PALM DESERT, Calif.–The balancing act that is at the heart of a “central tension” in credit unions as they seek to maintain their historical differentiation while embracing change was the subject of a panel discussion here.
The panel discussion during the REACH 2025 event, titled “Built to Last: Honoring Our Legacy, Shaping the Future,” was led by Power and Light Collaborative CEO Samantha Paxson.
Panelists included Sam Tate, COO of First City Credit Union; April Remnant, CEO of County Schools Federal Credit Union, and Todd Clark, president and COO of InvestiFi.
Paxson addressed the industry’s central tension: “how credit unions can embrace disruptive technology without sacrificing the decades of member trust and personalized service that define the cooperative model,” according to the California, Nevada and Utah leagues, which hosted the REACH meeting.
Strategies for Leverage
The leagues said the session offered strategies for leveraging innovation to strengthen the member relationship in an increasingly digital world, particularly in artificial intelligence and embedded finance, and further discussed shifting the industry’s perception of AI.
Instead of viewing AI purely as a tool for efficiency or cost reduction, the panel argued it must be deployed as an enhancer of human connection, the panelists suggested.
“Credit union leaders often talk about AI replacing a teller, but the real power is in AI empowering the human connection,” the leagues said of the panel discussion. “If AI can handle 90% of routine queries and detect potential financial distress in credit union members’ spending patterns, it frees up the best people to have high-value, meaningful conversations. These are the kind of conversations that truly change members’ lives and build loyalty.”
New Research Presented
The panel also presented new consumer research indicating that members appreciate digital self-service for simple tasks, but they increasingly expect personalized guidance and proactive financial insights, a need only met by advanced, data-driven automation,” the leagues stated.
“Tate noted that this approach directly addresses the rising regulatory pressure and market forces to manage credit risk, as early detection powered by AI allows credit unions to intervene with targeted support and education before delinquencies escalate,” according to the leagues.
Competing With Fintech
The conversation shifted to how credit unions can compete against agile fintechs that “embed” financial services into daily consumer life, the leagues reported. The report added that Clark, bringing a CUSO perspective, emphasized the need to use open banking and API integrations to show up in members’ everyday moments.
“The panel advocated for a strategy of partnerships over purchase, urging leaders to collaborate strategically with third-party providers rather than attempting to build every new capability internally,” according to the leagues. “This approach allows credit unions to integrate seamlessly into non-financial applications, like providing a loan offer directly at the point of sale for a used car, or embedding financial wellness tools within an employer’s benefits portal. This — all while maintaining trusted branding and compliant oversight.”
Making the Connection
Paxson said strategic partnerships are the connection for smaller and mid-sized credit unions to acquire the sophistication needed to compete with national banks and digital giants without ceding their unique identity, according to the leagues.
“Acknowledging the persistent financial pressures, digital competition, and acute workforce challenges, the discussion moved toward practical leadership solutions,” the leagues said. “Short-term economic headwinds, while painful, shouldn’t deter digital investments. The panel offered attendees practical frameworks for evaluating new technology investments against the criteria of member financial outcome and institutional integrity.
Reminder Offered
“Paxson reminded leaders that a credit union’s greatest strength lies in its mission,” the leagues further reported. “The legacy of the credit union movement isn’t just about low rates. It’s about trust. In an era of automated, faceless finance, that human-centered foundation is the greatest competitive advantage.”
