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CUNA Environmental Scan Report 2014-15Top Industry Trends -- Part 1

by Donya Parrish, MCUN

What an exciting time to be involved with a credit union! The latest CUNA Environmental Scan (no, not a paper on the acid levels of your parking lot soil, but a high level overview and snapshot of the environment of the credit union industry) notes that “After years of recession-induced cost-cutting, it’s time to position your credit union for growth.”

This is similar to the message I heard from many of the CEOs I have spoken to this year. They feel like it is time to stop being reactive (to over-regulation, high delinquency, poor economic conditions, etc.) and to start working proactively moving their credit union forward. This can only benefit your membership, and in turn, the communities you serve.

So, what is going on that might affect your direction and decisions? These are five of the top 10 trends the report lists to influence the next 12 to 18 months. (Note: I will cover the other 5 in the July 23 blog.)

  1. Mobile Payments -- This technology is being embraced at a rate of growth of 68% annually, so your credit union should capitalize on emerging technologies and focus on the three pillars of payments success: real-time, mobile, and social payment capabilities.

  2. Mobile Banking -- It is said that three out of every five customer contacts occur through mobile, mainly due to the ease of use, reliability, and speed. What does your credit union offer on this platform for information or transactions?

  3. EMV Card Standard -- Security breaches have been in the news since December and consumers are nervous. With an October 2015 liability-transfer date looming, many credit unions are starting to consider the investment in chip technology.

  4. Strong Lending -- Now that consumers are realizing the recession is over and confidence is improving, lending for autos, credit cards and mortgages is increasing. While Montana has lagged the rest of the country in loan growth rates, it is expected to continue to be strong.

  5. Operating Ratios -- As lending and economic conditions improve, asset yields will as well. They were at record lows in 2013. Rising interest rates are also expected, so earnings may be boosted.

Watch the July 23 blog for discussion of the remaining five trends. If you are interested in borrowing a copy of this year’s CUNA Environmental Scan (or E-Scan for short) book, or watching the accompanying DVD, contact us.

Donya Parrish is the VP-Dues Based Services for the Montana Credit Union Network. She would welcome any questions or comments on this material. You can email Donya or call her at 800-745-5546, ext. 122.

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