SAN FRANCISCO - Stan Hollen, CEO, CO-OP Financial Services
As the head of what is, "by most definitions, the largest CUSO," Hollen said CO-OP is in the unique position of having its finger on the collective pulse of the credit union movement. To leverage that position, CO-OP frequently surveys its membership and offered some insights gained from one such recent survey.
According to that survey, credit union CEOs identified their top challenges to be:
* Member growth (64% of respondents)
* Lower margins (62% of respondents)
* Growing deposits (10%)
* Keeping up with technology (10%)
"To help our member credit unions meet these and other challenges, CO-OP is working on several initiatives, including check imaging and reloadable, pre-paid cards," he said. "In addition, we are moving ahead with our ATM signage program. It will have the credit union's name and the CO-OP logo, so people see the link."
Next on CO-OP's technology list: expanding text messaging capabilities and implementing GPS locators for ATMs. Hollen said CUs should be looking at mobile banking and contactless payments not as distant future possibilities, but as creators of top-line help in the near future. "Financial institutions earn more revenue from payments than any other non-interest income source. Be sure to look at contactless payments."
Bob Siravo, CEO, WesCorp
"These are troubling, challenging times. There is a lot of pessimism out there," Siravo said. "The economy probably trumps everything."
The big question, he continued, is how can CUs move forward? For starters, he acknowledged the press coverage corporate CUs have received in recent months due to unrealized losses from mortgage backed securities but quickly added, "your money is safe and sound at WesCorp."
Siravo's forecast: interest rates will restore the spread, much to the relief of many. "Once the bottom hits in the real estate market, credit union income statements will start to improve," he predicted. "We see check volumes continue to decline and electronic transactions continue to increase."
Sarah Canepa Bang, CEO, FSCC
FSCC's Canepa Bang said the current financial crisis has had an unintended effect: "People out there have finally figured out what we've known for 100 years-cooperatives work!"
The challenge, she said, is taking advantage of this new-found awareness. One way to meet that challenge, she suggested, is exploring and expanding the delivery channels CUs make available to their members, and that's where movile services and remote deposit capability, as well as other technology, come into play.
"If you think home banking is important, given the number of people with cell phones you ought to look at mobile banking," she advised the crowd. "Remote deposit allows members to make deposits in their bedroom slippers."
Jeff Post, CEO, CUNA Mutual Group
Post said CUNA Mutual Group has been "spending a lot of time doing what we have been doing for 75 years: No. 1, making sure credit unions are protected, No. 2, trying to find new products with credit unions' logos to help them generate fee income, and No. 3, in difficult economic times, we take losses off credit union balance sheets and put them onto ours."
In addition, Post said CMG continues its advocacy efforts on behalf of credit unions in Washington. The key, he said, is credit unions continuing to work together and with partners dedicated to help them survive and thrive.
"These are dangerous times, but I honestly believe every one of you can be wildly successful," he offered.
Tony Boutelle, CEO, CUDL
Despite sharp declines predicted for auto sales, Boutelle insisted there are opportunities for to increase their market share. Among those opportunities:
* Dealers are in need of financing sources and are actively seeking out CUs.
* Other financial institutions face a higher cost of lending compared to CUs.
* Regardless of the economy, people need cars, which means there will still be a need for auto loans.
And among the reasons credit unions should focus their attention on auto lending:
* Home equity lending is drying up.
* With apologies to his fellow panelist, Bob Siravo, the margins on auto lending are better than investing in a two-year certificate at WesCorp.
* Auto lending, particularly indirect auto lending, is a way to reach to new members, as well as existing members.
