What trend(s) do you see for 2025? - Part 1

Jon Tvrdik, CEO, WaveCX

In 2025, we anticipate a significant shift towards post-navigation user interfaces (UIs) that embrace command-line interfaces and generative search. This trend is driven by the need to eliminate the inefficiencies of traditional navigation systems, where users often have to click through multiple menus to find what they need. Instead, AI-powered engagement tools that combine intelligent search with contextual navigation will transform how financial institutions serve their customers. Users will be able to type a simple query and receive not just an answer, but a guided action to solve their problem. This approach will make interactions seamless, personalized and efficient, ultimately enhancing the user experience.

Another key trend is the integration of generative AI into business processes to enhance efficiency and productivity. AI is being rapidly adopted to streamline workflows, eliminate unnecessary steps and provide users with fast, accurate outcomes. In banking, this means simplifying procedures and cutting through the overwhelming number of products and services to help users find the best options based on real-time insights.

Preetha Pulusani, CEO, DeepTarget

In 2025, credit unions will focus on digital transformation. But that has been an industry buzz phrase for more than a decade, so what are we talking about? The key difference: going beyond digitizing existing processes to fundamentally reimagining how financial services can proactively serve and empower members through intelligent, predictive, interconnected technologies. Thus, 2025's digital transformation is characterized by hyper-personalization powered by AI and machine learning, predictive member experience shaped by advanced analytics and seamless omnichannel integration creating fluid experiences across all touchpoints where a member's journey will feel continuous and intuitive, regardless of the interaction channel.

Steve Reider, President, Bancography

Bancography anticipates continued interest in the purchase of commercial banks, and regulatory and legislative battles over the legality of such transactions.  Interestingly, expect some odd divergence in positions.  State bankers’ associations and other lobbying groups will continue to oppose credit union purchases of banks, but individual community bank owners seeking to cash out, or facing uncertain succession options, will favor keeping credit union – bank deals legal, as this expands the pool of potential buyers for their banks, especially in all-cash (versus stock) deals, raising their potential returns from selling their banks.

Alex McLeod, CEO, Parlay Finance

In 2025, credit unions will prioritize enhancing member experience through strategic fintech partnerships, particularly in business lending. Key trends will include deploying AI-powered systems that provide deeper member insights and predictive analytics, enabling personalized financial solutions for both consumer and business members. Credit unions will expand their commercial lending capabilities, using data intelligence to better serve small business members with competitive rates and streamlined approval processes. This member-centric approach, combined with their traditional community focus, will help credit unions strengthen member loyalty and grow their business loan portfolios while boosting operational efficiency and impact.

Sarah Martin, CEO, Pulsate

In 2025, I expect there to be a major transformation in how credit unions view their digital banking platforms. Traditionally seen as transaction-focused cost centers, these platforms are increasingly being recognized as potential profit centers. With up to 30% of members checking their banking apps daily, there are more opportunities than ever to engage account holders and meet their needs. However, most digital banking technology today is better at facilitating transactions than recognizing and addressing members' needs in real-time. This is akin to opening a branch in a high-traffic area but failing to hire staff trained to cross-sell. Digital-only and neobanks have already tackled this challenge successfully, and it's time for community FIs to leverage the right tech solutions to catch up.

Amanda Crocker, COO & Interim CEO for SWIVEL®, an SWBC Company

Instant payments will continue to gain ground in 2025 beyond typical consumer account-to-account transfers. More credit unions are realizing the significant opportunities this technology offers to streamline and advance their internal business processes and B2B transactions. Solutions that can help them fully leverage these benefits, especially by providing easy, streamlined support in the processes with their core systems, will be critical.

I also expect to see a move for more modern UI/UX workflows in the new year. Modernizing UI/UX is crucial for member adoption, efficiency and innovation. Robust strategies like behavior analytics, persona-driven design and adaptive workflows are key, not just as tech fixes, but as cultural shifts to meet evolving member needs. Designing with these nuances in mind will differentiate forward-looking organizations.

Preethi Janardhanan, VP, Client Solutions, Rapid Finance

In 2025, AI will continue to play a transformative role in streamlining operations, improving member experiences and enabling fraud detection and risk management. Credit unions will leverage predictive analytics and data-driven decision-making to personalize financial services through identifying new opportunities for both their retail and small business members.

As small businesses largely remain underserved, credit unions will prioritize this segment, recognizing its importance to local communities and the broader economy. Traditional financial institutions will invest in advanced technologies to drive local economic growth and enhance their competitive edge.

