MADISON, Wis.-According to CUES President Fred Johnson, the strength of credit unions in 2109 will be no different than it is in 2009.
"I think the promise of credit unions has always been to improve the financial well-being of its members," Johnson said. "And if we lose that notion, because public trust is fragile, then we won't be around in 100 years. But that's one thing we do really well, and my guess is it will still be our focus and we'll be serving members in 2109."
Credit unions will continue to fill the role of the trusted advisor, but the industry must first work its way through current challenges. "We are in period of time in which many people do not trust financial institutions," Johnson said.
Other obstacles in the credit union road to 2109 are NCUA assessments that could remain in place. "Credit unions are asking, 'When will we get back to normal?' Well, this might be the new normal," said Johnson, adding that will require credit unions to place even greater emphasis on business strategy to manage the bottom line.
Maintaining credit union's tax exemption may be an easier feat for small credit unions, whose biggest threat to their continuing viability is increasing regulation. "If you are a $20-million credit union you have maybe five people on staff. It's tough to keep up with the additional regulation," Johnson said.
What will help credit unions in 2109, especially the smaller shops, is a sharing of back-office resources. "There is no reason that the billion-dollar credit unions cannot support several smaller credit unions," Johnson concluded. "It's happening already."
