fintechs like Klarna or Affirm.

It’s timely that financial institutions are entering the space: members have responded positively to this flexible financing solution from their credit unions. In the months following launch, credit union BNPL programs saw more member usage than all fintech BNPL providers combined. Equipifi’s aggregate data shows over 80% of members continue using their credit union’s BNPL into the second year, boosting usage by 34% compared to the previous year.

This level of consumer adoption is typically seen with innovative fintech products, not with traditional brick-and-mortar financial institutions. And yet, we’re seeing it happen with forward-thinking credit unions. Even more excitingly, the growth appears to be accelerating.

These BNPL products are all powered by a legacy piece of technology that is giving credit unions a competitive advantage over their fintech counterparts: Their banking core.

The core gives credit unions a 360-degree understanding of their members’ financial position and overall banking relationship. It provides real-time insights into each member’s budgeting needs. In other words, credit unions have all the data elements to determine a member’s true propensity to repay loan products.

It also allows them to design a best-in-class BNPL program.

The Advantage Of Your Banking Core Data

In today’s digital age, consumers make purchase decisions and engage with financial services differently. They expect everything at their fingertips, which makes accessibility, transparency, and flexibility essential features for any banking product looking to gain traction. A banking core-powered BNPL solution provides exactly that.

• Offers Powered By Banking Relationships: Unlike fintech BNPL providers, credit union BNPL can give members a clear understanding of their purchasing power whenever they need it. Members appreciate that the BNPL offers they receive are based on their individual financial circumstances and account for their ability to pay over time. That means no surprises and no accidental overextension.
• Removing Rejection From The Process: Compared to the fintech BNPL experience, which typically requires an application and approval process, credit union BNPL removes friction. Using cash flow and relationship data in the core, credit unions can underwrite members more efficiently, generating pre-approved BNPL offers. The result? No application. No wait time. No fear of rejection. And what’s more, members appreciate the convenience: they are only a few clicks away from completing the loan and seeing the funds deposited into their checking account.
• Always On And Accessible Now: The pandemic accelerated the growth of online shopping and with it a need-it-now mentality. Consumers are generally less patient, whether it is for a product that takes too long to be delivered or a service they have to wait to receive. BNPL gained popularity because it helps consumers purchase items that they might otherwise have had to wait and save for. A survey conducted by Michigan State University FCU ($8.2B, East Lansing, MI) found many members wouldn’t make certain purchases at all without access to BNPL. In fact, Gen Z and millennials prefer products like BNPL because it allows them to budget for the future without sacrificing their present quality of life. That makes credit union BNPL even more compelling. Because it is connected to the core, members can access offers at any time of day, accept loans in seconds, and receive funds instantly.

Credit unions are taking a popular payment format like BNPL and making it smarter, more intuitive, and frictionless.

Your Banking Experience On BNPL

Connecting your banking core with a high-engagement product like BNPL unlocks even more advantages.

Since the credit union originates these BNPL loans and tracks repayment within the core, they gain insights into their members’ repayment behavior. This is particularly valuable at a time when BNPL activity is largely absent from consumer credit profiles.

And because the core is at the center of a credit union’s standard products, the benefits of BNPL can be extended to other services with minimal friction. Here’s how:

• Smarter debit cards. A core-connected BNPL product enables all existing debit cards to offer splitting payments on eligible transactions. Credit unions who offer BNPL on the debit card have seen a 16 percent increase in debit card usage, boosting wallet share.
• Smarter checking accounts. BNPL adds flexible financing capabilities to checking accounts, allowing credit unions to better meet members where they are. Much like the holiday loans that give members more cash flow during high-expenses periods, checking accounts enabled with BNPL can play a similar role year-round, all without any manual intervention.
• Smarter banking experiences. Much of today’s BNPL activity takes place outside traditional financial institutions, leaving credit unions with limited visibility into repayment behavior. Credit unions can use their own BNPL products to start filling in that gap. Many are already using members’ credit union BNPL history to help them access more loan products, often at better rates.

Starting With Your Own Data

Financial institutions have a growing role to play in shaping the future of BNPL. And the banking core often contains the signals that can help determine when and how to begin.

In fact, most credit union BNPL started with one simple question: Are our members already using BNPL?