Additionally, we expect to see a rise in strategic partnerships between community FIs and fintech companies, as these collaborations will help credit unions overcome challenges such as lean budgets, outdated systems and the need for specialized skills to implement and manage AI solutions. Fintech partnerships can provide turnkey solutions, enhance risk management and deliver actionable, data-driven insights, ultimately helping credit unions to scale their offerings and improve member satisfaction.

Danielle Sesko, Director of Product Management and Innovation, TruStage™

As we move into 2025, digital lenders will continue to face issues related to defaults. Increased availability of embedded finance options will increase these risks, so lenders expanding into digital loan products will need strategies like embedded Digital Lending Insurance (DLI), which can protect against borrowers' inability to pay in light of specific, commonly occurring insurable risks, to help mitigate them.

Other key trends to watch include potential regulatory changes around BNPL, data privacy and lending practices, making compliance crucial for smooth operations. Finally, financial inclusion will remain a top priority. Ensuring embedded digital lending options meet the needs of underserved communities without exacerbating financial inequality will be key for everyone.

Jack Henry Corporate Strategy Team

Deposits, lending, fraud, payments, and open banking will be key trends in 2025. Stabilizing deposit growth presents opportunities, but yield-hungry consumers and maturing short-term CDs will challenge financial institutions to prioritize personalization, innovation, and flexibility. Collaborating with AI vendors will help financial institutions efficiently fund loans and scale without losing their personal touch. Fraud prevention will benefit from stronger cross-sector collaboration to address scams and improve identity verification. Payment solutions will help businesses and consumers optimize their cash flow. As open banking matures, financial institutions will provide consumers with a central hub for managing data and privacy settings.

Michael Ball, EVP Marketing, Kinective

In 2025, AI will continue to reshape credit unions, but the focus will shift to practical, member-centered adoption. The real challenge for credit unions lies in distinguishing hype from reality—what will drive meaningful value for members versus what’s merely a trend. AI has the potential to revolutionize credit unions by enhancing personalization, automating processes, and improving member service, but its success will depend on real-world application. Members want seamless, secure, and compliant experiences—whether through smarter fraud detection, more efficient lending processes, or intuitive self-service tools. Credit unions must embrace AI in ways that build trust and deliver clear benefits to members while navigating regulatory requirements. While we’re at the peak of the AI hype cycle, 2025 will begin to reveal what’s truly impactful: solutions that foster efficiency, strengthen relationships, and provide measurable outcomes for credit unions and their members. The winners will be those who turn AI's potential into everyday reality.

Rick Wettlaufer, Vice President, Client Success, MDT

In 2025, more credit unions will look to strategic partners to help them navigate the increasingly complex and competitive fintech ecosystem. Such engagements with consultative experts can help credit unions more effectively vet and implement the technology and solutions that directly enhance their unique value proposition.

There will be an uptick in process mapping and redesign consulting, which can deliver quick wins by optimizing routine tasks and enhancing operational efficiencies. Strategically streamlining workflows allow credit unions to improve productivity while ensuring operations are aligned with the organization’s overarching goals. These efforts ultimately enable credit unions to remain competitive and future ready.

Matt Potere, CEO, Happy Money

At Happy Money, we expect to see more credit unions evaluate and solidify their lending strategies as the falling rate environment drives a renewed capacity for growth. For many, this will mean recalibrating their overreliance on indirect auto loans, instead looking for diversified ways of optimizing their balance sheets with assets that yield an attractive risk-adjusted return.

In 2025, credit unions will prioritize putting deposits to work in ways that optimize portfolios, fuel responsible growth and support members.

Denny C. Howell, COO/HR Mahalo Banking

Intuitive digital-first experiences will be critical in 2025, driven by demands from Millennials and Gen Z, as well as credit unions seeking to better serve neurodiverse members. Credit unions will prioritize member-centric accessibility by implementing digital platforms designed with customizable features that cater to a wide range of cognitive and sensory needs. Additionally, omnichannel banking will ensure a user-friendly experience across digital and physical platforms, improving seamless usability and consistency. By embracing fintech adoption and inclusivity, credit unions can better serve diverse demographics, foster engagement, and strengthen their role as trusted financial partners

Erin Wynn, Executive Director, Product Management, Candescent

Rising financial anxieties, rate fluctuations, and mixed messages about AI have added complexity to financial services this year. Looking forward, we expect credit unions to embrace the opportunity to offer relevant, personalized and contextual financial resources to support members as financial struggles persist.

