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2026 Strategic Planning Demands Innovative Ideas

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By Devin Hughes

SVP Lender Partnerships
LendKey

Against a backdrop of decreasing interest rates, emerging competitors, and federal reforms that upend old certainties, the stakes for credit unions heading into their 2026 planning sessions are as high as they have been in years. These pressures have revealed both vulnerabilities and strengths within the movement, rewarding those ready to test new models and rethink what it means to deliver real value for their members.

Loan Participations: Unlocking Scale and Flexibility


Loan participations have emerged as a frontline growth engine at a time when traditional lending faces mounting challenges. Credit unions using participation strategies are forging alliances, reaching new borrower demographics, and better managing their balance sheets to mitigate risk while expanding capacity.

Recent data underscores the urgency. 

Credit union loan growth slowed to just 2.8% in 2024, well below the historical 7% average, due to high interest rates and liquidity constraints. However, institutions actively engaged in loan participations are weathering these headwinds more effectively. 

The participation model tackles two main challenges. First, it helps credit unions manage liquidity issues, which have been especially tough in recent years. Credit unions now hold 14.2% of the consumer loan market, down from a record 15.0%. Second, participations let institutions share risk at a time when it costs $442 to gain each new member, and nearly one in four new members leave within the first year.2

As regulations shift and economic uncertainty persists, sharing exposure through multi-institutional loan pools enables credit unions to meet borrower needs without taking excessive individual or concentration risk. This collaborative approach is proving essential for institutions seeking to maintain ample lending capacity while staying competitive in volatile market conditions. 

Education Lending: Meeting Demand Where Federal Programs Fall Short


Education lending is undergoing seismic shifts at the Federal level, creating significant opportunities for forward-thinking credit unions. Federal cuts in the “Big, Beautiful Bill” to student loan programs beginning in 2026 will push families into uncharted territory.

The numbers tell a compelling story. 

Private student loan originations surged 70% between 2010 and 2018, while new federal loans fell 25% during the same period, outpacing mortgages, credit cards, and auto loans. This trend is set to accelerate even more as federal aid retracts even further in covering rising education costs, particularly for graduate and professional programs (the most attractive borrower profiles within education lending).3 

Current market conditions reveal both opportunity and urgency. Credit union members hold approximately $430 billion in outstanding student loan debt from other lenders, representing 26% of the national total. Yet credit unions hold less than 1% of student loans in their portfolios, suggesting massive untapped potential. 

Credit unions stepping into this market are targeting a smart demographic: borrowers pursuing professional and graduate degrees who typically have strong credit profiles, reliable co-signers, and solid future earning potential. With flexible federal repayment programs disappearing, credit unions can offer cost-effective alternatives like fixed-rate plans, and deferment programs tailored for people launching their careers.

The most successful institutions in this space aren’t just offering loans, they’re building comprehensive education lending ecosystems. Some credit unions are rolling out scholarships, financial education resources, and strategic partnerships with universities, transforming themselves from transactional lenders into trusted financial partners. For credit unions looking to enter quickly without building infrastructure from scratch, partnering with established fintech platforms can provide immediate access to competitive products and streamlined origination processes. This approach builds member loyalty at pivotal life moments when families are making critical financial decisions that can last decades. 

And the competitive urgency is real because other lenders are actively recruiting your members right now. 

Why direct them to competitors for education financing when you could deepen those relationships instead? With millions of students enrolled in higher education programs and costs continuing to climb, credit unions that move decisively on education lending will capture significant market share as federal options shrink. The window of opportunity is wide open, but it won’t stay that way indefinitely. 

This is a defining time. 

As credit unions look ahead to 2026, they are preparing for more than just another fiscal year. Growth will depend on adaptability, collaboration, and innovation with a clear purpose. Loan participations, education lending, and digital transformation focused on members are not just new opportunities, they show how powerful and flexible the cooperative model can be when used well. 

Data shows the gap is growing between credit unions that simply react and those that take the lead. Planning now will shape that outcome. 

The real challenge is to make planning sessions into action plans that build momentum. With rates changing quickly, competition increasing, and members wanting more personal financial advice, the strongest credit unions will use partnerships, data, and technology to make a bigger difference. This is more than a chance to protect stability; it is an opportunity to show new leadership in the credit union movement. 