Then they looked at the data.

For example, Arizona Financial Credit Union ($3.6B, Phoenix, AZ) tracked fintech BNPL activity in its debit card data monthly. By the end of 2024, nearly $2 million was leaving the institution every month, and the volume has been growing 16% annually.

Educators Credit Union ($3.6B, Mount Pleasant, WI) asked the same question and discovered that 46,000 of its 150,000 members were already using BNPL elsewhere.

As member expectations evolve, many are looking to their primary financial institution for modern solutions. If they can’t find what they need, they will turn elsewhere

In 2025, Affirm announced that over 2 million consumers had activated its BNPL-enabled debit card. Klarna launched its own debit card in July 2025 and saw over 1 million cards activated in just 11 weeks.

As more consumers adopt fintech BNPL cards, the unique data advantage credit unions hold in their banking cores may diminish.

For now, however, there’s still a significant opportunity to use that core and the insights it holds to deliver meaningful, competitive financial experiences.

Lo Smith is a fintech executive with over a decade of experience helping financial institutions bridge the gap between traditional financial services and emerging fintech. As Head of Revenue at equipifi, she leads go-to-market strategy, driving success for banks and credit unions using tailored BNPL solutions that align with their strategic goals. She brings a deep understanding of stakeholder needs, operational execution, and long-term growth. Previously the Director of Financial Institutions at Array, Lo is passionate about enabling institutions to thrive in an evolving financial landscape. She can be reached at lo.smith@equipifi.com.

equipifi is the leading Buy Now, Pay Later (BNPL) platform built for financial institutions. Its white-label solution integrates with major banking cores, aligning BNPL offerings with consumers’ financial goals and banking preferences. equipifi enables institutions to boost engagement, grow market share, and deliver transparent, manageable installment options directly through their own apps. https://www.equipifi.com/bnpl-for-credit-unions

The post Introducing Your Banking Core To The Power Of A Fintech appeared first on CreditUnions.com.

I grew up in central Washington and later moved to Seattle. Credit unions were all around me, yet I didn’t join one until my late twenties. Why? Because no one in my peer group talked about them, and digital banking convenience was all I cared about. Big banks had already mastered that, and they were ready for us.

That’s the reality credit unions face today. I’m 29 — a “Zillennial,” born in 1996, straddling millennials and Gen Z. My first phone was a pink Motorola Razr flip. I watched dial-up give way to broadband, then smartphones, and now AI. I’ve lived through every stage of the digital transition, and my expectations — and those of my peers — have been shaped by technology that adapts seamlessly to our lives.

The Internet Caveman And My Daughter’s Future

I joke that one day I’ll tell my daughter I was an “internet caveman.” Before AI, I had to type a question into a search bar, click through half a dozen sources, and piece together an answer.

Then came Google Gemini’s AI summaries. I didn’t ask for it. I didn’t expect it. But once it appeared, it delighted me so completely that I adopted it instantly — and suddenly, Google had my loyalty. I had bounced between search engines before — Google, DuckDuckGo, others — but this one experience of seamless usefulness created stickiness overnight.

That’s the essence of easy technology adoption: When something works so well and feels so natural that people don’t need to be convinced. They just use it — and they don’t go back.

That is what credit unions must provide if they hope to retain the next generation of members.

A Generational Warning

The statistics are clear. According to McKinsey, only 31% of credit union members are millennials or Gen Z. Nearly 70% of membership skews older, heavily toward baby boomers, who still account for about 39% of members.

At the same time, the NCUA reports that over half of federally insured credit unions lost members year-over-year in 2024. Membership isn’t just stagnant; for many institutions, it’s shrinking.

And the demographic cliff is coming fast. Baby boomers still control the majority of U.S. wealth, but over the next two decades an estimated $84 trillion will transfer to millennials and Gen Z, according to Cerulli Associates.

The question is simple: when that wealth moves, will it stay in credit unions? Or will it flow into big banks and fintechs that already meet younger generations where they are — mobile-first, frictionless, and personalized?

Held Hostage By Legacy Cores

At the heart of this challenge is the core. Too many credit unions are still tied to technology designed for a world that no longer exists — systems that haven’t fundamentally evolved in decades.

