Originally posted on cumanagement.com
The financial services industry faced intense challenges in 2023, such as high interest rates, staffing shortages, and liquidity, to name a few. To remain competitive, FIs were forced to increase deposits rates, sending more money out their doors to retain deposits which had a dramatic impact on their net interest margin. While the nation is (slowly) trying to make its way back from the crazy, upside down, mess of a financial year 2023 was, there are bright spots in the 2024 forecast as well as some consultive tools you may not be familiar with, but will be happy to learn about, as they will not only help your credit union’s bottom line but also save energy, bandwidth, and precious time.
2024 Forecast: Partly Sunny
Whenever a storm rolls through, you look for the next sunny day. A recent annual survey by Cornerstone Advisors to community-based financial institution executives showed some positive outlooks in 2024 vs their 2023 outlook survey. While 52% of those surveyed anticipate a recession or downturn in the economy for 2024, credit union executives show less concern in 2024 for:
· interest rate environment (Þ14%)
· weak economy/loan demand (Þ15%)
· ability to attract qualified talent (Þ16%)
Generative AI dominated conversations in 2023 and it shouldn’t be any surprise to see 24% of the credit unions surveyed planning to invest/implement it in 2024, which is a pleasant sign that credit unions are leaning into new tech and innovations.
Spring into Efficiency
This spring, plan to transform 2024 into a year of efficiency! By being more efficient, your credit union can help lower its expenses, which helps increase revenue. One such avenue are card and check program consulting that are specifically designed to save your organization time and money, improve revenue predictability, and even control or eliminate on-going price increases by negotiating the best terms on your behalf.
For instance...continue reading