Credit unions see threats in Fed shakeup, nonbank IPOs

Research finds executives are under pressure from nonbank firms and concerned about identity theft in 2026

Published on Feb. 19, 2026

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American Banker's 2026 Predictions report reveals that credit union leaders are worried about various threats to their industry, including the growing presence of nonbank firms, concerns about the Federal Reserve's independence, and the rise of identity theft. The report highlights key findings from a survey of 174 banking professionals across different sectors.

Why it matters

The report sheds light on the challenges credit unions are facing as they navigate a rapidly evolving financial services landscape. The findings suggest that credit unions are feeling the pressure from nonbank competitors and are concerned about the potential impact of political influence on the Federal Reserve's decision-making. Additionally, the prevalence of identity theft is a major worry for credit union executives, as it poses a significant threat to their operations.

The details

The report found that more than half (52%) of credit unions see identity theft as a major threat to their business. Nonbank entities, such as payments firms and mortgage companies, are also gaining traction in the financial services space, posing a challenge to banks and credit unions. Additionally, a sizable share of credit unions (61%) have lost faith in the ability of the Federal Reserve Board of Directors to operate independently of political affiliations.

  • The survey was conducted online during October and November of 2025.

The players

American Banker

A leading publication covering the banking and financial services industry.

Credit unions

Financial cooperatives owned by their members, which are facing various threats according to the report.

Nonbank firms

Companies outside the traditional banking sector, such as payments firms and mortgage companies, that are gaining traction in the financial services space and posing a challenge to banks and credit unions.

Federal Reserve Board of Directors

The governing body of the Federal Reserve system, which a sizable share of credit unions have grown distrustful of in terms of its ability to act without partisanship.

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What they’re saying

“By investing in advanced AI technologies, we're giving members greater convenience, faster answers and more control without compromising the trusted relationships we've built over decades.”

— Steve O'Connell, President, North Island Credit Union (American Banker)

“Financial institutions — and especially their fraud and compliance teams — cannot afford to treat this as merely a check fraud problem. It is an upstream identity compromise with downstream impact across every product line: personal checking, SMB accounts, digital lending [and] even tax prep partnerships.”

— David Maimon, Head of fraud insights, SentiLink (American Banker)

“We're really excited about this service. It's a pain point we have heard over and over again from our users traveling, working or living in the U.S. Once operational in the U.S., Bunq will be able to offer credit cards to eligible E.U. citizens, who often do not have a U.S. credit score, by leveraging their European credit history.”

— Joe Wilson, Chief evangelist, Bunq (American Banker)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This report highlights the growing challenges credit unions face in an evolving financial services landscape, including the threat of identity theft, the rise of nonbank competitors, and concerns about the independence of the Federal Reserve. Credit unions must adapt and innovate to stay competitive and protect their members' interests.