How Teachers Federal Credit Union Is Rewriting Its Playbook With AI Automation

Teachers Federal Credit Union, one of the largest U.S. credit unions with more than $9.7 billion in assets and over 460,000 members, is using artificial intelligence (AI) and automation to modernize the way it does business.

The credit union has automated processes across 16 business functions, leading to improvements in efficiency, scalability and member experience, with the support of SS&C Blue Prism and Infosys.

The credit union, whose rare open charter means anyone can join — not just teachers — saw an opportunity to use intelligent automation (IA) to support national expansion while enhancing operational workflows. IA blends AI and robotic process automation (RPA) to automate complex business processes in a simpler and more adaptive way.

“Because we adopted IA earlier than other credit unions, we have a competitive advantage,” Teachers Federal Credit Union Chief Technology Officer Suresh Renganathan said in a case study by SS&C Blue Prism.

“Automation aligns seamlessly with our broader business strategy by facilitating change, enabling scalability and delivering operational efficiency. IA supports our commitment to provide exceptional member services while managing costs effectively.”

Teachers is not alone in recognizing the value of innovation, and even smaller credit unions are in the game, according to a May 2025 PYMNTS Intelligence report, “Credit Union Innovation Readiness: The Smallest Step It Up.”

“Among credit unions, innovation with financial products and services is no longer the domain of just the largest and most well-resourced institutions,” the report said. “A fundamental shift is underway, with even the smallest credit unions accelerating their digital transformation to meet members’ evolving expectations.”

Credit unions used to be “cautious followers” of banks, but not anymore. Only 15% of credit unions with less than $500 million in assets are lagging in innovation, down from 55% in a single year. “The smallest credit unions have ceased falling behind and started to keep pace.”

Further, the report showed that 83% more credit unions with assets between $500 million and $1 billion are offering real-time payments year over year. Among credit unions with more than $5 billion in assets, 57% have started offering AI chatbots or AI-powered customer service.

“Credit unions of all sizes are increasing their product offerings to meet members’ evolving expectations,” according to the report.

Read more: Credit Union Innovation Readiness: The Smallest Step It Up

Processing Loan Applications 50% Faster

Teachers implemented an IA platform and selected “automation champions” from each business unit to provide cross-functional input and ensure successful adoption.

This approach led to the deployment of digital workers across key areas such as fraud detection, loan services, and credit and risk, according to the credit union.

The initiative’s goal was not simply to implement automation for the sake of innovation, but to design it with measurable impact in mind.

The automation team defined the qualitative and quantitative metrics each bot automation will provide to the business. These metrics included cost savings, hours saved, volume analysis, and click reduction, all of which were embedded into the bots during development.

Teachers then tracked and visualized these KPIs in a dashboard that helps promote transparency, find successes and encourage broader adoption.

As a result, Teachers Federal Credit Union can now process loan applications and other essential transactions 50% faster. Digital workers help the credit union run “lights-out,” providing uninterrupted service to members even outside of regular business hours.

This means members can receive support and complete transactions 24/7 — far beyond the availability of the contact center or physical branches.

Fraud detection capabilities have also improved.

By using IA to trace IP addresses and implement machine learning and optical character recognition (OCR) technologies, Teachers can identify and respond to suspicious activity faster than before. This supports a safer banking experience for members while reducing strain on staff.

Overall, the digital workers have saved Teachers’ employees from performing over 8 million manual clicks, contributing to 13,250 days given back to the business.

Freed from repetitive, low-value tasks, employees can now focus on high-impact initiatives that improve the member experience and drive innovation.

Looking ahead, Teachers is exploring the use of AI and predictive analytics to complement its automation strategy. This next phase aims to deliver more innovative, personalized solutions to members and further improve employee productivity.

See also: From Mainframes to Microservices: Cloud Migration Ushers In New Era for Financial Services

Read more: Nine Payments Execs Weigh In on the Impact of Value-Added Services on Growth

Also read: Payments Execs on Agentic AI: ‘The Back Office Will Never Be the Same’

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