Leaders know the frustration. Inflexible contracts. Long development cycles. Workarounds stacked on top of workarounds. The very systems designed to empower credit unions have become shackles.

Meanwhile, my peers almost never visit branches. Their financial lives happen entirely online, through apps that anticipate their needs. Every day they interact with companies that deliver seamless digital experiences. And when their credit union can’t do the same? They switch. Quietly, permanently, and without regret.

The Stakes: A Wealth Transfer Unlike Any Other

The wealth transfer isn’t hypothetical — it’s already underway. Millennials and Gen Z are beginning to inherit not just assets, but financial decision-making power.

If credit unions don’t modernize their technology now, they will miss this moment. Losing younger members today means losing the opportunity to serve them tomorrow, when they’re managing mortgages, retirement accounts, and small business loans.

Imagine trying to convince a 25-year-old to stick with a clunky app that doesn’t integrate seamlessly with the rest of their digital life. You don’t get a second chance. Once they’ve moved their money, they’re gone.

The Credit Union Magic — And Its Fragility

Credit unions are different. They’ve always been different. They sponsor the little league teams, fund scholarships, and stand by their members when no one else will. They’re guardians of their communities — steady protectors in a financial world too often dominated by profit motives.

But guardianship isn’t enough if the sword is dull. The magic of credit unions — their member-first purpose — is fragile if it’s not matched by the technology members expect.

Today’s “dragon” isn’t the big bank across town. It’s irrelevance.

Future Members. Future Ready.

The solution isn’t chasing every shiny tech trend. It’s building a foundation that allows credit unions to evolve at the speed of their members’ expectations. That means modular, cloud-native systems, open APIs, and the ability to integrate tools like AI, fraud prevention, and predictive insights without breaking the bank.

It’s also about something deeper: delight. Members don’t care whether it’s a “core upgrade” or “microservices architecture.” They care that their credit union is easy to use, available on their phone, secure, and anticipates their needs.

Think of my daughter’s generation. By the time she’s managing her first checking account, she won’t see any difference between talking to her AI assistant and talking to her credit union. That’s the level of seamlessness tomorrow’s members will demand.

Accountability For Leaders

I didn’t join a credit union until 26. If I had only judged on digital convenience, I probably never would have joined at all. And many of my peers haven’t.

But once I did, I saw what makes credit unions powerful: their ability to help people unlock opportunities, weather storms, and build futures. That power is too important to lose.

And here’s where the accountability falls:

If you aren’t challenging your core provider, you’re choosing stagnation.

If you aren’t evaluating alternatives, you’re risking irrelevance.

If your technology stack isn’t designed for the next 20 years, you’re gambling with your members’ trust.

This isn’t a plea. It’s a reality. The future of the movement depends on leaders making hard decisions now. Because if credit unions don’t modernize, they won’t just miss out on growth — they’ll lose an entire generation of members.

And once lost, that generation isn’t coming back.

Garrhett Petrea is vice president of sales at Vyrdia. He can be reached at gpetrea@vyrdia.com.

Vyrdia is reimagining core software for a new generation. Built to be cloud-native, flexible, and member-first, Vyrdia empowers credit unions to thrive in a digital-first era while staying true to their community roots.

The post Losing The Future: How Credit Unions Can Win Back Younger Generations appeared first on CreditUnions.com.

Credit union core systems power lending, deposits, digital systems, underwriting, account management, and more. They are a central piece of credit union operations, but the one thing a core system can’t power is relationships. No matter which vendor a credit union chooses, the core can’t replace employees with empathy, a culture of caring, and the work credit unions do to improve their communities.

It’s core processing week on CreditUnions.com. In the days to come, keep your eyes peeled for:

• The top 20 core providers by market share.
• Why the messaging that accompanies a core conversion matters almost as much as the new vendor.
• How credit unions are deploying smarter tools, layered defenses, and cross-functional collaboration to protect their technology, their business, and their members.

Now it’s your turn. What lessons have you learned from core conversions? What spurred you to finally pull the trigger — or to put it off for another year? How is your current core setting your credit union up for success in 2026 and beyond? Drop us a line and we could feature your story on CreditUnions.com.

