The 'Wild Card' That Is The Durbin Amendment
RANCHO CUCAMONGA, Calif.-While predicting the economy's course may be difficult, what isn't so difficult is forecasting that the Durbin Amendment could have a big effect on credit union business the rest of the year.
Eric Porter, EVP of business development and marketing for CO-OP Financial Services, noted that the Durbin Amendment is the "wild card" that will soon set the course for many credit unions' decisions and determine the type of year they will have. But Porter said CO-OP is advising credit unions not to wait and see if the Durbin rule passes or is delayed before making plans. "We are urging credit unions to prepare now for whatever comes."
If nothing happens, then credit unions will be in a better position to take advantage of an economy that CO-OP believes is exhibiting signs of recovery. "Our indicators show that the economy is beginning to pick up. Our transaction volume in debit and credit is slowly moving north."
Porter added that CUs that fare the best in the second half of 2011 will be those that embrace electronic and mobile banking and pay close attention to members' buying habits. "Credit union members are demanding more access and convenience, anytime and anywhere, and on their terms. They want to reach the credit union 24/7 from whatever media they want."
"Social media is not moving mainstream, it is mainstream and credit unions must embrace it," Porter added.