AnalyticsInformation collection featuring common database, one-time data entry, and auto updateFlow and access to information, including a capability to upload third party data and access it in one centralized interface. 13SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,John Dearing John Dearing is a managing director at Capstone, a leading advisory firm focused on helping credit unions and CUSOs grow through proactive strategic growth programs and mergers and acquisitions. He … Web: www.CapstoneStrategic.com Details 2018 has been a banner year for credit unions…but will a recession follow soon? Credit unions recorded a stellar performance in the first nine months of 2018, adding more than 4.2 million new members, the fastest pace in credit union history. Rising demand for loans driven by the low unemployment rate and strong economic growth underline this membership expansion. Other factors indicate a strong performance. In September 2018, the credit union loan-to-savings ratio increased to 85.8%, surpassing the pre-crisis level of 83.4% in 2007, while liquidity represented by surplus of funds as a percent of assets fell to 23.7%, the lowest level since July 1980. While the strong performance is encouraging, it also may signal some storm clouds on the horizon. A high loan-to-savings ratio typically occurs prior to a recession and can be a double-edged sword during a downturn. Financial institutions will lose the income generated from loans because consumers can’t afford or are unwilling to borrow as much during a recession. In addition, with an already high level of debt credit unions and banks have low liquidity meaning there are fewer funds to lend even to qualified consumers.With the next recession looming on the horizon, credit unions’ competitive advantage becomes increasingly important. In the days of social media and smart phones, user experience and member satisfaction are very important factors. As non-profit cooperatives, credit unions traditionally pass on this advantage to members and, and when compared to banks offer higher rates on savings accounts and lower rates on loans and credit cards. In addition, credit unions charge lower fees and are unlikely to require a minimal balance. While credit unions should continue to leverage these competitive advantages, they should also focus on additional attributes to maintain their superior consumer satisfaction ratings.Digitization is increasingly becoming a competitive differentiatorMembers today expect ease of use and 24-7 service through digital banking from their financial institutions. Digitization has two benefits: improved convenience for the consumer as well as lower operating costs for organizations. Credit unions still have time to embrace comprehensive, connected banking suites for multiple account and loan types to digitize every step of the member journey. For example, few banks offer a fully automated platform or take advantage of digital opportunities for commercial and small business loans, but rather focus on mortgages and consumer loans according to the American Bankers Association. To capture more active mobile banking consumers early, credit unions should complete digital transformation to a comprehensive omnichannel platform in three main areas of the account acquisition and lending process: Enhancing value of in-branch visits through advanced technologies and improvements to in-branch employees experience will be critical for credit unions. Despite growing importance of digital banking and declining number of transactions at the brick-and-mortar branches, consumers still crave personal interaction and prefer to open accounts at institutions with physical branches according to a study by TimeTrade, a provider of customer engagement services. Member-owned status coupled with community-oriented philosophy give an advantage to the credit unions compared to the banks. Credit unions would benefit from mobilizing their branch staff through additional training, access to omnichannel transactions, as well as transforming branches with technological advances to reduce wait periods, offer personalized services and provide integrated online-branch experience.While it may be a bit daunting to consider a recession during such a strong period for credit unions, the reality its best to consider the future now so that your credit union can not only to survive, but thrive during an economic downturn. Fortunately, there are many opportunities for proactive credit unions willing to embrace digital transformation while strengthening in-branch experience by developing new solutions in-house, partnering with or acquiring another organization like a fintech, and investing in CUSOs. The key for credit unions is to stay true to the credit union ethos by focusing on the needs of your members and determining how to best serve them regardless of market dynamics.
Will you be the first P16 Billion Powerball jackpot winner from the Philippines? UST barges into UAAP women’s basketball Final 4 after ousting La Salle Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew “I would rather die than lose in the Philippines. Hindi ko kaya yun (I can’t take that),” said the 41-year-old Vera during the press conference for the event on Tuesday at City of Dreams Manila.Vera has been away from the action for two years since he pummeled Hideki Sekine into submission to keep the belt, which was also witnessed the adoring hometown crowd at the same venue of his upcoming fight.FEATURED STORIESSPORTSGinebra beats Meralco again to capture PBA Governors’ Cup titleSPORTSJapeth Aguilar wins 1st PBA Finals MVP award for GinebraSPORTSGolden State Warriors sign Lee to multiyear contract, bring back ChrissBut there’s no doubt in Vera’s mind that he’s ready for a monster of a challenger in Mauro Cerilli, a champion in Cage Warriors who has won all but one of his last five fights by way of knockout.Vera, who juggled filming the highly-acclaimed movie “Buy Bust” while keeping in top shape during his break, guarantees that rust is not going to be an issue on Friday. Nadine Lustre’s phone stolen in Brazil LATEST STORIES Tim Cone, Ginebra set their sights on elusive All-Filipino crown Gov’t to employ 6,000 displaced by Taal Sports Related Videospowered by AdSparcRead Next Carpio hits red carpet treatment for China Coast Guard PLAY LIST 02:14Carpio hits red carpet treatment for China Coast Guard02:56NCRPO pledges to donate P3.5 million to victims of Taal eruption00:56Heavy rain brings some relief in Australia02:37Calm moments allow Taal folks some respite03:23Negosyo sa Tagaytay City, bagsak sa pag-aalboroto ng Bulkang Taal01:13Christian Standhardinger wins PBA Best Player award Japeth Aguilar embraces role, gets rewarded with Finals MVP plum Don’t miss out on the latest news and information. Gretchen Barretto’s daughter Dominique graduates magna cum laude from California college Brandon Vera walks out of the stage after the press conference for ONE: Conquest of Champions at City of Dreams Manila on Tuesday. Photo from ONE CHAMPIONSHIPLosing is not an option for ONE heavyweight champion Brandon Vera, especially not on his home soil.The charismatic Fil-American fighter, who is making his second defense of the title in ONE: Conquest of Champions, said he would rather lose his life than lose his crown in full view of the Filipino fans at Mall of Asia Arena on Friday.ADVERTISEMENT Allen Durham still determined to help Meralco win 1st PBA title “Hindi naman kinakalawang talaga ang tao eh, diba?” said Vera with a smile. “Kinakabahan. Kalawang, wala. Sigurado pag tinamaan ako ni Cerilli, mawawala din yun. Basta ready na talaga, sobra.(Human’s don’t get rusty, right? I’m nervous, yes. But rusty, no. Maybe when Cerilli hits me, it will go away. I’m really, really ready.)While his career in a different arena has taken off since he last stepped in the cage, Vera said that hasn’t affected his hunger to win.“As much as I delivered, I’m giving even more. And I wanted it more now,” he said.ADVERTISEMENT MOST READ View comments