Evaluating Core Processors? Peer Suite Has You Covered. Whether you’re a credit union evaluating core processing solutions or a supplier evaluating market share, Peer Suite is loaded with technology partner data that makes it easy to uncover deeper insights to fuel your strategies. Curious to learn more? Schedule a conversation with Callahan & Associates today. Learn more today.

The post Inside Core Week On CreditUnions.com: Top Providers, Smart Strategies, And Credit Union Stories appeared first on CreditUnions.com.

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The post Competing Against Consumer Lending Fintechs with Strategic Tech Partnerships appeared first on CreditUnions.com.

As 2025 winds down, the editors, writers, analysts look back at what topics resonated and what voices stood out this year. From strengthening operations to enhancing member engagement, preparing for emerging technology to navigating competitive pressures, the following curation remains essential reading.

AI Improves Training At Premier America

Premier America Credit Union ($3.3B, Chatsworth, CA) uses artificial intelligence to help staff build rapport with members. Employees love it, efficiency is up, and service is better than ever.

Why does Alix like this piece?

“I chose this article because it shows AI at its best — not replacing people, but sharpening the human skills that make credit unions strong. In a year when AI dominated headlines, Premier America offered a grounded example of how to turn a buzzy technology into better training, better confidence, and better service.”

Read it today.

What’s In A Name: Chief Product Officer

At Bay Federal Credit Union ($1.8B, Capitola, CA), Brooke Morley improves communication and collaboration across departments to offer members the products they want and need.

Why does Alex like this piece?

“This piece stood out to me because it explores the emergence of a product officer role within credit unions, a position well-established in other industries but still relatively new in this space. I believe it has the potential to significantly influence how credit unions innovate and serve their members.”

Read it today.

What Can Credit Unions Learn From Rocket Mortgage?

The mortgage lender’s Super Bowl 2025 ad isn’t just smart marketing. It’s a challenge to credit unions to step up their storytelling game and connect with members on a deeper, more emotional level.

Why does Rebecca like this piece?

“This story hits all the right notes for me. It’s fresh, fun, and grounded in real-world insight. I love stories that inspire credit unions to think differently about the market and their shops. Alexandra draws on firsthand experience talking with credit union leaders to offer practical insights on untapped opportunities that can make a real difference. This piece captures that creative energy.”

Read it today.

Navigant Levels Up Its Data-Driven Branching Strategy

Navigant Credit Union ($4.0B, Smithfield, RI) is using internal and third-party data to better understand branch traffic patterns and consumer banking behaviors — and the results are paying off far faster than expected.

Why does Aaron like this piece?

“Navigant Credit Union isn’t just picking new branch locations by throwing a dart at a map. Instead, leaders there are backing up their decisions with all kinds of data, including transaction patterns, census stats, and more. It’s a modern strategy to fuel one of the most old-school methods of member service.”
Read it today.

Michigan Legacy Takes A Scientific Approach To Spotting Elder Financial Abuse

A partnership with the Institute of Gerontology at Wayne State University has helped Michigan Legacy Credit Union ($218.7M, Wyandotte, MI) reduce reports of elder fraud by as much as 50%.

Why does Savana like this piece?

“Bad actors are only growing more sophisticated. With the average age of credit union members coming in at 53 right now, it’s essential for institutions to think about how they prevent and identify cases of elder financial abuse. Retirement and estate planning are only part of the puzzle when it comes to this stage of life. Proactivity is key. Michigan Legacy’s work with Dr. Peter Lichtenberg is an amazing example of how this can make a measurable difference.”

Read it today.

What Is Stagflation? And What Does It Mean For Credit Unions?

The growing risk of stagflation puts the Federal Reserve in a difficult position and raises the stakes on potential consequences for member finances, investment portfolios, and margin management.

Why does Will like this piece?

“It paints a picture of complex economic ideas and explains how they affect Main Street, or in other words: the people credit unions are tasked to serve. In a period of so much uncertainty around policy decisions, the “this or that” structure is helpful to understand the potential pros and cons of different paths.”

Read it today.

How Well Do You Know The Gen Z Economy?

It was great to see the Callahan & Associates editorial team, specifically editorial analyst Andrew Lepczyk, employ a new format this year. Andrew is out on well-deserved leave and unable to share his favorite piece from 2025, but his work deserves recognition.

Take the test today.

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