Community Bankers and Credit Unions Embrace AI in 2025
A recent survey has revealed that community bankers had the greatest share of respondents who said spending remained the same, while credit unions reported the largest share of slightly increased spending of less than 10%. Looking at the data broken out by department, it was found that increases significantly outweighed decreases in various sectors such as wealth management/investment banking, corporate/commercial, retail/SBB, compliance, and payments.
Banks and credit unions alike are placing big bets on AI as the technology becomes more widely accessible. They are aiming to overhaul legacy systems and develop modern product offerings. Brendan Coughlin, president of Citizens Financial Group, shared in an interview with American Banker that the bank’s three-year, $300 million “Reimagine the Bank” overhaul campaign is heavily focused on using AI to boost efficiency across the organization.
“The technology is in a spot at the moment where it’s not hopes and dreams. It’s here and present right now, and we’re leveraging it,” Coughlin said. “We’re going to invest about $300 million in incremental technology capital over three years, with the goal of having an exit run rate impact of $450 million in earnings value creation by Q4 2028.”
