Credit union input on the use of artificial intelligence (AI) provided an important perspective during Wednesday’s Congressional Hispanic Caucus (CHC) roundtable, which focused on how AI can transform housing and financial services.

Bethpage Federal Credit Union uses AI to “reimagine and strengthen” how it delivers member value, Senior Vice President/Chief Transformation Officer Musadiq Hassanali shared at the event hosted by CHC Chairman Elect Rep. Adriano Espaillat, D-N.Y. America’s Credit Unions also participated.  

“These types of technologies can’t be seen merely as a lever to maximize efficiency or profit, but rather act as a catalyst to expand the breadth and depth of services and products that we provide,” Hassanali said, adding that the credit union saw an immediate 10% in approvals for consumer loans once they implemented AI use. 

Bethpage, located on Long Island, carefully implemented AI with input from many areas, as well as guardrails and other internal controls.

“Under the right conditions, AI can help us transcend the limitations of traditional underwriting, deepen our understanding of member needs, and more nimbly respond to the financial aspirations of populations who have been historically underserved,” Hassanali said.

The roundtable followed Tuesday’s release of a comprehensive report on AI recommendations and policy proposals from the Bipartisan House Task Force on AI, including a section on financial services.

The financial services section contains several recommendations that echo America’s Credit Unions’ position on AI, including:

• Foster an environment where financial services firms can responsibly adopt the benefits of AI technology;
• Encourage and resource regulators to increase their expertise with AI;
• Maintain consumer and investor protections in the use of AI in the financial services and housing sectors;
• Consider the merits of regulatory “sandboxes” that could allow regulators to experiment with AI applications;
• Support a principles-based regulatory approach that can accommodate rapid technological changes; and 
• Ensure that regulations do not impede small firms from adopting AI tools.

Great Lakes Credit Union Chief Operating Officer Elizabeth Osborne testified before the House Financial Services Committee in July, outlining how AI helps credit unions enhance service to members at economies of scale that might not otherwise be possible.

America’s Credit Unions Transition Board Secretary Karen Harbin also testified before the committee in July, sharing how an AI partnership has helped Commonwealth Credit Union approve more than 21,000 loans to traditionally underserved populations in the past five years.