The National Credit Union Administration reports that as of the end of 2023, there were 4,604 federally insured credit unions in the United States with 139.3 million members.

Credit unions are member-owned organizations that primarily rely on deposits to fund lending. Strong deposit growth will help guarantee that credit unions continue to invest in their members and maintain long-term financial stability, as credit union borrowing rates are frequently more favorable than those of commercial banks.

Despite a 4.1% increase in total assets across federally insured credit unions in 2023, many credit unions still have low core deposits, partly due to members burning up savings they accumulated during previous pandemic years.

Simultaneously, customers have never had it so easy to compare and find better deposit rates. Credit unions must develop strategies to manage their own risks and the financial security of their members while also maintaining sufficient liquidity and staying competitive in the face of continuously high interest rates set by the Fed and ongoing financial strain experienced by consumers.

Will credit union executives be able to use artificial intelligence (AI), the hottest term of the last year, to find fresh ways to increase deposits and enhance loan growth?

Data is where it all starts.

Finding opportunities that are hidden: How do credit unions find untapped potential? Consider current members who may, for example, have financial ties to other entities. Can you provide a competitive product for this member and assist them in refinancing their current loan if they currently have one at another institution? Can you set yourself out from the competition and offer a more comprehensive and customized solution to satisfy their budgetary requirements?

Identifying the right prospects: In order to increase deposits, credit unions must determine how to most effectively identify and target new potential members. Imagine being able to more effectively target the appropriate customer groups for your institution by having access to information about their financial potential (estimated income and deposits they have at other banks, for example).

Using automation to generate results: What are some effective ways for credit unions to automate their data-driven marketing campaigns? Understanding is a terrific place to start. By turning insights into actions and putting the institutions in touch with possible new deposits and cross-selling possibilities, automated marketing solutions may assist take this a step further.

Credit unions may visually compare their risk indicators and financial health to other credit unions with just a press of a button by using tools like Autopilot from Bond.AI, a fintech start-up that I advise. Even if this information is already in the public domain, compiling it and organizing it into a format that is easy to read and comprehend takes effort.

In addition to lowering uncertainty and simplifying laborious data collection processes, intelligent targeting will significantly raise member satisfaction and allow credit unions to expand their revenue streams. Credit unions are a wonderful alternative to larger banks and are the preferred financial institution in many rural towns. However, these credit unions do more than merely make money transfers possible. They are ingrained in the communities they serve and are owned by their members as financial cooperatives. They serve as a community's heart and soul in many ways.

AI is gradually altering the way that labor is done, even if it might not affect what a credit union does. However, the goal should not be limited to job automation and human replacement; it should also include finding new possibilities and fostering resilience. In comparison to those who uphold the status quo, those who can use AI to provide value for their members and translate insights into actions will stand to gain more from the technology.

I can look forward to an AI-powered future rather than a snarky chatbot.