Recently, credit union executives and professionals from Forvis Mazars shared their insights on current trends and hot topics impacting the credit union sector. The roundtable discussion focused on emerging financial technologies (including artificial intelligence (AI) and stablecoin), operational/technology modernization, and current credit and portfolio conditions.
The interactive session also provided an opportunity to compare notes on how institutions are evaluating stablecoin and digital asset developments, how AI tools (especially enterprise copilots and more advanced “agentic” concepts) are being adopted with appropriate governance, and what leaders are seeing in loan portfolios as signs of softening, credit normalization, and renewed focus on underwriting discipline.
Below is a summary of these topics, allowing for ongoing considerations for credit union professionals.
Stablecoin: Steady & Strong Interest With Uneven Readiness
Participants described a steady increase in stablecoin-related outreach (webinars, vendor briefings, industry messaging) and acknowledged that leadership teams and boards are asking what it could mean for shares, payments, and member expectations. The prevailing posture was cautious: several institutions are monitoring developments closely rather than trying to be early adopters, with a view that adoption becomes more likely once regulatory expectations and operating models are clearer.
At the same time, some credit unions were referenced as planning earlier moves (such as experiments tied to core systems), suggesting that competitive differentiation may motivate a subset of institutions to move sooner.
A key theme was trust and distribution: even if stablecoin usage expands, members may be more willing to use a digital-dollar-like instrument if offered through their bank or credit union rather than through a standalone cryptocurrency platform. One institution described exploring partnership models (working with major payment networks or providers) rather than issuing a proprietary coin. Overall, a near-term focus on education, governance, and scenario planning (including potential balance-sheet impacts) rather than immediate launch decision making was the overarching theme for stablecoin.
AI in Credit Unions: Productivity & Workload Balance
AI use was described as moving rapidly from experimentation to daily utility, especially through enterprise copilots embedded in familiar tools. Practical examples included faster document and policy searching, drafting and summarizing content, and support for spreadsheet work and analysis. Several participants emphasized a preference for enterprise-grade tools over consumer chatbots because of the sensitivity of member and employee data and the need to control how information is accessed and retained.
In addition, challenges of defining what “AI” actually is in vendor products (distinguishing rules-based decision trees from predictive models that make recommendations), and from agentic systems that can initiate multistep workflows were noted. That distinction matters for model governance, explainability, and compliance.
There was also discussion of needing to inventory AI use cases, evaluate vendor practices, and implement governance aligned with external guidance (for example, agency expectations affecting mortgage-related activities) and emerging state-level requirements. Thus, the difficulty lies in shifting from “using AI” to “controlling AI” across vendors, departments, and data sources.
Operational & Technology Modernization
Beyond emerging tech, participants shared more traditional modernization initiatives with immediate member-experience implications. Examples included rebranding to support geographic expansion, expanding branch networks, bringing certain platforms or infrastructure back in-house to reduce latency after core conversions, and shifting rewards programs from third-party models to internally managed solutions. A recurring theme was that technology sourcing decisions (hosted versus on-premise, third-party versus in-house) are increasingly evaluated through the lens of performance, operational resilience, and cost.
The discussion also surfaced a common constraint. Even when a regulatory or strategic change is understood, operationalizing it can depend on card processors, core providers, and other vendors having the ability to implement the needed logic. Participants noted examples where vendors could not easily segment transactions or data in the way a rule required, forcing institutions to consider workaround options and member communication implications.
Based on these examples, credit unions can involve vendor management early, validate feasibility, and document contingency plans to help ease the operationalization process.
Credit Conditions & Renewed Underwriting Focus
Participants reported mixed but increasingly cautious views of credit trends. Several described softening in commercial portfolios, including concerns about underwriting quality and participation lending, alongside a sense that some conditions resemble earlier stress cycles (even if not at crisis levels).
Others noted that issues may appear as isolated “one-off” credits rather than broad deterioration, but that the severity of any given problem feels amplified because many teams have not dealt with meaningful losses in years. In consumer portfolios, increased auto charge-offs and normalization of collateral recovery values were discussed as ongoing realities, while residential real estate values were generally described as remaining a stabilizing factor (with the caveat that a broader housing shift would have systemwide implications).
Market-specific observations included slower absorption and longer hold times in certain speculative construction and commercial real estate segments, as well as isolated instances of distressed pricing in office properties.
A related takeaway was the value of institutional memory. Teams that lived through prior downturns described being more willing to challenge optimistic assumptions and push for prudent lending practices to avoid regulatory criticism and future remediation. The overarching message was to pair growth goals with disciplined underwriting, stronger monitoring of concentrations (including participations), and readiness to manage problem credits when they arise.
How Forvis Mazars Can Help
The roundtable reinforced that credit unions are balancing near-term operational execution with fast-moving technology and risk topics. Stablecoin and AI are drawing sustained attention, but most institutions are prioritizing education, governance, and vendor readiness over rapid deployment.
At the same time, leaders are watching credit trends closely, particularly commercial and participation exposures. while continuing to modernize infrastructure to improve member experience and resilience. A consistent throughline was preparedness: knowing what tools are in use, what risks are emerging, and what controls and playbooks are needed before market conditions force decisions.
Forvis Mazars is committed to supporting credit union leaders with current insights and opportunities for continued engagement. To learn more or to participate in future roundtables, please contact our team.