December 17, 2025—As you prepare for the coming year, we’ve gathered insights from industry experts and media sources on the market trends, service priorities, and technology investments that will impact credit unions in 2026. Five key themes emerged: next-stage AI investment, new lending models, payments and fraud management enhancements, and updated strategies to grow member engagement and trust.
AI as core infrastructure
In their Economic Update on AI’s impact on the economy, America’s Credit Unions cites roughly two‑thirds (~66%) of credit unions now plan to leverage AI for credit decisioning, making lending analytics and underwriting one of the hottest AI investment categories. Rachel Peacock, managing director of financial services for the staffing firm InsightGlobal, outlined in a recent blog post what they are hearing from finance institutions with regards to AI and automation. In 2026, she says, financial services will be defined by a pivot from digital access to AI‑driven, real‑time, programmable finance, and all under intensifying margin and regulatory pressure.
Across financial institutions, AI adoption is no longer limited to single software pilots. AI is transforming all areas of our organizations and AI driven technology is becoming the main engine for lending, servicing, fraud management, and internal operations. Many financial institutions are investing heavily in data modernization too so these more advanced AI models can work at scale, turning historical and real‑time data into better credit decisions, predictive servicing, and proactive risk management. Bank Director’s 2025 Technology Survey released in September 2025, for example, reported that 28% of banks have invested in data analysis platforms or capabilities in the prior 18 months, rising to 70% for banks over $10 billion in assets, as institutions work to aggregate, organize, and clean data for AI and analytics use. For credit unions, the AI pivot may be less about chasing every new feature and more about retooling traditional lending, payments, and member engagement to survive in a world of tokenized wallets, private credit, and rising fraud.
Next‑gen lending and private credit
In lending specifically, AI‑powered decision engines and agentic AI are being used to automate underwriting, incorporate alternative data, and deliver approvals in minutes instead of days. For credit unions that traditionally win on relationships, there is an opportunity to combine AI insights with human advice, widening your members’ access to credit while still delivering on our industry’s promise and its cooperative values.
Lending isn’t the only area facing reinvention through data optimization and other AI-powered technology. Global finance and technology consulting firm West Monroe’s 2026 Financial Services Industry Outlook states that “the banking sector enters 2026 amid accelerating change. Economic headwinds, regulatory shifts, and rising fintech competition are testing the limits of traditional models. But opportunities to reinvent are everywhere. The banks that thrive will be those bold enough to reimagine themselves as technology platforms, not just financial institutions.”
By 2026, West Monroe suggests, lending economics will be reshaped by embedded finance, B2B and BNPL‑style models, and a rapidly expanding private credit ecosystem. In the coming year, financial institutions must lean into API-first, AI-driven platforms that leverage real-time data and partnerships to stay competitive, while consolidation pressures, private credit growth, and automated compliance drive modernization. Alternative and fintech lenders are already using AI and non‑traditional data to deliver faster, more flexible offers, forcing credit unions to either partner, build, or risk disintermediation.
Payments, wallets, and fraud
Payment rails and consumer behavior are undergoing a structural shift: tokenized payments, real‑time networks, and digital wallets are becoming primary interfaces for many consumers. For some of your members, their online home for financial management is now a digital wallet or super‑app, not your credit union’s mobile app. This trend will push institutions to integrate more deeply into external ecosystems while fighting to keep their brands visible.
With money movement advances come new methods for fraud. AI‑driven fraud—deepfakes, synthetic identities, and sophisticated invoice or ACH manipulation—continues to rise, making centralized, verified data and stronger controls essential. As shared in our blog post “Critical 2026 ACH Rules Changes Every Credit Union Should Know”, Nacha’s 2026 rule changes and broader payments regulation are raising expectations for ACH fraud monitoring, operational resilience, and incident reporting, turning proactive fraud and risk analytics into table stakes rather than differentiators. Of course, fraud mitigation and risk control are the foundation of all payments channels.
Tech stack renewal and automation
Many credit unions are hitting a 2026 inflection point where legacy cores, bolt‑on digital layers, and fragmented point solutions can no longer support big data models and real‑time, AI‑driven operations. Cornerstone Advisors‘ Modernize This: Core Systems and the Critical 5 article cites “banks and credit unions are facing a worrisome paradox today: Keeping up with technological advancements has become more critical, just as the vendor outsourcing market has become more fragmented, cumbersome, and less service-oriented.”
Industry voices are calling this a “tech stack expiration date,” where leaders must decide what to keep, sunset, or rebuild for a programmable, API‑first future that can support tokenized payments, embedded partnerships, and rapid product experimentation.
Member experience, trust, and regulation
Member experience remains a central theme for 2026, but the definition is shifting from simply a good mobile app to well-orchestrated, personalized journeys across money movement channels and third party technology partners. AI‑powered assistants, proactive alerts, and financial wellness tools are part of our everyday interactions with members and credit unions are aiming to deliver tailored guidance rather than just transactions. As credit unions navigate intensifying competition and escalating member demands, AI-powered tools empower them to provide scalable, personalized experiences grounded in data insights. In his CreditUnions.com article, Empowering The Credit Union Movement To Deliver Personalized Member Experiences, CEO and Co-founder Mitch Rutledge of Vertice AI, a leading provider of member growth and marketing effectiveness software, outlines how AI solutions can enable credit unions to analyze member preferences and engagement patterns, delivering personalized communications at scale to enhance engagement, loyalty, and retention.
Regulatory scrutiny of payments, operational resilience, and consumer protections is also intensifying, increasing demand for stronger governance, third‑party oversight, and data ethics. Credit unions that prioritize a transparent use of AI, strong fraud safeguards, and demonstrable member benefit are best positioned to turn regulation and credit union trust into strategic assets rather than constraints.
Final Takeaway
For today’s credit unions, strategic action and investment in technology are essential. 2026 will test how well credit unions can blend innovation with compliance. Those investing now in AI‑ready systems, ethical governance, and member experience first design will set the pace for a new era of cooperative finance—one where technology amplifies, rather than replaces, the member connection.
Please note: This information is provided for educational purposes only. Please consult your legal and compliance teams for regulatory guidance.
Additional Resources
- Credit Union Technology Trends in 2026, CU 2.0, September 2025
- The Six-Point Plan to Re-ignite Credit Union Growth in 2026, The Financial Brand, December 2025
- Credit Union Finance Leaders Saddle Up for 2026, CreditUnions.com, December 2025
- Outlook for US Credit Unions, Pathways for Growth in 2026, S&P Global, December 2025
- 3 Strategic Pillars for Credit Union Membership Growth in 2026, FLEX, December 2025