MADISON, Wis. - CU leaders expect competitive pressures will only increase in the near future, but do not anticipate any changes in the regulatory structure or tax status that would have a negative effect.
Those are some of the results of a semi-annual survey conducted by the Credit Union Executives Society and Strategic Radar Inc., Conshohocken, Penn. The program includes collaboration and input from 35 industry leaders on 12 important trends and strategic success factors shaping the industry by 2010.
The survey results indicate that industry leaders expect competitive pressures to increase. In addition, the traditional regulatory and tax protections for credit unions will continue at current levels providing some competitive stability in the market. "Consumer desire for convenience will drive a shift toward the use of electronic channels for transaction, wealth accumulation and borrowing services," the analysis suggests. "The implication of the shift to the use of electronic channels is the high importance of the strategic role of back office technology for operations, marketing and member service. Building competencies in these areas with limited resources puts pressure on credit unions to find non-traditional approaches for building scale and capability across a broad product and delivery platform."
The panel surveyed said it expects to see both cooperation and consolidation increase. Among other findings:
* Credit union access to alternative or non-traditional sources of capital remains unlikely, particularly while the protections and tax benefits to the industry remain unchanged.
* Regulatory barriers to converting to bank charters will result in low levels of demutualization activity over the next three years.
For info: www.cues.org.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com/ http://www.sourcemedia.com/
