Every year, CU Times asks experts from fintech companies that serve credit unions to look back on the biggest technological advances that impacted the credit union industry over the previous 12 months, and to discuss the innovations they believe will take center stage for credit unions in the world of fintech in the coming year.
In part one of this two-part series, you’ll hear from six executives from CD Valet, Happy Money, Infusion Marketing Group, Cotribute, Vertice AI and Rapid Finance. Read part two here.
What in your opinion were the biggest advancements in credit union technology in 2025?
Howie Wu, Head of Product, CD Valet: The most significant advancement has been the industry-wide drive to bring real-time payments to the forefront of credit unions’ digital offerings – including contactless debit and credit cards to same-day ACH and mobile wallet payment solutions.
This continued shift was fueled by the need to remain competitive, especially with big banks and fintechs. The expectation for digital-first member experiences combined with increased competitive pressures and the current rate environment make it imperative for credit unions to advance their digital product offerings and offer competitive deposit rates to keep members satisfied and engaged.
For example, by first assessing internal capabilities and gaps, many credit unions were able to leverage AI as a seamless part of lending workflows, helping automate approval and underwriting processes to improve applicant experiences while strengthening credit decisions. Ultimately, the real breakthrough was not AI itself, but the way credit unions used it intentionally – as a means to deliver transparency, efficiency and outcomes that truly matter.
Tim Keith, CEO, Infusion Marketing Group: The use of AI to streamline back-office function including documentation verification and risk assessment in the underwriting process. These advancements address credit union leaders' very valid concerns about their own risk in implementing AI tools. By allowing lenders to set their own parameters, credit unions can roll out time-saving AI solutions with more confidence.
Philip Paul, CEO and Co-founder, Cotribute: The introduction and slow adoption of AI-enabled platforms were one of the most significant and transformative advancements for credit unions in 2025. This is pivotal as credit unions continue to prepare for another year of digital acceleration and as competition from digital banks, neobanks and third-party fintech providers intensifies. AI-powered capabilities are critical to ensuring future success and resolving the industry’s most persistent technology challenges and pain points. AI moved from being an experimental technology to a ‘must-have strategy’ for credit unions to remain competitive and meet evolving member expectations.
Mitch Rutledge, CEO & Co-founder, Vertice AI: Agents, agents and more agents – The rise of AI-enabled agents was the biggest advancement this year. All the leading fintechs are embracing agentic AI functions to empower consumers and staff members. Agents are driving more efficient data access, process efficiency and a more member centric personalized experience.
Will Tumulty, CEO, Rapid Finance: The growing adoption of embedded finance capabilities for small business (SMB) lending has been one of the most significant advancements in credit union technology this year. Credit unions are increasingly leveraging third-party platforms that cover all aspects of the lending process, including underwriting, risk assessment and servicing. With the U.S. SMB lending market valued at nearly $1.7 trillion, adopting embedded finance solutions enables credit unions to potentially capture a larger market share. This approach also reduces operational burdens and costs without requiring credit unions to build infrastructure in-house. Additionally, we’ve seen progress in integrating digital solutions that streamline lending processes and reduce friction for members, particularly small business owners seeking fast and easy access to capital.
What will be credit unions' biggest priorities heading into 2026 in the areas of fintech partnerships, AI and/or other areas of business related to technology?
Wu: With the advancement of AI and the significant rise in AI-enabled search engines, credit unions will need to place a bigger priority on keeping their offers and institutions relevant and top of mind, particularly with prospective members.
AI is poised to drive much more specific and targeted results to the end user, creating potential further limitations on a credit union’s visibility in the market. Finding new AI-friendly tools and digital marketing strategies, such as listing relevant products in unbiased digital marketplaces, is a powerful way for credit unions to expand their reach – helping increase brand awareness and putting their best offerings in front of a wider audience.
Tomko: Heading into 2026, credit unions’ biggest priorities in technology will center on striking the right balance between innovation and trust. Fintech partnerships and AI offer enormous potential to modernize lending practices, streamline operations and deliver personalized member experiences, but confidence in these tools must be matched with rigorous oversight. A human-in-the-loop approach will remain essential, ensuring AI decisions align with credit unions’ strategy, values and regulatory obligations. Transparency will also be nonnegotiable: Members and regulators alike expect lending decisions to be clear and free from bias. Ultimately, while AI can enhance efficiency and insight, it will never replace the human relationships at the heart of credit unions. When used thoughtfully, it can strengthen those bonds, driving both resilience and member loyalty in the new year.
Keith:
- A more streamlined digital account opening and onboarding experience for new members with enhanced fraud protections built in.
- A better understanding of the individual institution’s financial performance through better integration of macro-economic metrics with member relationship data.
- Harnessing the power of AI to make better deposit rate pricing decisions.
Rutledge: Heading into 2026, two priorities consistently top the list for credit union leaders: Membership growth and operational efficiency. Both are areas where AI can make an immediate impact. Credit unions want to understand their members at a deeper level and deliver more personalized, timely engagement. At the same time, teams are stretched thin and looking for ways to work smarter without adding headcount. That is pushing the industry toward fintech partnerships that blend technology with real strategic support. The credit unions that embrace these tools early will be well-positioned to grow faster and deliver greater value to their members.
Tumulty: With 2026 quickly approaching, technology selection will be a top priority, especially in a market crowded with third-party vendors offering similar services. SMB owners need quick access to capital to keep their businesses running or to grow. Credit unions can meet this demand by minimizing paperwork, offering fast applications and providing clear decisions. While building all processes internally may be tempting, many credit unions are constrained by balance sheet limitations, operational demands or regulatory rules. Instead, they can turn to embedded lending solutions specifically designed for SMB owners.
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