SCOTTSDALE, Ariz.--Credit unions have spent years worrying about interest rates, regulation and economic uncertainty. But a new report from Cornerstone Advisors suggests the more immediate threat may be something far less tangible: hesitation.
According to Cornerstone Advisors' new 6 Bold Moves in Banking report, based in part on findings from its 2026 What's Going On in Banking research, the institutions most likely to win over the next 12 to 18 months won't necessarily be the largest or those with the deepest technology budgets. Instead, they will be the ones willing to make decisive strategic choices while competitors continue studying, planning and delaying.
That message carries particular significance for credit unions. While fintech competition has been discussed for years, the report argues the pace of disruption has accelerated dramatically. Deposit challengers such as Chime and SoFi continue pulling away funding that once naturally flowed to traditional financial institutions, while generative AI is reshaping everything from product design to operations. At the same time, regulators have accelerated charter decisions and competition is expanding on multiple fronts.
The survey numbers underscore that concern. Eighty percent of bank and credit union executives now view big fintechs such as PayPal and Square as a significant competitive threat over the coming decade, up sharply from the prior year. Seventy percent now identify challenger banks such as Chime and Varo as major threats, compared with just 49% a year earlier.
"The speed of innovation has outpaced a lot of financial institutions," Chris Miller, managing director at Cornerstone Advisors, says in the report. Rather than attempting dozens of disconnected initiatives, he argues institutions need to make fewer, more coordinated bets that connect technology, marketing, operations and risk management.
That theme runs throughout the report, which was produced by Cornerstone Advisors and features research and commentary from managing director and chief research officer Ron Shevlin, founding partners Steve Williams and Terence Roche, partner Al Dominick, managing directors Karen Kost, Mary Eyre and John Meyer, director Elizabeth Gujral, senior director Mike Rempel and Miller.
One of the report's strongest messages is that strategy has become more about deciding what not to do than trying to compete everywhere. Steve Williams argues financial institutions no longer face one competitor but dozens—different rivals for deposits, payments, lending, wealth management and digital experiences. Successful organizations are becoming comfortable saying "no," concentrating capital where they can truly differentiate instead of chasing every fintech trend or assuming acquisitions alone will modernize their organizations.
Artificial intelligence represents perhaps the clearest example of the industry's accelerating pace. According to Cornerstone's research, 59% of credit unions had already deployed generative AI heading into 2026, while another 22% planned to invest or implement it during the year. Rather than viewing AI primarily as a tool for reducing headcount, Gujral argues institutions should see it as a way to expand employee capacity.
The report highlights Minnesota-based Magnifi Financial Credit Union, whose AI assistant "Maggie" searches more than 900 internal policies and reportedly saves employees up to 10 minutes each day. It also points to Financial Plus Credit Union in Michigan, where leaders describe their AI strategy as "crawl, walk, run," emphasizing that technology should free staff to spend more time serving members—not replace them.
The report also challenges long-held assumptions about mergers. Rather than viewing acquisitions primarily as balance-sheet expansion, Eyre contends they should become opportunities to redesign technology platforms, simplify product offerings, renegotiate vendor contracts and modernize operations. According to the report, technology simplification and vendor repricing can account for 25% to 40% of achievable merger cost savings, making operational redesign just as valuable as increased scale.
Ultimately, Cornerstone argues that culture—not technology—may determine which credit unions emerge stronger. Bureaucracy, slow decision-making and a reluctance to revisit outdated strategic plans are portrayed as greater long-term risks than any single competitor. As Shevlin concludes in the report's closing message, "Whatever you do in 2026, don't do nothing. Get up offa that thing and do something."
For credit unions, the report suggests, standing still has quietly become the industry's riskiest strategy.