Lending Has Changed, Our Mission Hasn't

Insights from Melissa Pomeroy, CCUA's EVP and Chief Operating Officer

Technology is transforming the lending process, but the credit union difference remains rooted in people, trust, and purpose.

Last July, I wrote that lending is where the credit union promise comes to life. A year later, that feels even more true, and the work behind it feels even more complex.

Members are navigating affordability pressures, higher everyday costs, and uncertainty about what comes next. At the same time, credit unions are balancing funding costs, liquidity, uneven loan demand, increasing fraud, credit quality concerns, and evolving regulatory expectations. NCUA has identified balance-sheet management and lending as a supervisory priority for 2026, noting that loan performance remains at its weakest point in more than a decade; even as total credit union lending continues to grow.

What's different today isn't just the pressure—it's the pace of change and the number of tools available to help credit unions respond.

Today's fintech platforms can simplify applications, automate document collection, verify information, reduce manual steps, identify fraud, and deliver lending decisions more quickly. Artificial intelligence can help uncover process bottlenecks, organize and summarize information, support underwriting teams, and identify members who may benefit from timely, relevant lending solutions.

For many small and mid-sized credit unions, these capabilities are no longer out of reach. The right partners can help modernize the lending experience without replacing every system, building a large technology team, or sacrificing the personal service that makes credit unions different.

But speed is not the same as strategy.

A faster lending decision is only better if it is accurate, fair, explainable, and aligned with the member's best interest. AI and third-party lending solutions raise important questions about data privacy, bias, vendor oversight, security, and accountability. In lending, the answer cannot simply be, "The model decided." Credit unions must still understand the decision, explain it, monitor it, and ultimately own it. That responsibility isn't a disadvantage—it's part of the credit union difference.

Fintechs can offer convenience. AI can identify patterns. But credit unions bring context, trust, and relationships that often span years—and sometimes generations. Technology can make the process faster; the cooperative model makes the outcome more meaningful.

That's why lending remains so critical to credit union growth. Every well-structured loan creates more than income. It helps a member purchase a home, buy a reliable vehicle, consolidate high-cost debt, manage an unexpected expense, or grow a small business. It strengthens relationships during some of life's most important financial moments and keeps the credit union relevant throughout a member's financial journey.

The goal isn't to become a fintech. It's to use fintech and AI to become a stronger credit union—faster where speed matters, more informed where data helps, and more human where members need guidance.

Our mission hasn't changed: help members move forward. And when credit unions do that well, they move forward too.