In 2007 the Credit Union Journal introduced another tool to the credit union community: the ability to “vote” online on a hot, topical issue. At www.cujournal.com readers voted throughout the year on issues in the news: member borrowing habits, lending forecasts, legislative issues, and more. The poll is always insightful and sometimes humorous. It will remain a feature in 2008. Take a moment and vote in this week’s poll at www.cujournal.com.
CU JOURNAL ONLINE SURVEY
What changes have you seen recently in members borrowing habits:
Confident, more willing to borrow 14%
Less confident, less willing to borrow 64%
No change 23%
CU Journal has turned 10. Ten years ago were you:
In credit unions 64%
Familiar, but not employed by, CUs 26%
Never heard of credit unions 9%
Media coverage of the subprime mortgage market meltdown:
Is overstating the problem 30%
Is understating the problem 32%
We’re still working on our plan and market forces may still reshape it 38%
Given the margin squeeze, with respect to insurance sales we:
Are placing the same importance on it as we always have 54%
Are placing more emphasis on it 33%
Would like to place more emphasis on it but lack the skills to do so 12%
NCUA’s new rules making information available to members will:
Discourage CUs from seeking conversions 20%
Not discourage CUs, but will make it harder 46%
Will have no effect 34%
Regarding the upcoming International Credit Union Week:
We don’t do much with it 31%
We try to leverage it to gain awareness in our community 20%
Is something only credit unions pay attention to 49%
I expect rising mortgage rates to lead to:
Little to no effect on our volume 32%
A slowdown in our lending 52%
An increase in delinquencies 17%
The losses some CUs are seeing on loans for a Florida developer:
Will mean new scrutiny from Congress 39%
Are going to be exploited by banks 38%
Are a limited, short-term problem 23%
What needs to be done to improve credit/debit card data:
More consumer education 8%
Card companies should beef up enforcement of security rules 59%
Legislation and/or regulation is needed 33%
Multi-Factor Authenticataion has turned out to be:
Effective strategy for controlling fraud 18%
More cost and time-expense for little in response 67%
Neither positive or negative 15%
We are anticipating that for the remainder of 2007:
Overall, rates will rise 6%
Overall, rates will drop 63%
Overall, leaves will fall, snow may pile up, but rates aren’t moving 31%
Today there are 8,500 U.S. credit unions. In 2012 there will be:
7,500 credit unions 14%
6,000 credit unions 36%
5,000 credit unions 50%
Members who join via indirect loans:
Should not be permitted 10%
Will never be more than that 40%
Can develop deeper relationships 50%
The future of the credit union market:
Will be dominated by the “big dogs” 37%
Has room for well-run small and medium-sized credit unions 37%
Will require both to cooperate and pool their resources to survive 26%
The meltdown in the subprime mortgage market means:
Little to our credit union 41%
We reviewed our credit standards 18%
Trouble for some of our members 41%
With the first half of the year over, our credit union:
Is tweaking the strategic plan for the rest of the year 38%
Is scrapping the strategic plan and starting over for the rest of the year 10%
Is staying the course with the strategic plan for the rest of the year 52%
When it comes to your card portfolio:
We sold it and are happy with the decision 12%
We sold it and regret the decision 6%
Are considering selling 21%
Would never sell 62%
NCUA’s proposed transparency rule:
Will help empower members in merger and conversions decisions 38%
Will have a ”chilling effect” on mergers, even friendly ones 10%
We’re still working on our plan and market forces may still reshape it 18%
How is your 2008 strategic planning going:
Plan? What plan? 40%
We’re comfortable, our planning is complete 0%
We’re still working on our plan and market forces may still reshape it 60%
I would like to read more about:
Deposit strategies 34%
Loan strategies 12%
Membership development strategies 53%
How do you plan to attract new deposits:
Raise rates 46%
Offer premiums/giveaways 27%
Make no changes 28%
For 2007, your CU’s greatest focus will be:
Branch initiatives 36%
Online initiatives 19%
SEG recruitment and penetration 45%
The federal government’s plan to provide relief in the mortgage market:
Is a good step and will help steady the market 18%
Will do as much harm as good 17%
Bails out a lot of irresponsible people 40%
Is simply because of it being an election year 25%
With respect to loan underwriting, will you:
Take more risk 43%
Take less risk 12%
Make no changes 45%
Boards that encounter members who object to board decisions:
Should cut off that member’s account access 5%
Have no right to cut off access 76%
It’s up to the individual credit union 19%
Which issue concerns your credit union most in 2007:
Ongoing margin pressures 33%
New membership growth 55%
Walletshare among current members 16%
What will the Democratic majority in the House mean for passage of credit union legislation?
It will be easier 40%
It will be harder 15%
It will make no difference 45%
How serious an issue are CU charter conversions?
Very serious 64%
Not very serious 29%
What’s a conversion? 7%
Who should be responsible for enforcing credit union bylaws?
NCUA 65%
State Regulators 19%
The Courts 16%
