10 Strategic Questions, Raising Deposit Rates, And More

Five can’t-miss data points this week on CreditUnions.com.

 
 

This week, CreditUnions.com profiles a deposit strategy five years in the making, answers 10 questions that are keeping credit union leaders up at night, marks the countdown to CECL, and more.

Here are five can't-miss data points:

0%

For the past decade, the Federal Funds Rate has hovered at or near 0%. This is the lowest rate in the history of the Federal Reserve and is the result of the central bank’s efforts to encourage spending, borrowing, and investment to bring the United States out of the Great Recession. Consequently, borrowers have enjoyed an unprecedented run of low loan rates. That’s about to change. See how one credit union has positioned itself for a rising rate environment.

Read: A Deposit Strategy 5 Years In The Making ​

 

 

10

Today’s financial services landscape is rapidly changing. For credit union CEOs and executives, the best defense lies in the constant evaluation of threats and opportunities. Callahan & Associates speaks with credit union executives every day, and certain pain points keep popping up in these discussions. But every problem has a solution, and leaders also are quick to share the ways in which they’ve overcome challenges. Here are 10 questions keeping credit union leaders up at night and how the movement is responding.

Read: 10 Questions That Keep Credit Union Leaders Up At Night (And What To Do About Them)

2019

Credit unions are counting down to an accounting sea change. New current expected credit loss (CECL) standards will take effect at the end of 2021 for all financial institutions. Credit unions, however, have the option to adopt the new standards in 2019. Here's what credit unions need to know.

Read: The Countdown To CECL Has Begun

9%-10%

Credit unions are different from banks. Most credit union members understand this.  And it's one heck of a value proposition that seems to be resonating with consumers. According to first quarter data reported by Callahan & Associates during its quarterly Trendwatch webcast, the credit union market share of auto finances, non-revolving consumer loans, first mortgage originations, revolving consumer loans, and consumer deposits were each at an all-time high. Why, then, is the movement's total market share for core products and services only 9%-10%? 

Read: Is The Credit Union Movement Ambitious Enough?

$486.8 billion

Total real estate loans at credit unions increased 9.4% over the past 12 months and reached $486.8 billion as of March 31, 2018. The greater credit union loan portfolio is expanding at a faster rate than in the past. As such, real estate loans accounted for 49.5% of all credit union loans in the first quarter. That’s a drop of 4.1 percentage points compared to the first quarter of 2013, when real estate loans accounted for 53.6% of total loans.

Read more: Mortgages By The Numbers 

Happy Reading!

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July 30, 2018


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