Financial Literacy Month: 3 ways credit unions can use AI to promote financial literacy and inclusion

AI is ushering in a new era of possibility for financial literacy and inclusion. As credit unions embrace this transformative technology, they're discovering unprecedented ways to scale education and support for traditionally underserved communities. While recent studies show U.S. financial literacy hovering around 50%, AI-powered customer service is creating new opportunities to change this narrative.

April marks Financial Literacy Month, reminding credit unions of their opportunity to offer education on key financial concepts from budgeting and saving to retirement planning and beyond. But this critical information isn’t always easy to find. For example, vulnerable communities with limited access to desktop computers or who speak different languages than their credit union's support agents often find it difficult to identify and leverage the right resources.

As member-owned cooperatives, credit unions play a trusted and important part in helping members navigate the resources and services that promote financial literacy and inclusion. This holds especially true for communities that financial institutions have traditionally marginalized.

Of course, credit union leaders understandably question new technologies like AI and how they could help address this problem. After all, if trust forms the foundation upon which credit unions build relationships with members, they must adopt tools that support that trust. But AI isn’t just another technology—it’s the catalyst credit unions need to scale inclusion and transform financial literacy for every member. Here's how:

AI-powered virtual assistants (VAs) offer many useful capabilities for credit unions to promote financial literacy and inclusion. But first, what are they? Modern AI-powered virtual assistants do more than simply simulate conversation—they serve as digital financial guides, capable of understanding cultural context and providing personalized interactions and financial education. For example, a member could ask a VA, "How do I open a new checking account?" or "Where can I find information about new loans?" The VA would respond with relevant resources and instructions. The goal isn't to replace human representatives but to focus them on interactions where the human touch matters most.

With developments in AI, VAs can now understand and respond in several different languages, allowing members to communicate with their credit union in their native language. This capability can significantly enable stronger financial literacy promotion in communities that are traditionally burdened by language barriers.

Consider that a significant portion of a credit union's members speak Spanish, but it doesn't employ enough Spanish-speaking staff to effectively serve all of them. With a specially trained AI-powered Spanish VA, members receive 24/7 assistance in their language of choice, while the credit union's Spanish-speaking human representatives remain available to resolve higher-complexity issues.

AI-powered virtual assistants make offering member service to a diverse community in their native language easier than ever before, allowing even smaller credit union teams to provide multilingual support. Of course, true connection requires more than language translation. Credit unions that ensure AI-generated messages resonate culturally will reap the relational benefits. For example, if members of a specific community collaborate through advisory boards, credit unions can collect valuable insights to inform new VA responses that better support the needs of that community. In turn, credit unions drive stronger member experiences, and members feel supported with access to resources that will make them successful.

VAs provide an excellent way to offer multilingual support, but what happens when VAs can't handle the complex interactions that require a human agent? Traditionally, a member with a complex request would be transferred from the VA to a human agent and would need to repeat the request details in an entirely new channel. If the member must be transferred again, they would need to start over entirely and repeat their request for a third time. This repetition taxes members and creates significant barriers for those needing assistance.

With advancements in AI-powered customer interaction technology, context now transfers with the member. When an agent receives a transfer, they can instantly see AI-generated summaries of the previous interaction, regardless of whether it originated with a VA or another human agent. In turn, human agents receive the information they need to escalate the interaction without requesting repetitive details, and members don't dread calling for support.

Literacy starts with education, and education starts with access. When credit unions eliminate siloed channels and create access to seamless member support, they promote financial literacy in their community.

Both enhanced language abilities and channel-less architecture are proxies for deeper AI capabilities, helping credit unions more effectively meet their communities' needs. AI member interaction technology goes beyond managing requests and questions—it becomes a central support to building a community where all members feel truly valued and understood.

Gaps in financial literacy and inclusion won't disappear overnight. Promoting financial literacy and inclusion requires credit unions to monitor their members' evolving needs and proactively adapt. The value of AI-powered VAs extends beyond member communication. With advancements in Large Language Models, credit union leaders now use similar technology to analyze patterns in member behavior in order to identify and design services that reflect the real needs of the communities they serve.

Imagine asking a virtual assistant questions about entire segments of membership based on the bulk of recorded credit union-wide interactions with these segments, regardless of channel. Leaders can instantly get data-driven insights about their member service and identify opportunities to improve performance.

For instance, a credit union leader might learn that a significant percentage of their members use personal loans for immigration expenses. Based on this knowledge, they could retool their loan program and offer loans specifically designed for this use case.

Not only does this offer a more relevant loan profile to members, but it also decreases the likelihood of members resorting to predatory lenders outside the credit union system. It also helps people who are traditionally marginalized by financial institutions navigate the complex journey of immigration, all while improving financial literacy and stability.

Using AI to assess the unique needs of any membership base not only creates a stronger member experience—it also increases the likelihood that members can get the support they need, when and where they need it, allowing them to make the most informed financial decisions.

As we look beyond Financial Literacy Month, the opportunity is clear: AI doesn't represent just another technology tool—it creates a bridge to financial literacy and inclusion. For credit unions, it means using innovation to fulfill their foundational promise: ensuring every member has the knowledge and support they need to thrive financially.

The key to success lies in responsible implementation. Credit unions should ensure their AI solutions maintain proper guardrails around data privacy and security while delivering accurate, consistent information to members. This means choosing AI solutions that are specifically designed for financial services, with built-in compliance controls and the ability to provide trusted, pre-approved responses. Using AI to enhance member experience will not instantly put more money in member pockets. But when deployed responsibly, AI can educate, empower communities, and ensure credit unions are best positioned to fulfill their mission of financial empowerment for all members.