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CU Snapshot

 Feb '18Jan '18
# of CUs5,7575,758
Total Assets
($ billions)
Total Savings
($ billions)
Net Cap.
Loans to Savings82.6%84.1%
Loan Delinq.0.8%0.9%

         Credit Union Indicators

Plan for These Seven Trends

Futurist offers five-year forecast for CUs.

The next five years will include more regulation, cyberthreats, technology hurdles, and nontraditional competitors, according to futurist Bob Treadway.

But he remains optimistic.

"So much about the future is so positive," says Treadway, founder of Treadway & Associates, who outlined industry trends during the next five years in a presentation for CUNA Mutual Group's online Discovery Conference.

According to Treadway, the seven trends that merit deliberation and action by credit union boards include:

1. Regulation stays ramped up. The pace of new regulation might slow, but the level won't decrease, particularly if a Democrat wins the U.S. presidential election in 2016.

2. Fees most likely need to increase. Conceding this would be a tough move for credit unions, which historically have insulated members from fees, Treadway advises a "fair and transparent process" toward any changes.

3. New investments such as emerging delivery channels, data analytics programs, cybersecurity defenses and insurance, and technological upgrades ranging from apps to core conversions will continue to grow.

4. More transactions overall—and more conducted away from branches. Banking will continue to move from somewhere we go to something we do. Americans can control delivery of services in almost every field, and when consumers can get what they want, when they want, they expect it from all systems.

5. Careful deliberation of new branch construction. Banks and major retailers alike now opt for smaller footprints, a trend fueled by Amazon's ability to drive down prices and expenses while carrying a larger inventory. For instance, Walmart builds its stores 35% smaller than a few years ago.

6. Cybersecurity will be the top risk priority. "Cybersecurity is a risk that can't be ignored, and you can't wait for the regulator to step in," Treadway says. The board, senior management, and the audit function of the supervisory committee must build a strategy with specific goals in mind.

7. Data analytics is coming. Companies analyze less than 1% of their data and convert even less than that to any proprietary advantage, The Wall Street Journal reports. Credit unions should strive for intimate knowledge of their members' financial behavior. The tools for drawing value from big data will become more commonplace and less expensive.

(Via news.cuna.org)