Fintechs are focusing on the fundamental operational differences between credit unions and traditional banks as they develop member-focused, relationship-driven AI solutions. 

Credit unions “are member-owned, mission-driven institutions where trust, transparency and service quality are paramount,” Saahil Kamath, head of AI at fintech Eltropy, told FinAI News. “That changes how AI needs to be designed. …They need AI that understands their workflows, systems and member expectations.” 

Recognizing a “clear gap in the industry,” Eltropy has launched an agentic platform for credit unions to create, deploy and govern AI agents in a safe environment, Kamath said.  

The platform, launched March 1, produces agents that “take action in a reliable and compliant way,” Kamath said. It also addresses fragmented systems that have made automation difficult to scale for many credit unions. 

The platform enables credit unions and their fintech partners, not just Eltropy, to create tailored solutions, with capabilities including authentication, account servicing and end-to-end task completion, he said.  

Constant AI was the first fintech to develop an AI agent through the platform, according to a March 23 Constant release. The agent, called Nia, handles skip-a-pay requests, which are one of the most labor-intensive member interactions at credit unions, the release stated.  

Michigan State University Federal Credit Union, one of Constant AI’s partners, is among the first credit unions to deploy Nia, April Clobes, president of the $8 billion MSUFCU, stated in the release.  

Nia “helps simplify a complex process in channels our members are already comfortable using, while fitting into our existing systems and compliance framework,” she said.  

Different from banks 

In addition to operational differences, fintechs must account for the cultural differences between credit unions and banks, Eltropy’s Kamath said.  

“Credit unions prioritize relationships,” he said. “So, the goal of AI is not to replace human interaction, but to enhance it by handling the routine efficiently while preserving the human touch where it matters most.” 

Credit unions that have reported efficiencies with Eltropy’s AI conversation platform include:

• Cobalt Credit Union achieved 83% session containment rate; 
• APL Federal Credit Union cut delinquency rates by 20% and increased savings by 20%; and
• Centric Federal Credit Union reduced loan approval times by 95%. 

Fintech Kinective is also creating customized solutions for credit unions and community banks, Gordon Flammer, senior vice president of data activation, told FinAi News.  

“One [institution] may require much more modern, updated branches,” he said. “Another one is going to be focused more on digital and outbound marketing. Some of our clients do indirect lending, others do commercial lending.” 

Kinective’s credit union clients have posted the following efficiency gains:

• Launch Credit Union eliminated 60 days of manual labor annually and reported an 18% year-over-year increase in cross selling; and
• American Heritage Credit Union achieved $1 billion in asset growth over 18 months, with a 25% increase in cross-sell activity. 

Register here for the upcoming FinAi Lending Summit, set for Oct. 7-8 in Las Vegas.