MADISON, Wis. (8/3/12)--The Credit Union National Assocation has released its 2012-2013 Credit Union Environmental Scan (E-Scan), a high-level view of the credit union competitive landscape that credit unions can use as strategic planning tool.
E-Scan covers trends in areas such as compliance, finance, lending and marketing.
Among the topics addressed in this year's E-Scan are 10 trends that will have implications for credit unions. They include:
1. Mobile banking. The top technology priority for credit union CEOs is mobile banking as credit unions seek to create a consistent member experience among channels.
2. Antibank sentiment. While Bank Transfer Day brought credit unions more members, it's time to solidify those relationships for the long term.
3. Consumer awareness. About 37% of consumers are "not at all" familiar with credit unions. This doesn't bode well for long-term credit union growth.
4. Earnings rebound. Modest growth and strong earnings will mean capital-to-asset ratios will increase from 10% today to about 11% by year-end 2013, approaching the record level of 11.5% set in 2006--the year before the onset of the recession.
5. Staffing. Layoffs, cutbacks, salary freezes and other belt-tightening measures have employee morale low following the recession. There could be consequences--lower productivity, less engagement, poor member service, loss of talent--without proper incentives and work-life balance.
6. Lending. After three years of essentially no loan growth, credit union loan balances should increase 4% in 2012 and 6% in 2013.
7. Governance. As the credit union business model evolves, so must its governance model. Innovative boards need a bolder approach to future challenges.
8. Membership growth. Currently, more than 21 million nonmembers younger than the age of 18 live in members' homes. Credit unions must attract Generations X and Y to ensure growth.
9. Technology. Using technology to achieve greater efficiencies was listed as another among credit union CEOs surveyed by Abound Resources.
10. Compliance. Credit unions have to anticipate regulatory changes from both state and federal agencies while placing a priority on member needs.
To access the E-Scan, use the link.