ST. PETERSBURG, Fla.-When credit unions meet to talk about next year's strategies, one discussion that should not be on the table is leveraging cost control as a primary means to pull the CU out of an economic tailspin.
PSCU Financial Services' Michael Yatros, chief client relations and operations officer, told Credit Union Journal that a credit union "does not budget itself out of a crisis. That type of action protects you for the current time. But the economic wheels are still turning. Investing in the future of the credit union is what generates growth. If you are not venturing out, and are pulling in the reins, you will likely come into a dry period sometime next year and for years afterward."
Yatros cited the current economy as offering a "unique opportunity" for credit union growth due to their strong reputation in light of banks' problems. "Instead of credit unions becoming more defensive and conservative, at PSCU we think they need to look at new opportunities, and review and adjust their business models to attract new market segments, such as young adults."
The change in business approach to reach youth, for many, is not drastic, emphasized Yatros. "We are talking about fine tuning. This market does not attract to bricks and mortar and prefer alternate delivery channels."
Other areas CUs should focus on in planning sessions are small business lending, managing increased regulatory scrutiny, and a "$200-billion student lending opportunity. That's the entire market," Yatros pointed out, adding that banks have not done a good job with this business. "If credit unions capture 10% of that, that's $20 billion."
For info: www.pscufs.com
