Lending, Mobile, And The Member Experience

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

 
 

This week, CreditUnions.com introduces the Lending and Mobile finalists for its 2019 Innovation Series, finds six ways to reduce friction in the member experience, and digs into the industry's deposit and delinquency trends at fourth quarter.

Here are five can't-miss data points:

10 Minutes

In 2018, CreditUnions.com launched a one-of-a kind contest that showcases the ways in which inventive suppliers are transforming the credit union industry. Presented by CreditUnions.com and sponsored by Callahan & Associates, the Innovation Series gives four suppliers 10 minutes to impress a captive audience of credit union decision-makers. Suppliers pitch their cutting-edge solutions. Attendees vote on their favorite. This week, learn more about our Lending and Mobile finalists.

Read: Meet The Lending Finalists For The 2019 Innovation Series

Read: Meet The Mobile Finalists For The 2019 Innovation Series

 

 

12 Years Old

When Maurice Smith was 12 years old, his father asked him an important question as the duo worked together planting potatoes on the family farm. What did Smith plan to do with his life? After some thought and a trip to the bank — where an important-looking man in a corner office caught Smith’s eye — he had an answer. Smith wanted to be a bank president. Needless to say, Smith achieved his dream.

Read: The Importance Of Living With Purpose

6

The introduction of new technology in the world of financial services is both a boon and a bust for the user experience. Digital channels allow members to conduct transactions, research new products and services, and communicate with their financial institution — all on their own schedule. But new technology also is creating friction. The approach a credit union takes to reduce friction will depend on its brand, membership, resources and more, but here are six tried-and-true ways credit unions are improving member experience and reducing friction across the enterprise.

Read: 6 Ways To Do Reduce Friction In The Member Experience

5.3%

Total share balances increased 5.3% year-over-year and hit $1.2 trillion at year-end 2018, according to data from Callahan & Associates. Callahan analysts project regular share balances totaled $436.3 billion as of Dec. 31, an increase of 5.2% from the same time last year. At 35.3%, regular shares comprised the largest piece of the deposit portfolio. Money market accounts came in at No. 2 with 21.5% of the portfolio, and share certificates followed at No. 3 with 19.5% of the share portfolio. Learn more about the share portfolio at fourth quarter.

Read: More Deposits Point To Deeper Engagement

$1.1 Trillion

The total loan portfolio at U.S. credit unions is on track to reach $1.1 trillion. In 2018 alone, the industry added $88.9 billion to the portfolio, according to year-end projections from Callahan & Associates. Notably, as the loan portfolio has grown, delinquency and charge-offs have decreased. Analysts at Callahan & Associates project overall delinquency declined 10 basis points across 2018 to 0.71% as of Dec. 31. This is the lowest fourth quarter rate since 2006, when credit unions reported a rate of 0.64%.

Read: Lending Surpasses $1.1 Trillion. Asset Quality Doesn’t Waiver.

Happy Reading!

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Feb. 25, 2019


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