NEW YORK — Credit unions continue to expand their presence in bank acquisitions at a record pace, but the long-term success of those deals will depend largely on a factor that is often underestimated, according to an analysis published by Prosper Insights & Analytics on Forbes.
Credit union acquisitions of banks reached a record level in 2024 and remained near that pace in 2025, with 16 deals announced through November, according to data from S&P Global Market Intelligence cited by Prosper. Analysts expect the trend to accelerate further in 2026.
The acquisitions are being driven by credit unions’ desire to gain scale, expand geographically and acquire commercial banking capabilities that many banks have spent years developing, the analysis said.
Challenge Often Underestimated
Prosper warned that post-merger integration remains one of the biggest challenges facing acquiring institutions.
“When a credit union acquires a bank, it inherits an entirely different set of systems and operational habits that may not be compatible with its existing structures,” Prosper noted in its analysis. Data may remain siloed, and customers from each institution may encounter different experiences depending on which systems support their accounts.
Emily Steele, president and chief operating officer of digital banking platform Savana, told Prosper that technology integration is often underestimated during merger planning.
“Technology integration is the most underestimated part of M&A planning,” Steele said. “When systems remain fragmented across multiple cores, siloed data, and disconnected digital channels, the member experience suffers at the exact moment continuity and trust matter most.”
The analysis pointed to findings from the 2026 U.S. Credit Union Satisfaction Study by J.D. Power previously reported by the CU Daily, which found overall member satisfaction declined by four points from a year earlier. In addition, more than half of credit union members maintain checking or savings accounts with other financial institutions.
Shifting Balances
“When credit union members are dissatisfied, they will start to shift their balances to other providers instead of leaving outright,” Steele told Prosper. “You see that shift ramp up dramatically in the aftermath of a poorly executed acquisition, as operational problems snowball into reputational damage.”
Prosper said the integration challenges associated with mergers are becoming more significant as financial institutions accelerate investments in artificial intelligence.
The Findings
According to Cornerstone Advisors’ “What’s Going on in Banking 2026” research, cited by Prosper:
- 49% of banks have moved generative AI into production.
- 59% of credit unions have deployed generative AI in production environments.
- Additional institutions are planning AI deployments through 2026.
- More than half of financial institutions are discussing agentic AI at the executive or board level.
Prosper said AI implementation is exposing weaknesses in outdated technology infrastructures, including fragmented systems and disconnected workflows.
“The challenge is that agentic AI does not function well on fragmented infrastructure,” Steele said. “It depends on unified data and a consistent operational context across every channel.”
Where the Focus Should Be
Rather than immediately consolidating systems following an acquisition, Steele said institutions should focus on creating a unifying framework that allows multiple systems to function cohesively.
Prosper said its research suggests credit union members may be particularly receptive to AI-powered financial services.
According to a recent Prosper survey:
- Nearly 22% of credit union members said they would use agentic AI to pay bills, compared with 18% of U.S. adults overall.
- About 19% said they would use agentic AI to invest in stocks, bonds or cryptocurrency, compared with roughly 15% of the general population.
The findings suggest credit union members are more open than the broader public to using AI for financial management and investment activities, Prosper said.
A Strategic Priority
The analysis concluded that credit unions pursuing acquisitions should view integration as a strategic priority rather than an administrative task completed after a deal closes. Institutions should evaluate not only the systems used by acquisition targets but also whether those systems support a unified member experience and future AI capabilities.
“Credit unions have built their standing in this industry on trust,” Prosper said. “That trust is preserved or lost in the months following a merger. The institutions that get this right will be the ones that integrate well, not just the ones that acquired boldly.”