Also next year, credit unions will separate substance from noise as AI shifts from another buzzword to a powerful tool in their arsenal. Those that conduct proper due diligence on potential partners and applications, ensure there is clean, actionable data in place, and establish a comprehensive AI policy and plan will be best positioned for success.

Keith Riddle, General Manager, Payfinia CUSO

2025 will produce explosive growth in embedded instant payment capabilities.  The FedNow Service represents over 1,000 financial institution participants, and the RTP network routinely processes over 1 million transactions PER DAY.  We would expect this trend to continue in 2025, as members have become accustomed to seamless money movement experiences via Fintech platforms and demand the same level of access from their credit union.

Bob Child, Chief Operating Officer, Origence

Over the past year, we’ve seen significant moves from major retailers, such as Amazon partnering with Hyundai, and large dealer groups expanding into online car sales. While platforms like Cars.com and CarGurus have supported online car shopping for years, consumer behavior is evolving. More people now begin their financing journey online but still finalize purchases at the dealership. This shift presents an opportunity for credit unions to embrace embedded financing and meet consumers where they shop. Industry-wide aggregation will be critical to taking advantage of these opportunities as retailers and dealers look to partner with credit unions for their affordable financing options.

Meredith Keller, Product Expert, Glia’s AI Team

AI will continue to be a disruptor in financial services, offering credit unions the opportunity to streamline operations, improve member experiences and drive innovation. However, it’s critical to adopt AI thoughtfully and responsibly. The right safeguards must be in place, enabling AI to be implemented securely, protecting member privacy and data while maintaining trust.

By following a responsible AI framework, more credit unions will look to unlock AI's full potential while upholding safety, compliance and effectiveness. Prioritizing proven, secure and turnkey AI solutions will be crucial, enabling innovation and strengthening member relationships without compromising security or compliance.

Barry Kirby, co-founder and CRO, Union Credit

Rising loan demand and a persistent deposit crisis will push credit unions to adopt data-driven strategies for precise consumer targeting, offering personalized, firm rates and responsible options aligned with risk profiles.

Anticipated deregulation and the need to attract the next generation of consumers will drive innovation. Credit unions will focus on enhancing digital experiences and integrating embedded finance, seamlessly connecting financing options to shopping journeys on trusted platforms. These efforts will ensure credit unions remain relevant, accessible, and appealing to younger consumers while sustaining growth in a competitive, evolving financial landscape.

Dr. Siva Narendra, CEO, Tyfone

In 2025, credit unions should focus on the seamless integration of instant payments and intelligent banking capabilities within credit unions' digital platforms. The goal is to empower credit unions with the agility to offer personalized, real-time financial services while enhancing security and user trust. This aligns with our vision, driven by the exponential advancements highlighted in Moore’s Law, Nielsen’s Law, and Huang’s Law. These laws that drive innovation in tech provide the foundation to scale computing power, network capabilities, and AI-driven insights, enabling credit unions to compete effectively with big banks and fintechs. We believe that credit unions must evolve into true digital-first institutions that offer the convenience, immediacy and intelligence expected by modern consumers, particularly as real-time payments become the norm.

Will Bryant, COO, Quantalytix

With the new administration, there is a pro-business mood currently within the business world. This includes an already rising expectation for a significantly greater level of transactions across industries but particularly the finance industry. Continuing on trends from the last 2 years, credit unions will need to further invest in ways to better understand their members, preserve their community, and grow.

Shelby Austin, CEO, Arteria AI

The market continues to demand solutions that are highly contextual and tangible. 2025 will place an even bigger premium on the software that delivers the power of modern AI in productive formats to end users. The lion’s share of value will come from highly contextual applications that act as the last-mile delivery of AI into the workflow. AI, like any tool, is only as impressive as the value it drives, and solutions that are built-for-purpose will be best positioned to capture the momentum.

Mac Thompson, CEO & Founder, White Clay

In 2025, financial institutions will prioritize relationship-focused business models to compete for customers’ operating accounts. While many financial institutions believe they already operate in this way, our recent survey showed that 68% of FI users do not feel known by their primary institution, and 50% would consider switching to another bank or credit union that offered more personalized financial guidance. By leveraging customer/member data, institutions can gain a comprehensive view of accountholder relationships, enabling them to tailor advice, products, and pricing. This deeper visibility drives long-term loyalty and establishes institutions as trusted advisors.


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