Top five credit union stories from the year
The year showcased the credit union movement's commitment to innovation, member empowerment, and community impact. From groundbreaking lending programs to crisis response initiatives, credit unions demonstrated why they remain essential to the financial well-being of millions of Americans. Here are the five most impactful stories that defined the credit union industry this year.
A game-changing student lending program with zero delinquencies
Manchester Municipal Federal Credit Union in Connecticut achieved something remarkable: 14 years of student loan operations with zero delinquencies and zero charge-offs. The program serves municipal employees and their families, many of whom are first-generation college families struggling to afford higher education. By requiring immediate repayment instead of deferment, the credit union prevents the interest accumulation that often makes federal loans unmanageable.
As students go through the process of acquiring and repaying the loan, they also gain financial literacy skills that prove essential as they leave school. The program now holds approximately $3 million in student loans, with borrowers contributing an additional $1 million in other products and services.
Ent Credit Union empowers members through financial coaching and $700K in debt payoff
Ent Credit Union's financial coaching program helped members eliminate more than $700,000 in debt during the first half of the year alone. The Colorado-based institution has certified 140 employees through the Financial Counseling Certification Program, with about 95 currently active as coaches across its 60 branch locations and virtual platform.
The program uses a cohort-based training approach where staff members study together, creating a strong coaching culture throughout the organization. Financial coaches work one-on-one with members on budgeting, debt management, credit building, and savings, with 85% of referrals coming from everyday staff interactions rather than formal campaigns. The program's success extends beyond debt reduction to include improved job satisfaction among staff and lasting member relationships that generate referrals for mortgages, consumer loans, and financial literacy resources.
Credit unions deliver exceptional member experiences through intelligent AI
Credit unions rapidly adopted artificial intelligence applications that extend far beyond basic chatbots, with 66% now planning to leverage AI for credit decisioning. FORUM Credit Union in Indiana achieved 70% faster loan processing through AI systems that automate document review, auditing, calculation verification, and inconsistency flagging. Centris Federal Credit Union's AI auto loan underwriting grew automated decisions from 43% to 63%, generating more than 30% growth in indirect lending volume while maintaining credit quality.
The AI system's credit quality for approved loans proved more reliable than traditional scoring models, using enhanced data and mathematics to identify creditworthy candidates with thin credit files. Modern conversational AI platforms integrate with core banking systems to provide personalized financial guidance around the clock, analyzing member data instantly for balance information, loan status updates, and product recommendations.
Second-chance auto loans help credit-challenged members get back on the road
Credit unions nationwide created specialized auto loan programs for members with credit scores below 640 or no credit history, focusing on steady income rather than automated score thresholds. These programs replace algorithmic denials with case-by-case human judgment, examining why scores are low and incorporating rent or utility payment histories.
Built-in safeguards include loan caps, CARFAX vehicle reports, required insurance coverage, and mandatory financial counseling on budgeting and payment management. Many programs incentivize on-time payments through interest rate reductions: Valley Oak Credit Union and WyHy Federal Credit Union offer 0.25% APR drops every six months, up to a full 1% reduction over the loan term. Alive Credit Union provides up to $100 in annual cash rewards for prompt payments.
America's Credit Unions' Auto Lending Dashboard shows that credit unions maintain favorable median interest rates and loan delinquency rates compared to banks and auto financing shops for all borrowers with sub-660 credit scores. After one to two years of on-time payments, many participants see credit scores rise sufficiently to refinance on better terms.
Beyond fee waivers: How Keesler Federal redefined shutdown relief
When the federal government shut down, Mississippi's largest credit union created an automatic paycheck advance program rather than offering loans. Keesler Federal Credit Union's Paycheck Relief program advanced more than 5,000 paychecks totaling $6.5 million to its 1,710 enrolled federal employee members, with zero fees, zero interest, and no applications required. Members with direct deposit simply continued receiving paychecks as scheduled, with advances automatically repaid when federal back pay arrived.
The credit union doubled its annual food bank support from $50,000 to over $100,000, partnering with Feeding the Gulf Coast for a massive distribution event that served approximately 2,000 people from 400 to 500 families. Each family received between $75 and $100 worth of groceries after waiting in a line of vehicles that stretched more than three miles.
