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Posted: Mar 9, 2016
Comments: 0
Author: Bill Lehman

It’s not uncommon for credit unions to overlook existing cardholders as a significant opportunity to help stimulate portfolio growth and increased profitability.  But, it is more common for credit unions to equate portfolio growth and increased profitability solely on new account acquisition.  However, it is easier and more cost effective to leverage your existing cardholders for increased portfolio growth and profitability than to acquire new accounts.    

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Posted: Mar 4, 2016
Categories: Regulations
Comments: 0
Author: Lou Grilli

Compared to banks, credit unions have not been a big player in the small business loan segment with $56 billion in Member Business Loans (MBL) compared to $585 billion as tracked by SBA.gov. But that is about to change, now that the NCUA voted to strip a number of restrictions on MBL.

Credit union commercial loan growth has been steady during the 15 years examined here. More importantly, it has been resilient during the last two recessions according to Filene Research, suggesting that credit unions can buoy both lending growth and, as a consequence, overall business activity. To hammer this point home, at the 2016 CUNA GAC, Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB) stated, “Credit unions did not underwrite the bad loans that sank the housing market. On the contrary, you upheld sound underwriting standards to protect consumers, even as it cost you customers and market share went to financial predators that circled those troubled waters”.

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Posted: Feb 29, 2016
Comments: 0
Author: Lou Grilli

Gain younger members with a streamlined and digital friendly onboarding process

Mobile account opening is an effective method for credit unions to convert potential applicants to new members. According to a recent report by Javelin Research, when opening a standard share draft account, 70% of likely applicants say they would prefer to submit a digital application.  A Mobile Strategy Partners (MSP) study says 12% of all banking customers in the U.S. will switch financial institutions this year.  And if you are looking to attract millennials as members, MSP points out that 21% of all millennials will make the switch.

 


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Posted: Feb 23, 2016
Comments: 0
Author: Tom Davis

Wouldn’t it be nice to say goodbye to plastics.  Imagine your cardholder loses your card while away on a business trip. Imagine your cardholder getting that dreaded phone call or text alert notifying them that their debit or credit card number has been compromised and the card has been shut down. These are tough realities, right?

 

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Posted: Feb 19, 2016
Comments: 0
Author: Lou Grilli

10 Steps Credit Unions Should Take To Keep Member Data Safe

Taken at face value, mobile payments are considered more secure than credit cards, even more secure than EMV chip cards. Unlike chip cards, the payment credentials stored on the phone or watch are tokenized, whereas the chip card has the actual card number on the chip. Also, the phone requires an additional authentication (a fingerprint or a passcode) which the card does not require. This is the current case with Apple/Samsung/Android Pay. But there are other forms of payments both in the market and in start-ups whose focus is not on security. These start-ups are working on merchant-specific payment and loyalty apps, on-demand service apps, pay-at-the-table apps, and the vulnerability of these new forms of payments are driving increased security concerns.

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