GenAI and Credit Unions: How to Get Started

Generative AI (GenAI) is increasingly becoming a focus in financial services. While the idea of incorporating AI may seem overwhelming due to concerns about cost and complexity, taking small, strategic steps can make adoption more approachable.

According to a 2024 report by Cornerstone Advisors, just 13% of community-based financial institutions have deployed AI technologies in their credit and lending processes, despite the fact that 80% of respondents believed that AI technologies can and will improve the credit and lending processes.

For credit unions, GenAI offers valuable opportunities to improve member engagement, streamline operations, and provide personalized services. However, the cost of implementing AI can be a significant concern, especially for smaller credit unions. Prioritizing AI investments that show clear, measurable returns can help offset these expenses, making it feasible to begin with lower-cost solutions and scale as budgets allow.

Lay the Foundation with Training

The first step to adopting GenAI is building foundational knowledge. Credit unions can start by exploring accessible resources like online courses (Coursera, edX, NAFCU), industry-specific webinars, or AI guides provided by organizations such as America’s Credit Unions or NCUA. These tools can help leadership and frontline staff understand GenAI’s capabilities—like data analysis, automated responses, and predictive insights. By fostering a shared understanding, teams are better equipped to leverage GenAI’s potential while addressing its limitations responsibly.

Partnering with AI experts or consultants to deliver workshops can also clarify the technology’s practical applications and address any concerns, building confidence as GenAI tools are introduced.

Start with Customer Service Enhancements

A practical starting point for GenAI is in customer service. While AI-powered chatbots and virtual assistants are common tools for handling routine member inquiries—like balance checks or loan information—24/7, they are just one way AI can improve service availability and reduce strain on staff.

AI can also enhance customer service by analyzing member interactions to identify patterns and anticipate needs. For instance, AI-driven sentiment analysis can help staff understand member emotions during calls or messages, enabling more empathetic and tailored responses. Additionally, AI tools for predictive analytics allow credit unions to anticipate member needs and provide personalized recommendations. Other applications include automated email responses, predictive call routing, and advanced virtual assistants, which ensure members receive timely and accurate support.

By beginning with simple use cases and expanding to these advanced features, credit unions can gauge member satisfaction, refine AI models, and continuously improve their service capabilities.

Integrate AI into Member Engagement

AI can transform member engagement by analyzing individual behaviors and tailoring service recommendations. This personalized approach not only boosts satisfaction but also strengthens loyalty. Integrating GenAI within mobile apps or online banking platforms creates more touchpoints where members feel seen and valued based on their unique needs.

Starting with member engagement tools—such as personalized alerts or customized financial advice—can demonstrate quick wins and lay a foundation for expanded AI use.

Establish an AI Ethics Framework

Implementing GenAI responsibly requires clear guidelines on data privacy, transparency, and security. An AI ethics framework outlines acceptable data use, sets security protocols, and ensures that members are informed when interacting with AI. Regular audits and transparent disclosures strengthen trust, reinforcing the credit union’s ethical commitment.

This proactive approach helps credit unions remain compliant and safeguard member data, while building the trust needed for successful GenAI integration.

Measure, Refine, and Scale

Effective GenAI integration involves continuous monitoring and adaptation. Establish metrics to track key outcomes, such as response times and member satisfaction, and encourage feedback from staff and members alike. This approach allows for ongoing improvements, helping credit unions to refine AI performance and scale responsibly.

Regular assessment of AI-driven solutions ensures alignment with strategic goals, paving the way for a credit union that leverages technology to enhance member experiences.

Partnering for AI Integration

By adopting these steps, credit unions can make GenAI a practical part of their operations, creating smoother workflows and fostering more meaningful connections with members. To support credit unions on this journey, your League offers access to several advanced AI-powered solutions that simplify adoption and deliver measurable benefits.

Here are three AI-driven tools available through Leverage.

1. Zest AI: Known for its AI-powered lending solutions, Zest AI helps credit unions improve approval rates and decision-making efficiency, supporting inclusive lending and risk management.

2. Eltropy: Eltropy’s Digital Conversations Platform leverages AI to facilitate seamless, efficient member communications across channels, boosting productivity and enhancing the member experience. 

3. Gupshup: Gupshup offers advanced AI-powered conversational tools, including chatbots and intelligent virtual assistants. These tools provide 24/7 support, handling routine inquiries like balance checks or loan information while reducing call center strain. With multilingual support and integration across popular communication platforms, Gupshup enables credit unions to deliver personalized, consistent member experiences.

These accessible, AI-driven resources enable credit unions in Virginia to enhance their operations, build member loyalty, and confidently move forward. The League remains committed to supporting credit unions through each phase of their AI adoption journey, providing expertise, partnerships, and a trusted network to help credit unions reach their goals.