Bits and Banks

In this episode of Bits & Banks, Jason Pendergist, Chief Credit and Lending Officer at Kitsap Credit Union, joined Aditya Khandekar of Corridor Platforms to unpack how AI can sharpen lending decisions, from looking beyond credit scores to connecting underwriting, portfolio performance, and pricing.

Key ideas:

• Credit scores only tell part of the story — Probability of default needs to be considered alongside loss given default. Income stability, loan-to-value, vehicle depreciation, and dealer quality all help reveal whether a loan makes sense for the institution and the member.
• Scoring a loan isn’t the same as automating a decision — End-to-end decisioning brings together credit assessment, deal structure, pricing, and ongoing performance analysis. Generating a score is just one step.
• Portfolio performance should shape the next decision — Reviewing losses, early delinquency, and missed lending opportunities helps teams refine credit policies and determine where pricing needs to change.
• Human expertise moves toward the bigger picture — Jason described how automation frees experienced underwriters to assess overall strategy, while preserving a second look for existing members whose applications would otherwise be declined.
• Make the right loan for the member — Qualifying for a larger loan doesn’t always make it a good financial choice. Responsible lending includes difficult conversations about affordability, negative equity, and sustainable borrowing.
• Specialize in lending, diversify the balance sheet — Loan participations let institutions sell excess production and buy assets others originate well. Jason sees potential for tokenization to simplify those transfers, while recognizing that industry adoption remains early.

On the latest Bits & Banks, Brynn Ammon, President of Credit Union Solutions at Jack Henry, unpacked how agentic AI is reshaping core banking, from Symitar's role as the system of record to where human oversight still has to sit as agents start working across systems.

Key ideas:

• Match autonomy to risk, not convenience — Marketing copy and PowerPoint updates can run fully automated, but credit decisioning, wire transfers, and fraud review still require a human to sign off on the recommended action before it moves.
• Identity is the real access control — As agents start working across systems of record, Jack Henry is building tight RBAC around agent identities, so every action can be traced back to who told the agent what to do once a regulator asks.
• Governance built the consulting practice — Clients watched Jack Henry roll out AI internally under a "responsibly bold and balanced" approach and asked for help doing the same, turning internal experience into a formal AI consulting arm.
• The core stays the lighthouse — Symitar remains the system of record even as agents span core, LOS, and AML/KYC systems; opening data through API and MCP access happens inside guardrails, not instead of them.
• Guardrails get finished in production — Some control gaps only surface once something fails live, so production trace and continuous audit matter as much as the controls set up in advance.

On the latest Bits & Banks, Adam Koishor, Chief Strategy Officer at DORT Financial Credit Union, unpacked the differentiation gap facing credit unions where identical products, rates, and tech stacks make it hard for members to see why they should choose you over any other institution.

Key ideas:

• Start partnerships with a member need — DORT’s collaboration with Spiral began as a simple way for members to support local causes, then expanded into savings goals and financial wellness, proving that fintech works best when tied to a bigger relationship story.
• Let data surface the next offer — By building analytics that recognize life events and cash-flow patterns, DORT can spot HELOC or auto-loan readiness earlier and make the next step easier for the member.
• Rates win transactions; values win relationships — Competitive pricing and strong technology are table stakes; the real edge is an emotional connection around what the credit union stands for, especially as younger members pick institutions that align with their values.
• Design for deeper engagement — Beyond products, members want trust, shared values, and financial support that give them a reason to stay, not just a reason to apply.
• Invest for what’s ahead — As product parity grows, credit unions that pair competitive tech and rates with purpose-driven experiences will be the ones that win long-term loyalty.