BOSTON–Credit unions’ ability to compete in 2026 is increasingly tied to how effectively they deploy digital tools, including artificial intelligence, mobile banking and streamlined onboarding, according to a new report from PYMNTS and Velera.
The report, titled “Built to Lead or Losing Ground? AI, Mobile and the Member Retention Imperative for Credit Unions in 2026,” concludes that digital services are no longer a back-office function but are central to retaining members, attracting younger consumers and competing for small-business relationships, according to PYMNTS and Velera.
The analysis shows that top-performing credit unions are not necessarily the largest institutions, but those moving more aggressively to adopt AI, enhance mobile capabilities and invest in member-facing technology that improves ease of use and responsiveness. Those institutions are more likely to report membership growth, higher assets per member and increased investment in innovation, the report states.
Contrast Identified
By contrast, credit unions identified as being in an “emerging” tier are more likely to experience slower growth and, in some cases, declining membership, according to the findings.
The report emphasizes that the divide between leaders and laggards is driven less by technology spending alone and more by strategic alignment. Credit unions that align their digital roadmaps with member and small-business needs—and that leverage external partners to accelerate deployment—are better positioned for growth, PYMNTS and Velera report.
Key Findings
Among the key findings:
- Credit unions are increasingly using AI to play a larger role in members’ day-to-day financial decision-making, with conversational tools and AI-driven guidance emerging as important drivers of engagement and loyalty.
- Mid-sized institutions may have an advantage over larger peers, as agility and speed to market can outweigh scale in implementing new technologies.
- Many credit unions already have a strong digital foundation through mobile and online banking platforms, which can serve as a base for expanded capabilities and partnerships in the next phase of growth.
Practical Applications
The report also points to practical AI applications—such as chat support, personalized financial guidance and frictionless digital experiences—as a potential source of competitive advantage for both consumer and small-business banking.
The findings are based on two surveys conducted between October and December 2025, including responses from 500 credit union executives, 13,918 consumers and 2,474 small- to medium-sized businesses. The report uses an Innovation Readiness Index, scored from 0 to 100, to measure how closely credit union offerings align with member and business preferences, with top performers ranking in the highest quartile and emerging institutions in the lowest, according to PYMNTS and Velera.
