Volunteers

Top 10 Strategic Planning Trends

The future looks to be increasingly mobile.

June 10, 2013
/ PRINT / ShareShare / Text Size +

As you create strategies and goals to guide your credit union into the future, consider how these 10 trends, from the 2013-2014 CUNA Environmental Scan, might alter the course you set:

1. Mobile payments are growing at a 68% annual growth rate—from $16 billion in 2010 to a projected $214 billion by 2015. It has been called the single greatest opportunity—and threat—for credit unions.

This is a new ballgame. Members used to come to credit unions for cash and credit union-branded checks or plastic cards.

But members won’t be coming to the branch for their mobile payment branded devices. Instead, mobile payments will come down to access, not devices.

The challenge will be to retain your members in a mobile-payments world.

2. Mobile banking. Consumers expect to be able to access a variety of financial products and services from their mobile devices with ease and reliability.

There will be an estimated two billion active smartphones worldwide by the end of 2013, according to Deloitte. Mobile banking has gone from cutting edge to mainstream faster than any other financial innovation.

It’s quickly becoming a basic expectation, especially among younger consumers.

But there’s a downside, and it involves…

3. Mobile malware. With the rapid proliferation of smartphones and the explosion of downloadable applications, it was only a matter of time before malware started targeting mobile devices.

That time has arrived: Trend Micro estimates the number of malicious Android apps will hit one million in 2013.

Your credit union will have to invest more in mobile malware detection and prevention to keep up with increasing threats. Educating members about how to protect themselves from mobile malware also should be a priority.

4. Credit union lending is expected to grow 5.5% in 2013 and 6.5% in 2014. Credit unions finally report rising loan balances after three years of negligible growth due to an improving economy, rising consumer confidence, and declining household deleveraging.

Credit unions can expect growth in auto loans, credit cards, and purchase mortgages due to pent-up demand created by the recession. And a 3% to 5% increase in home prices over the next year should increase demand for second mortgages and home equity loans.

It’s time for loan underwriters and loan officers to get out of a recessionary mind-set and think proactively about growing loan portfolios.

5. Credit union earnings will be meager. Average return on assets will fall to 0.75% in 2013 and 2014 from 0.84% in 2012. A 10 basis point (bp) decline in net interest margins will be partially offset by a 5 bp decline in loan loss provisions.

The Federal Reserve’s policy of maintaining low interest rates will maintain downward pressure on credit union net interest income for the next two years. With asset yields falling faster than funding costs, interest margins will fall from 2.93% in 2012 to 2.8% in 2013—the lowest on record

NEXT: Unite for Good

Reach Gen Y Through Their Parents

MARK ARNOLD
June 04, 2013 8:46 am
Steve, As always, the E-Scan provides key strategic insights for credit unions to consider. When it comes to reaching Generation Y (trend number 10), one of the best things credit unions can do is to target mom and dad. Research indicates that most young people start their first "bank" experience where their parents recommend. So to reach Gen. Y, go after mom and dad. Mark


Flag Comment as Offensive

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive