By W.B. King
As Samaha & Associates CEO Sabeh Samaha sees it, artificial intelligence (AI), machine learning (ML) and robotic process automation (RPA) are ever-evolving technological advancements with far-reaching merits that are significantly changing back office and member-facing user experiences, as well as C-Level decision-making processes.
“Over the years, these technologies morphed into neural networks allowing financial institutions (FIs) to quickly and accurately analyze large datasets that were collected but otherwise siloed,” noted Samaha. He co-authored the white paper, The Future of AI and Credit Unions: Determining Applications, Objectives and Benefits, with Managing Consultant Adam Denbo and Senior Consultants Steven Uhrman and James Huaman. “As a result, AI, ML and RPA gave rise to predictive analytics and its many applications.”
For the white paper, Denbo defined AI, ML and RPA as technologies that enable systems to learn from data, identify patterns, and make decisions with minimal human intervention. “In the credit union industry, specifically, AI, ML and RPA applications include predictive analytics for risk management, automated customer service chatbots, personalized marketing, and fraud detection, among other critical tasks,” Denbo shared.
In the white paper, the authors posit: How do these variables translate to adoption rates in the credit union industry? The multi-tiered answer to this question is the thesis of this white paper, Uhrman explained, adding that the white paper investigates credit union AI, ML and RPA use cases as well as provides insights from fintechs driving the next iteration of this technological movement.
To this end, the white paper addresses five leading segments facing the credit union industry in 2025 and beyond:
1. Enhanced Member Service
2. Fraud Detection and Risk Management
3. Loan Underwriting and Processing
4. Personalized Member Experience
5. Operational Efficiency
An Innovation Driver
Due to big data and cloud computing, the way in which FIs develop banking services for consumers has forever changed, the white paper stated. “The antiquated chatbots of yesteryear have been replaced by AI/ML and AI-powered RPA-driven virtual assistants that are advancing with each user experience, while offering fraud detection, and other critical safeguards, in real-time,” said Huaman. “The AI/ML platform is literally changing minute to minute—a moving target requiring skilled markspersons.”
Determining when an organization is ready to deploy next-generation AI, ML and RPA strategies depend on a host of factors, the white paper noted. This especially rings true for credit unions of varying asset classes that may or may not have internal IT departments equipped for such an undertaking, Denbo said. Watching from the sidelines with hopes of being a fast follower is not a winning strategy.
“Falling behind this technology curve, when this curve is an exponential curve, is dangerous. It becomes exponentially harder to catch up,” noted Karan Kashyap, CEO and co-founder of the Boston, Mass.-based Posh AI, which has over 100 FI clients. “AI/ML is poised to become integral to the credit union industry, driving innovation in member services, operational efficiency, and risk management.”
Along with expert insights from Kashyap and his colleague, Matt McEachern, Posh AI co-founder and CTO, the white paper also features data and research from numerous research reports, including Info-Tech Research Group’s AI Trends 2025: Four Key AI Trends Affecting CIOs.
Among Info-Tech report takeaways was that 41% of respondents said that an AI strategy is being developed or will be developed soon, whereas only 26% said that there is no specific AI strategy, but that AI will be part of its IT and business strategies moving forward. Among the reasons for the latter finding is that business and technical challenges present barriers to successfully deploying and adopting AI initiatives. “Lack of skills and AI governance are the most difficult challenges,” the report stated. “Having the proper data platform and selecting the right AI use case to pursue were also noted as significant challenges.”
Making Members Feel Valued and Understood
The credit union ethos of “people helping people” was founded on trust and personal service, the Samaha team stated. For many executives operating in the credit union space, AI, ML and RPA were initially perceived as threats to the noted credit union foundational cornerstones, said Uhrman. “But today, these next-generation technologies are revolutionizing member services in credit unions in several important ways,” he continued.
“By analyzing data, AI/ML tailors services to individual members, offering personalized product recommendations and financial advice, which makes members feel valued and understood.”
According to McEachern, integrating AI/ML can enhance member experiences by automating routine tasks, thus allowing staff to focus on personalized member interactions. “For instance, AI-driven assistants can manage common member inquiries, providing immediate responses and freeing up human agents for more complex issues,” noted McEachern. “This synergy ensures members receive efficient service without sacrificing the personal touch where it matters.”
A Worthwhile Investment
As credit union executives look to 2025 and beyond, the Samaha team said they should expect that AI, ML and RPA will continue to transform the industry. Personalized and efficient services will become the norm, improving member loyalty and satisfaction. Automation will further reduce operational costs and further efficiency, Denbo noted, adding that predictive analytics will become increasingly sophisticated, aiding in better decision-making and risk management.
“To succeed in this ever-expanding space, credit unions must continue to innovate by offering new products and services powered by AI, ML and RPA,” Huaman said. “While there are certain challenges to adopting these technologies, the benefits far outweigh the drawbacks, making it a worthwhile investment for credit unions of all sizes and the members they proudly serve,” Samaha added.
Samaha & Associates’ white paper, The Future of AI and Credit Unions: Determining Applications, Objectives and Benefits, is available for download.