2026 Economy: What It Means for Members

Takeaways: Mixed Economic Outlook in 2026

• AI will be a major force shaping BECU's future, helping to deliver personalized financial guidance, remove "no-joy" work and expand access, while requiring thoughtful reskilling and support for employees.
• Affordability challenges are intensifying for Washington residents, with rising costs, slower income growth and a widening K-shaped economy putting pressure on lower- and middle-income members.
• Economic indicators show a mixed but stabilizing outlook, with strong markets and resilient consumer spending alongside uneven job growth and softening housing conditions.
• BECU is actively expanding access and financial support, opening new Neighborhood Financial Centers, adding Spanish-language ATM prompts and continuing programs like the First-Time Homebuyer Grant and loan repricing.
• Serving communities remains central to BECU's mission, with millions invested in nonprofits, tens of thousands of volunteer hours and continued commitment to supporting members' financial health, despite economic uncertainty.

Reflections on the 2026 Economic Outlook Forum

Recently, I had the opportunity to join regional business and community leaders at the Puget Sound Business Journal's 2026 Economic Outlook Forum. These conversations are always energizing for me. They offer a chance to step back, assess where our region is headed, and reflect on what that means for our members and the communities we serve.

I take seriously the responsibility of ensuring this cooperative leans fully into its purpose: Improving the financial well-being and resilience of our 1.5 million members.

Below are a few reflections from the forum about what's expected for the economy, what gives me optimism and how we're preparing BECU and our members for the year ahead.

Members and Employees Feeling Squeezed

We are seeing a true K-shaped economy: Higher-income households continue to spend and invest, while lower- and middle-income households are pulling back.

Even though financial markets reached historic highs last year, inflation is the reality most people live with day to day. Many of our friends, families and employees feel crushed by higher costs. Collectively, we have to focus on helping the folks who are toward the bottom of that "K."

AI's Growing Impact on Our Workforce and Member Experience

Generative AI continues reshaping our economy at remarkable speed. Here in the Puget Sound region, innovation is accelerating across industries, from startups to global companies.

The impact on how we work will be significant. At BECU, we're embracing AI as a tool that helps us:

• Accelerate digital transformation.
• Deliver personalized, real-time financial guidance.
• Support members' financial health.
• Reduce routine, repetitive work so employees can focus on higher-value tasks.

Much like wearable technology transformed how we monitor our physical health, AI is poised to transform financial health. We're laying the foundation for what I sometimes call the "self-driving car" of personal finance, providing guidance at the moment a member needs it.

Our contact center teams are already using a generative AI tool, which helps them surface the right information quickly so they can focus on supporting our members. This is only the beginning.

As AI evolves, retraining and reskilling will be essential. Done responsibly, AI can democratize access to financial services and empower employees to do the most fulfilling work in support of our members.

Housing Affordability Continues To Challenge Members and Employees

Housing affordability remains a major struggle for Washington residents. Low supply, high prices, elevated interest rates and uneven wage growth have priced everyday workers out of the market. Many workers can't afford to pay rent or buy homes here.

This creates another layer of challenges for workers who have to be on-site, but who can't afford to live near their workplaces.

Reasons for Optimism in the Year Ahead

Even with these challenges, there are meaningful signs of resilience. Markets posted strong gains and holiday spending increased in 2025.

In Washington, new housing development rose 4.3%, and manufacturing jobs showed modest growth. Unemployment remains relatively low, inflation is easing and innovation is boosting productivity.

There is uncertainty, but also momentum. BECU remains focused on helping members navigate both.

How BECU Is Supporting Members Through Economic Shifts

Our commitment to member financial well-being is the foundation of everything we do.

• Expanding access: In 2025, we open opened five new Neighborhood Financial Centers and added Spanish-language prompts to all 256 BECU ATMs.
• First-time homebuyer grants: The First-Time Homebuyer Grant program continues to make homeownership more attainable. In 2025, we granted $2 million dollars, supporting 265 mortgages. Since 2018, we granted $13.6 million dollars and helped 1,950 members.
• Loan reprice program: 2025 marked 20 years of our loan reprice program, which automatically lowers rates for eligible members, saving members a combined $2.2 million across 46,603 loans in 2025, and saving $29 million since its launch.
• Investing in communities: This is core to who we are as a member-owned cooperative. In 2025, we donated $8.1 million to community partners, our employees volunteered nearly 26,000 hours and we gave $450,000 to member-nominated nonprofits through the People Helping People Awards.

Moving Forward Together

We are entering 2026 with both challenges and opportunities ahead. But with 90 years of cooperative strength behind us, BECU is well-positioned to help our members navigate whatever comes next.

Our focus remains clear: Expanding access, increasing affordability, supporting financial health and helping people build the futures they want for themselves and their families.

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