The news: Credit unions are moving beyond AI experimentation and beginning to deploy AI-powered member services at scale, per a new report from PYMNTS Intelligence and Velera. 

Zooming in: Top-tier credit unions—which the report defines as larger institutions—expect consumer-facing AI initiatives to accelerate across core banking services, including:

• AI chat support: 78% expect to provide this tool by 2032, up from 22% now.
• AI-powered financial advice: 67% plan to offer it by 2032, more than tripling from 22% today.
• AI-enabled payments: 57% of top-tier credit unions expect to offer them by 2032, versus 20% who currently offer them.

The PYMNTS report also finds that consumers are most interested in practical AI tools that help them manage their finances—such as budgeting, bill management, spending insights, and understanding financial products. 

Why it matters: AI is quickly becoming a competitive differentiator in retail financial services. As member expectations for AI-powered experiences grow, credit unions that deploy these capabilities effectively will be better positioned to attract and retain members. Those that delay will lose ground to larger institutions that are already bringing AI-enabled experiences to market.

AI can also help credit unions tackle one of their biggest long-term growth challenges: attracting younger members. Gen Zers and millennials expect personalized, digital-first financial experiences. AI-powered tools for budgeting, financial guidance, and customer service meet that demand. 

EMARKETER data reinforces the opportunity: Gen Z banking consumers are more than twice as likely as Gen Xers and five times as likely as baby boomers to want AI to provide financial recommendations, per an October 2025 survey. As credit unions look to lower the average age of their membership, this kind of offering could help them better compete with digital counterparts.

Implications for financial providers: AI gives credit unions an opportunity to modernize how they compete. Historically, they have differentiated on rates, service, and community ties rather than digital innovation. As AI becomes more accessible, that dynamic could shift.

Community banks and other regional institutions will also need to accelerate AI adoption as personalized digital experiences become table stakes—especially if credit unions gain an edge.

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