Continued AI education and application, vendor management, security, business services and payments to be key areas of focus for credit unions next year
Member Driven Technologies (MDT), a CUSO that hosts the Symitar core processing system from Jack Henry™ to provide a private cloud alternative for core processing and IT needs, today shared trends expected to most significantly impact the credit union community next year.
More concrete education – and then action – around AI as the product ecosystem continues to explode. AI has been the major trend of 2024, and still there are challenges in the sense of understanding organizational policy on when and how AI can be successfully leveraged in an industry that is constantly exposed to sensitive member information. In 2025, we’ll see more education and guidance shared from trusted AI partners which will help credit unions select which use cases and AI providers might work for their unique institution and member needs.
This will be especially critical as new AI players continue to explode onto the scene seemingly daily; the landscape is only going to grow more crowded and therefore confusing for credit unions. We can also expect a surge in data-focused initiatives next year, as establishing robust data infrastructure, governance and analytical frameworks should be a prerequisite to any AI initiatives.
All eyes on security – for credit unions and their vendors. Data security will remain a top priority, with an increased focus on not only safeguarding internal data and information but also ensuring that vendor data management is up to par. With the rise in vendor data breaches and cyberattacks, it will be more important than ever for credit unions to understand how their vendors are managing and protecting their data. And, these conversations should now include questions around how and if vendors are incorporating AI into their product feature set, and unknowingly to their end users.
The expansion of business services. Credit unions have long dominated the financial industry in terms of service; however, that gap is shrinking with banks quickly catching up. Next year, credit unions will double down on ensuring they are able to offer the services and solutions members want – including comprehensive business services for companies of all sizes. After all, availability of solutions is a critical service differentiator. By offering relevant commercial deposit and lending services, credit unions can better support businesses throughout their communities while also maintaining and growing their competitive differentiator.
Creating seamless, integrated payment experiences. In 2025, it will be crucial for credit unions to prioritize offering seamless, integrated payment solutions that provide members with greater flexibility and choice. With growing demand for digital wallets and real-time payment methods, members expect to be able to pay how and when they want.
Leveraging Robotic Process Automation (RPA) for efficiency gains. Credit unions are increasingly exploring RPA to streamline repetitive tasks and enhance operational efficiency. In 2025, we expect a growing number of credit unions to adopt RPA for processes like member onboarding, compliance reporting and loan servicing. By automating these workflows, credit unions can improve accuracy, save time and allocate resources to higher-value strategic initiatives, positioning themselves for long-term success.
A shift toward becoming more project oriented. We have seen credit unions start to become more project oriented, with some even forming their own project management offices. This is a huge departure from how things have traditionally been done, with projects primarily being run by branch managers or someone in IT. By becoming more project oriented, credit unions can be more dynamic and proactive, positioning themselves to navigate emerging challenges and seize new opportunities. This trend demonstrates that there is no limit to what credit unions will do or how they’ll pivot to ensure they are effectively competing, and most importantly, meeting members’ needs.
"Credit unions currently face increased security risks, an influx of new market entrants, consumer demand for increased choice and more competition than ever before,” said Matt Baaki, CTO at MDT. “Next year, it will be critical to rely on trusted partners to help credit unions navigate the challenging fintech landscape, helping them to make strategic decisions that will drive growth and success. We are proud of the adaptability and determination of the credit union community, and we look forward to continuing to help them meet their goals next year and beyond.”
About Member Driven Technologies
Member Driven Technologies (MDT) provides a private cloud alternative for core processing and IT needs. The CUSO hosts the Symitar core processing system from Jack Henry™, as well as dozens of seamlessly integrated solutions and supporting services to help run the entire institution, such as digital banking, payments, lending, cybersecurity and imaging. Rounding out its comprehensive suite, MDT also offers business continuity, disaster recovery and regulatory solutions as well as consulting, data analytics, email hosting and hardware purchasing services. By partnering with MDT, credit unions across the country are boosting efficiencies, enhancing security and reducing costs while maintaining a high level of control. Visit mdtmi.com or follow @memberdriven for more information.