By Ray Birch
MADISON, Wis. — Credit unions are living through what Filene Research Institute describes as one of the most disruptive moments in modern payments — a rare collision of fast-moving technology, unpredictable regulation, and rapidly shifting consumer expectations.
For Filene Executive Vice President Christie Kimbell, this isn’t a temporary bump in the road. It’s a structural reset of how money moves — and how credit unions must think about their role in that movement.
“Payments didn’t change very much for a long time,” Kimbell said. “Now everything is happening at once.”
From Filene’s vantage point, credit unions are being pulled in three directions simultaneously:
- Technology is accelerating — including real-time payments, open banking, blockchain, tokenization, and AI-driven fraud
- Regulation is volatile — from stablecoin legislation like the GENIUS Act to proposals such as a 10% cap on credit-card interest rates
- Consumers expect seamless, instant, omni-channel money movement
Put together, Kimbell calls this a “perfect storm.”
“Members want to move money quickly — to pay in a store, pay online, send money to a friend, or pay bills — all without friction,” she said. “At the same time, regulation is swinging, and new technologies keep emerging. That creates real uncertainty for credit unions trying to decide where to place big bets.”
The stakes are high. Payments sit at the core of the credit union business model — shaping member engagement, data insights, and non-interest income through interchange.
Regulatory shifts alone could be seismic. Kimbell pointed to proposals such as the 10% cap on credit-card rates, which she said could materially reshape what products credit unions offer and what benefits members receive.
“If something like that were enacted, it would have huge implications for credit unions and for consumers,” she said.
While many trends feel fluid, Kimbell is confident about one thing: digital assets including stablecoins are here to stay.
“Digital assets” she said. “will continue to grow over time. So, a very solid bet for credit unions is building a tech stack that can accommodate digital assets and integrate them with core systems.”
This is not just about crypto. It’s about future-proofing payments infrastructure so credit unions can adapt as new rails emerge, Kimbell explained.
Can small credit unions keep up?
Kimbell acknowledged that smaller CUs may struggle to hire payments specialists or build capabilities in-house. But she doesn’t believe they’ll be left behind.
“Credit unions are really blessed with collaboration and partnership,” she said.
Solutions Underway
She cited major ecosystem players — including Visa, Velera, and TruStage — that are already working on solutions, negotiating with providers, and building frameworks that benefit the movement as a whole.
Filene has also convened industry leaders through initiatives such as its Stablecoins Summit, which brought together credit unions, fintechs, and payment providers to share knowledge and align on emerging risks and opportunities.
“The message to small credit unions is: you don’t have to be first, and you don’t have to build this yourself,” Kimbell said. “But you do need to ask your partners tough questions about their roadmaps and timelines.”
Her advice: push vendors for clarity, demand transparency, and align expectations now rather than reacting later.
“Digital assets are going to shape how people pay — regardless of your asset size,” she said. “Every credit union needs to understand what that means for them.”
Filene’s New ‘All Things Payments Center of Excellence’
To help credit unions navigate this turbulence, Filene has launched its All Things Payments Center of Excellence, a dedicated research hub focused exclusively on payments and money movement.
According to Filene’s announcement, the Center will provide:
- Actionable research
- Competitive benchmarking tools
- Strategic guidance
- Implementation roadmaps tailored for credit unions
Filene CEO Mark Meyer framed the mission saying, “No single credit union can solve the payments puzzle on their own.”
The Center is built around three pillars that Kimbell described as critical:
- Technology: understanding emerging rails, tokenization, real-time payments, and digital assets
- Regulation: tracking shifting rules and what they mean for credit unions
- Capabilities & providers: helping credit unions evaluate partners, tools, and payment strategies
All of this will be viewed through a consumer-first lens.
“If credit unions have limited dollars and time — which they do — the question becomes: what do members actually want, and how do we align our investments with that?” Kimbell said.
Filene Fellow Dr. Henry Kim, who will help guide the Center’s research agenda, said the goal is to “sort signal from noise” and translate complex trends — like real-time payments, stablecoins, and AI fraud — into practical steps.
Early Leaders In The Movement
Several credit unions have already signed on as founding sponsors of the Center, including:
- Corporate America CU
- Corporate Central CU
- Desert Financial CU
- EastRise CU
- WSECU
- SchoolsFirst FCU
- Municipal CU
- Lake Michigan CU
WSECU COO Paul Kirkbride underscored why this matters: “If credit unions are to remain relevant, we must lead in the fast-changing payments space.”
Risk — But Also Major Opportunity
Despite the disruption, Kimbell is optimistic.
“Yes, this is one of the most disruptive shifts in modern payments,” she said. “But disruption also creates opportunity.”
She sees AI — particularly in fraud detection and operations — as a potential equalizer that can help credit unions act with the speed and sophistication of much larger institutions.
“Payments are at the heart of what credit unions do,” Kimbell said. “If the technology and expectations around payments are changing, credit unions must change too.”
Filene’s goal, she added, is not simply CU survival — but leadership.
“We want credit unions to thrive, not just manage risk,” she said. “There is tremendous upside here for those willing to engage, experiment, and move forward thoughtfully.”