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Credit Union Fall 2021 Magazine - Northern Hills Federal Credit Union uses AI to boost its loan portfolio, says CEO Floyd Rummel III.

Incorporating AI into Strategic Roadmaps Of Credit Unions



Aug 26, 2021

Artificial intelligence allows credit unions of all sizes to harness data and machine learning for competitive advantage.

Your best application for artificial intelligence (AI) might be finding opportunities you never knew existed.

Credit unions are exploring AI-based technology solutions to:

  • Identify worthy loan applicants who might otherwise face rejection.

  • Boost loan volume with automated decisioning.

  • Improve security through voice recognition.

  • Integrate voice, video, and smart speaker channels.

  • Predict potential risk within loan portfolios.

  • Explore the possibilities hidden within their data.

The projects are varied, but they share a common goal: to go beyond business as usual while gaining the AI experience required to remain competitive.

Getting started

AI is a branch of computer science that blends computers’ data capabilities with human-like intelligence to complete specific tasks. AI solutions often include “machine learning” algorithms to capture specific data from interacting with human users, which enables an AI tool to improve over time.

John Best, CEO of Best Innovation Group, advises credit unions to take advantage of their “superpower of collaboration” to explore AI through credit union service organizations and joint projects with financial technology (fintech) companies.

He says credit unions should approach AI with the same intensity allocated to a core processing conversion. The first step is strengthening data analytics and developing data leaders.

“If your data analytics people don’t already have a seat at the table, you’re behind,” Best says. “This is a culture shift in the organization.”

He adds that credit unions must also think about what’s possible with AI.

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