RANCHO CUCAMONGA, Calif.-What's happening in the small business market today, with many banks turning their backs on these customers and credit unions expressing greater interest in serving them, is a strong signal that big change is coming for CUs by 2109, observes Stan Hollen.
"During the next 100 years, a focus on small business will become extraordinarily important," said the CEO of Co-Op Financial Services here. "It will become a much greater part of the industry by 2109. It provides a source of members and is a great business opportunity."
Hollen said that is too difficult to predict what a credit union will actually look like in the future, but he knows there will be a very large emphasis on self help and CUs will be smaller in number. "Branches will be highly automated and look very different than they do today," said Hollen. "And credit unions will number between 1,000 and 2,000."
Technology will be much more sophisticated and play a significantly greater role in the lives of members as high convenience will be the norm. "Access to funds will be almost instantaneous," Hollen predicted. "It will also be easy to move funds between consumers-person-to-person transactions will become much easier to do."
In the not too distant future, possibly within three to five years, Hollen predicted we'll see other forms of capital on credit union balance sheets. "We have to find a solution to the constraints on growth, and there are a lot today. Many credit unions are trying to chase money out the door to increase reserve ratios. Consumers want to turn to credit unions at a time when we are challenged to welcome them."
Hollen hopes that the role of the volunteer will continue in 2109. "The role of the volunteer is tough to project over the next 100 years. It's an important distinction between credit unions and banks."