The coming year will reward those who act quickly, take bold steps, and keep their strategies focused on the mission that makes the cooperative system unique

To learn more or connect with LendKey Technologies, Inc, visit their website.

About the Author:

Devin Hughes
SVP Lender Partnerships
LendKey

A ten+ year veteran of LendKey, Devin leads direction and growth for ALIRO, the company’s innovative loan trading network that seamlessly enables financial institutions and Fintechs to buy, sell and broker loans. Devin is dedicated to creating sustainable and scalable networked lending programs across all asset classes by leveraging best in class technology and winning partnerships between hundreds of financial institutions and marketplace lenders. Devin also leads LendKey’s lender partnerships team, where he helps clients to execute profitable digital lending and capital distribution strategies. A seasoned business development leader, Devin previously drove partnerships and growth for an education technology company and currently acts as advisor to several Fintechs. Devin holds a degree in Finance with a focus in Entrepreneurship from the Foster School of Business at the University of Washington.

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Fintech Partnerships Without Compromise: Managing Risks as You Innovate

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By Cassie Schock

Partner
de Risk Partners

The New Reality for Credit Unions

Credit unions are under pressure to keep pace with digital transformation. Members now expect seamless digital payments, faster lending decisions, and personalized financial tools. Fintech partnerships have emerged as the fastest way to deliver these innovations without building everything in-house.

While fintechs bring speed and creativity, they also bring new categories of risk. Vendor oversight, data security, regulatory compliance, and member trust are all on the line. For credit unions, the challenge is clear: how to innovate without compromise.

Managing Compliance in Partnerships

Every fintech collaboration introduces responsibilities. Even when a fintech provides the technology, the credit union remains accountable to regulators. That means:

  • Vendor due diligence: verifying a fintech’s compliance controls, financial stability, and track record.
  • Data privacy and security: ensuring sensitive member information is safeguarded.
  • Regulatory alignment: meeting expectations of the NCUA, CFPB, and state regulators across products that may blur the lines between traditional and emerging financial services.
  • Operational resilience: preparing contingency plans if a fintech experiences downtime, legal issues, or reputational harm.

Without a structured framework, these risks can outweigh the benefits of innovation.

Best Practices for Risk-Ready Innovation

1. Strong governance
Policies for evaluating, approving, and monitoring fintech partnerships should live at the board and senior management level. This ensures fintech collaboration is part of the credit union’s risk appetite framework.

2. Layered due diligence
Go beyond standard vendor questionnaires. Review the fintech’s compliance culture, sanctions screening, fraud monitoring, and incident response plan. This depth of review protects members.

3. Ongoing oversight
Partnerships cannot be “set it and forget it.” Credit unions should review fintech partners annually, test controls, and escalate concerns. Tools for compliance automation and third-party monitoring can reduce effort while increasing transparency.

4. Align with member trust
Communicating the steps your credit union takes to vet fintech partners reinforces that innovation is being delivered responsibly.

Turning Risk into Advantage

When managed well, fintech partnerships can become a competitive differentiator. Credit unions that demonstrate both innovation and discipline stand out to regulators, fintechs, and members.

Some fintechs prefer working with credit unions that show strong compliance leadership, because it gives their products credibility. This is where collaboration becomes a true advantage, credit unions provide trust, and fintechs provide tools.

Final Thoughts

Innovation does not require choosing between speed and safety. With the right governance, due diligence, and oversight, credit unions can build fintech partnerships that expand possibilities without compromising compliance.

The future of credit unions will be defined not just by what services they offer, but by how responsibly they deliver them.

To learn more or connect with de Risk Partners, visit their website.

About the Author:

Cassie Schock
Partner
de Risk Partners

Cassie Schock is a fractional Chief Compliance Officer and Partner at de Risk Partners, where she helps credit unions and community banks design exam-ready compliance programs that scale with innovation.

