Credit Union Lending Is Getting More Complex. The Conversations Around It Need to Get Better

Guest Editorial by Angi Milano, Founder, Maven Advisory

Credit unions are under pressure to grow lending at a time when the margin for error is getting smaller.

Angi Milano, Founder, Maven Advisory.

Loan growth has slowed across much of the industry, credit performance is under more scrutiny, and members still expect faster, easier borrowing experiences. At the same time, lending teams are being asked to make decisions about automation, pricing, underwriting and AI without losing sight of risk.

That makes the question bigger than how to originate more loans.

The challenge is finding a way to grow responsibly, improve the lending experience and make better use of technology without adding more complexity. The numbers make clear how difficult that has become.

According to the NCUA, total loans outstanding across federally insured credit unions increased 4.6% year over year in the first quarter of 2026. But at the median credit union, loan growth was just 0.6%, and median loan growth was negative in 17 states plus Washington, D.C.

At the same time, the NCUA has called out declining loan performance as a supervisory concern, with delinquency and rolling 12-month loss rates reaching their highest levels in more than a decade.

So yes, credit unions still need to grow. They also need to be thoughtful about where that growth comes from, how much risk they take on to get it, and whether their lending operation can support it.

That makes the lending conversation very different from what it was a few years ago.

The Lending Conversation Needs to Move Past Talking Points

For years, financial institutions talked about digital transformation as if the phrase itself represented progress. In many cases, it did not. Credit unions added digital applications, new systems and more technology, while the underlying lending process remained complicated, manual and fragmented.

That is part of the challenge now. The industry has no shortage of technology. The harder question is whether that technology is helping credit unions make better lending decisions, fund loans faster, reduce manual work, price risk more effectively and create a better member experience.

That’s where the conversation needs to get specific. Where are members dropping out of the process? Where are manual handoffs slowing decisions or funding? Are lending policies aligned with the borrowers and products the credit union wants to grow? Can pricing adjust appropriately for risk? Where can AI solve a real operating problem, and where is it simply another tool layered onto an already complex process?

Those questions are much more useful than another conversation about transformation. They are also part of what makes the Lendtopia 2026 agenda interesting.

Lendtopia Is Focused on the Decisions Lenders are Making Right Now

Sync1 Systems is bringing more than 200 credit union lending professionals, decision-makers and executives together Sept. 21-23 at the JW Marriott Indianapolis for its annual Lendtopia conference.

Looking through this year’s agenda, what stands out to me is how closely the sessions line up with the decisions credit unions are already working through.

There are conversations around omnichannel growth, decisioning, policy matrices, auto funding and risk-based pricing.

There is a credit union industry panel designed to put practitioners into the conversation, along with a core systems roundtable featuring perspectives across Corelation, CU*Answers, DNA and Symitar.

AI also has a dedicated lending session. Credit unions don’t need another high-level conversation about whether AI will affect financial services. We are well past that point.

The useful conversation is where AI fits in the lending process. Can it shorten the time from application to funding, reduce manual work or help employees make better decisions? What oversight does it require, and what does fair lending look like when AI becomes part of the process? Most importantly, is the use case strong enough to justify the investment?

Those are the questions that move AI from an industry talking point to something credit unions can evaluate as part of their lending strategy.

Some of the Best Answers Will Not Come from the Stage

One of the things I value most about industry events is what happens outside the formal sessions.

The person next to you at lunch tells you they just replaced their LOS. Someone at breakfast is dealing with the same indirect lending issue you are. Another credit union tried the integration you are considering and can tell you exactly what went well and what they would do differently.

Those conversations carry real weight.

Peer feedback is often one of the strongest forms of proof. A vendor can explain what a system is designed to do, but another credit union can tell you what it was like to implement, where the challenges were and whether the results matched the promise.

That matters because lending decisions are highly dependent on context. A strategy that works for a $10 billion credit union may make little sense for a $500 million institution. Field of membership, staffing, existing technology, risk tolerance and product mix all shape what will work.

There may not be one right answer, but hearing from peers who have already made the decision, tested the technology or worked through the same problem can make the next decision a lot clearer.

That is a big part of the value of Lendtopia. The agenda matters, but so do the conversations around it.

Lending Strategy Should Drive the Technology Decisions

The technology conversation in lending can get complicated quickly because there are so many decisions competing for attention at once. LOS capabilities, integrations, automation, AI, decisioning and data all matter, but none of them should be the starting point.

The starting point should be the lending strategy.

Where does the credit union want to grow? Which member segments or loan products represent the biggest opportunity? Where is the current process creating delays, unnecessary manual work or a poor member experience? And what is preventing the lending team from capturing more of that opportunity today?

A credit union trying to increase consumer loan volume may need something very different from one focused on improving pull-through, expanding indirect lending or making underwriting more efficient. The right technology depends on the problem being solved and the outcome the credit union is trying to achieve.

That is also why the mix of conversations at Lendtopia matters. Decisioning, risk-based pricing, AI, core technology and growth strategy are not separate issues. Each one affects how a credit union originates, evaluates and ultimately funds loans.

The crucial question is “What are we trying to accomplish, and will this help us get there?”

Lendtopia 2026 takes place Sept. 21-23, 2026, at the JW Marriott Indianapolis.