NAPERVILLE, Ill.-More CUs are concerned about long-term sustainability, according to one strategic planning firm that expects the topic to be front and center at many planning sessions this fall.
Craig Younkman, senior consultant at the Institute for Strategic Learning, acknowledged that rising rates will only fuel that focus, saying margins will likely compress further over the next year. "Credit unions are really concerned about their sources of on non-interest income and balancing that with the expense side of the ledger-especially having to invest in technology."
President John Redding sees credit unions' concern with sustainability embracing several issues. "Alternative payments, shifts in delivery channels, consolidation within the CU movement ... This is all coming together and having credit unions taking a long-term look at what it takes to be a sustainable organization."
Other issues on CUs' agendas, according to ISL:
* The emergence of mobile banking and mobile payments.
* The future role of branches.
* Increasing national competition.
"While the credit unions still pays attention to the local market, it can no longer ignore financial institutions across the country that are reaching into their markets," said Younkman.
