The Governmental Affairs Conference (GAC) is always a key moment for the credit union movement to rally around advocacy. But, as the industry enters a new strategic phase, this year’s conversations went well beyond policy.
Credit unions are thinking more intentionally about scale, leadership succession, technology modernization, and how to compete as the industry evolves faster than ever. Many of the discussions reflected a growing recognition that the next 3–5 years will require more proactive strategy than incremental change.
Here are five themes that came up repeatedly at GAC 2026.
1. Credit Union M&A Strategy: Many CEOs Want to Be Buyers, Not Sellers
Consolidation has been an ongoing trend across financial services, but the tone of the conversation at GAC suggests a subtle shift in mindset.
Rather than viewing mergers as a defensive move, several credit union leaders emphasized the importance of being positioned to acquire, rather than be acquired.
That level of readiness requires more than identifying potential targets. Institutions are increasingly thinking about:
- Balance sheet strength and capital planning
- Technology compatibility and integration capabilities
- Leadership and cultural alignment
- Strategic clarity around growth markets
As investment demands grow for digital infrastructure, data capabilities, and payments innovation, scale is becoming a strategic advantage rather than a defensive option.
2. Regulatory Uncertainty Is Driving Strategic Conversations Around Payments
Unsurprisingly, legislative and regulatory developments remained a major focus at GAC.
Several issues surfaced repeatedly in discussions with credit union leaders:
- The Credit Card Competition Act (CCCA) and potential impacts on interchange economics
- The Illinois interchange ruling and its implications for payments networks
- Ongoing policy debates around interest rate caps
These developments are prompting many institutions to reexamine how regulatory changes could influence payments strategy, card economics, and long-term revenue models.
At the same time, these discussions reinforced the continued importance of industry advocacy to ensure policymakers understand the role credit unions play in supporting financial access and community development.
3. AI in Credit Unions: High Interest, But Most Are Still in Exploration Mode
Artificial intelligence was one of the most widely discussed technology topics throughout the conference.
However, the tone was notably pragmatic.
Most credit unions appear to be in an early-stage learning and evaluation phase, exploring potential use cases while developing the governance frameworks needed to manage risk.
Key concerns that surfaced frequently included:
- Data privacy and governance
- Cybersecurity and fraud implications
- Integration with existing core and data systems
- Developing clear AI strategy and oversight
While the potential of AI is widely recognized, many leaders acknowledged that the real challenge is preparing their data environments to support it.
As highlighted in SRM’s 2026 Industry Outlook Report, financial institutions often have access to significant data assets but struggle to fully leverage them due to fragmented systems and governance challenges.
4. Digital Transformation Requires a Strategy Before the Technology
Digital transformation remains a top priority for credit unions, but the conversation is evolving.
Rather than simply evaluating new vendors or solutions, many leaders are recognizing the need to start with a clear strategic roadmap before selecting technology.
Common priorities discussed at GAC included:
- Breaking down data silos across systems
- Modernizing legacy platforms and vendor relationships
- Improving operational efficiency
- Creating more flexible technology architectures that support innovation
The institutions making the most progress appear to be those aligning technology investments with broader strategic priorities such as growth, payments innovation, and member experience.
5. Fintech Partnerships Are Becoming a Core Part of Credit Union Strategy
Another recurring theme throughout GAC was the growing role of fintech partnerships.
Rather than trying to build every capability internally, many credit unions are exploring partnerships to accelerate innovation and expand their offerings.
These partnerships are helping institutions move faster in areas such as:
- Digital member experiences
- Payments innovation
- Operational automation
- Data analytics and AI capabilities
New collaborative initiatives, including systemwide AI platforms designed specifically for credit unions, also demonstrate how the movement is experimenting with shared innovation models.
For many leaders, the question is no longer whether to partner with fintechs, but how to do so while maintaining strong governance and preserving the member relationship.
Strategic Clarity Will Define the Next Chapter for Credit Unions
If there was one consistent takeaway from GAC this year, it was that the pace of change across financial services continues to accelerate.
Between evolving regulation, increasing competition, technology innovation, and industry consolidation, credit union leaders are recognizing the need for more deliberate strategic planning.
The institutions best positioned for the future will likely be those that:
- Invest in data and AI readiness
- Modernize technology infrastructure
- Build thoughtful fintech partnerships
- Develop clear long-term growth strategies
These themes and the broader forces driving them are explored further in SRM’s new Industry Outlook: Structural Forces Reshaping the Financial Services Industry in 2026 and Beyond, which examines the key economic, regulatory, and technology trends shaping the future of financial institutions.
For credit union leaders, the challenge (and opportunity) will be turning these insights into action as they prepare their institutions for the next era of growth and competition.
Posted by Joanna Radke and Tiffany Burton on March 6, 2026.
