AVENTURA, Fla.—Credit union leaders should focus on balancing innovation with trust as artificial intelligence, faster payments, digital assets and fraud threats reshape the payments landscape, executives from Visa and Border Federal Credit Union said during a panel discussion at the Defense Credit Union Council’s annual conference.
The discussion featured Pace Bradshaw, senior vice president and head of U.S. Government Engagement for Visa, and Maria Martinez, president and CEO of Border Federal Credit Union in El Paso, Texas. It was moderated by Jason Stverak, chief advocacy officer with the Defense Credit Union Council.
Here is some of what was discussed:
Stverak: What do you think CU leaders should be paying the closest attention to right now in payments?
Bradshaw: We’re seeing a whole host of transformation happening. You’ve probably heard quite a bit about AI, and that’s having a huge impact on payments and business. We’re also seeing new payment technologies, including stablecoins. At the end of the day, it’s about making sure you’re listening to your members and staying focused on what they need. Consumers and members want fast payments that are safe and secure. AI brings a whole bunch of benefits, but there have always been bad actors out there.
Stverak: If a board turns to you as a CEO, what are you doing to ensure the boards understand what’s coming?
Martinez: We serve 13 Texas counties, the majority of them in the border area. There are a lot of very different needs. We also serve many underserved people and have a branch inside Fort Bliss Air Force Base. Our board has to understand how our members are thinking. Members are becoming very smart. We had a member who had done their homework with AI and was citing regulations to us. Our members are getting savvy. They understand what we’re doing as a credit union. We have to make sure we have systems in place that members can use and that they are protected.
Stverak: There is a changing revenue stream for Visa and Mastercard due to interchange changes. Peer-to-peer payments mean a loss of interchange. How does Visa position itself to take advantage of that while ensuring there is also a revenue source in place?
Bradshaw: We have more than 3,000 credit union clients. I think you hit the nail on the head. What is it that your members and consumers want? We spend a lot of time investing in all the different ways consumers and businesses can move money. At the core of all of that is trust and security. We continue investing in technologies to ensure payments are safe and secure. Whether it’s AI or nation-state threats, there are a lot of bad actors out there, and we’re constantly working to make sure however someone uses the Visa network to transmit money, it’s done in a safe and secure way while providing benefits to all of our clients.
Stverak: Border FCU is incredibly trusted in your communities. How are you responding to the fact that about a third of members have some sort of digital asset? How are you positioning yourself so members can get it all from you?
Martinez: Members want to trust us. Whether it’s a wire transfer or a debit card, they want confidence in what we provide. Whatever we offer has to be something that lets them sleep at night. Trust is very important, and you have to build that with technology but also in person. We have branches, but there are generations that don’t want to use them. They don’t want to call someone; they just want to use their mobile app. You have to have personnel in your branches who are willing to serve those members and are knowledgeable enough to support the systems we have.
Some of the things we run across are that we’re in a remote location and sometimes don’t have connectivity. You need to be able to offer other services as backups.
Stverak: If you had a magic wand and could put conversations about payments on every credit union board agenda, what would you include?
Bradshaw: First of all, have someone who is accountable for developing the payment strategy. What are your members really looking for? What are the trends? Be mindful that there is a lot of change happening. You don’t want to be the first to move into every new space. Be thoughtful about your decisions. Your members trust you. They don’t expect you to have the next greatest thing immediately. Put yourself in a place where you have a solid 12-month plan.
Martinez: For us, the top thing is preventing fraud. Trust is one of the things we focus on when training new employees.
Stverak: What are you most optimistic about in terms of change in payments?
Bradshaw: There is a lot of economic and geopolitical uncertainty, but the American consumer and small business are resilient. You can focus on the scary things, or you can take a step back and see there are positives.
Martinez: Faster payments. Our members are looking for that.