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Smarter Workflows, Seamless Journeys: Credit Unions’ Digital Advantage

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By Justin Hayes

Client-Partner Success Manager
ASAPP Financial Technology

Credit unions have always stood apart from the big banks by focusing on what matters most, people. Members aren’t treated as transactions or account numbers; they are individuals with unique goals and evolving needs. But as members’ expectations rise, due to generational shifts in member base, life milestones and technology reshapes financial services, maintaining this connection requires more than tradition. It requires innovation designed to keep people engaged, supported, and loyal at every stage of their journey.

Credit unions have always stood apart from larger institutions by focusing on what matters most, people. Members are not treated as transactions or account numbers; they are individuals with unique goals, and evolving needs. But as member expectations rise, driven by generational shifts, community demographics changing, and advances in technology, maintaining this connection requires more than tradition and local charm. It demands innovation that keeps members engaged, supported, and loyal at every stage of their journey.

In today’s competitive market, loyalty has become the true differentiator. It is no longer earned solely through branch interactions or local ties. Members now expect seamless, personalized experiences across every channel, whether opening an account online, applying for a loan on their phone, or meeting with a branch advisor. The institutions that succeed will be those that combine their relationship-first culture with digital capabilities that make every interaction relevant, convenient, and personal. Rather than trying to match the largest banks on scale, credit unions and regional banks can lean on technology to strengthen what already sets them apart, trusted relationships that last.

Three Digital Enablers of Engagement and Growth

  1. Integrated Origination + Onboarding
    The relationship begins the moment someone applies for a new account or service. Too often, that experience feels disconnected starting online, stalling mid-way, and requiring a branch visit to complete. By integrating origination and onboarding across in-branch, online, and mobile channels, institutions can make that first experience consistent and effortless. Automating the onboarding process for members, creating fluid journeys and workflows, with tasks, checklists, and status alerts ensure nothing falls through the cracks. With automated tasks and real-time visibility, staff maintain a full view of each member, enabling timely, personalized follow-ups that set the tone for loyalty. 
  1. Multilingual Digital Lending
    Communities across North America are increasingly diverse, and financial institutions must reflect that reality. Offering lending solutions in multiple languages is more than a convenience, it’s a commitment to inclusion. With multilingual digital lending capabilities, individuals can begin, pause, and complete applications in the branch channels. This builds confidence, improves completion rates, and ensures more members feel recognized and supported.
  2. Smarter Workflows for Auto Loan Engagement
    For many households, an auto loan may be the first or only relationship with a financial institution. Without thoughtful engagement, these single product relationships are at risk of ending there. Automated workflows make it possible to identify these opportunities early, reach out with personalized messages, and create simple pathways to deepen the relationship, whether through renewals, cross-sell offers, or financial education. By proactively engaging, institutions can turn one-time borrowers into long-term relationships.

All of this underscores why these capabilities matter now more than ever. Across North America, credit unions are demonstrating how an investment in an omnichannel platform can deliver measurable results, stronger adoption of digital tools, higher engagement rates, and more efficient and strategic operations. At the same time, these institutions are navigating the same challenges: competing with larger banks and fintechs while striving to remain the financial partner of choice in their communities. The opportunity is clear that credit unions are uniquely positioned to turn technology into a loyalty engine, ensuring people feel known, valued, and supported in ways that larger institutions struggle to match.

Ultimately, the goal is to leverage technology strategically to build long term loyalty and trust. This isn’t about software alone, it’s about relationships. The Credit Unions that will succeed will be those that use technology as an enabler of trust: reducing friction, creating meaningful touchpoints, and empowering staff to focus on conversations instead of transactions.

In the North American financial landscape where consumers are often treated like data points, credit unions have the chance to stand apart. By investing in technology that offers all in one features supporting: digital origination, multilingual lending, and intelligent workflows, and more, they can deliver experiences that remind people why they chose a community focused institution in the first place, and why they’ll stay.

Because in the end, loyalty isn’t about products or rates. It’s about making sure every member feels like more than an account number.

To learn more or connect with ASAPP Financial Technology, visit Website

About the Author:

Justin Hayes
Client-Partner Success Manager
ASAPP Financial Technology

Justin Hayes is a financial technology leader with over 15 years of experience driving digital transformation across the financial services industry. He specializes in helping institutions enhance member engagement, strengthen cyberfraud prevention, and deliver innovative digital solutions that fuel growth and efficiency.