CHICAGO–With 2017 now here, there have been numerous forecasts about what the new year might hold, representing everything from how a new administration and Congress might act to the future of rates to technology’s implications.
Below are some of the predictions that have been made across that spectrum as previously reported in CUToday.info. Readers will find a short description, as well as a link to the full story.
How Fed Rate Increases Could Affect Card Portfolios
ST. PETERSBURG, Fla.—The Fed’s move to increase the Fed funds rate by 25 basis points, only the second time the FOMC has raised rates this decade, could negatively impact margins and profitability for many credit union credit card portfolios, according to Chris Joy, principal with PSCU’s Advisors Plus credit card consulting team. The full story can be found here.
Look For More AML Fines
SAN DIEGO—Expect more anti-money laundering (AML) fines next year and data breaches to rise due to outdated security practices, according to Mitek. The full story is here.
Has the Rush to Mobile Peaked?
FRAMINGHAM, Mass.—Is the mobile phone boom petering out? New data indicates that might be the case. The full story is here.
Where Regulatory Relief May Come From in 2017
WASHINGTON–What successes credit unions secured in Washington during 2016 primarily came at the regulatory agency level. Now credit unions are hopeful a new Congress and administration will mean success there, as well, in 2017. The full story is here.
How A New Administration Might Change NCUA’s Leadership
WASHINGTON–As President-elect Donald Trump continues to work his way through the transition to taking office and making appointments to various departments and agencies, there has been plenty of discussion around what might happen to the leadership at NCUA. The full story is here.
Rep Tells CUs ‘We Can Start making Some Changes’
SUMTER, S.C. – During a visit to SAFE Federal Credit Union here, U.S. Rep Mick Mulvaney said that with Republican control of both houses of Congress and an incoming Republican president, “we can start making some changes.” Since his comments, Mulvaney has since been nominated to become director of the Office of Management and Budget. The full story is here
How Rising Rates Might Affect Members
ONTARIO, Calif.–While credit unions think of rising interest rates in terms of the risk they present to their own institutions, rising rates will also affect members, notes one new analysis. The full story is here
The Outlook for Economic Growth in 2017
WASHINGTON–Modest economic growth for 2017 is being forecast by Fannie Mae’s Economic & Strategic Research (ESR) Group.
In its November 2016 Economic and Housing Outlook, Fannie Mae said the slowdown in job growth and business investment suggests the economic expansion has transitioned to a late-cycle phase, in which growth tends to moderate and, in turn, makes the economy more vulnerable to shocks. The full story is here.
An Update on Corporates, And When a ‘Rebate’ Might Be Paid
ALEXANDRIA, Va.–The NCUA board was given a detailed update on the resolution of the failed corporate credit unions, including how and when any type of “rebate” might be paid to insured credit unions that earlier paid assessments to cover losses. The full story is here.
How Artificial Intelligence Might First Be Applied in CUs
ALPAHARETTA, Ga.—Where will rapidly developing artificial intelligence first begin to be seen in credit unions? Most likely inside credit union branches in the form of a “greeter” that will assess consumers’ needs and direct them to the proper employee for assistance. That is the opinion of workforce analytics firm FMSI, which predicts that greeter will come in the form of an avatar within a kiosk at the front of the credit union’s lobby. The full story is here.
Can Two Regs Really Be Cut For Every New One?
WASHINGTON—What will President-Elect Donald Trump’s announcement that during his first 100 days in office he wants to see two federal regulations eliminated for every new regulation enacted mean to credit unions?
Trump made the announcement in a YouTube video outlining the executive actions he plans to take during those first 100 days. The story can be found here.
Advice On Card Pricing Moving Forward
DES MOINES, Iowa—Another expert is recommending that CUs consider plans for adjusting credit card programs, possibly moving from a fixed to variable rate and adopting risk-based pricing. Cindy Williams, vice president of regulatory compliance at PolicyWorks, noted that with credit card competition significantly increasing, rising rates on their way, and the fact that card portfolio pricing does not turn on a dime due largely to compliance concerns, credit cards demand attention now. The full story is here.
The Potential Role For Self-Service
HOUSTON—As the “digital revolution” takes hold, one company sees the role of the first FI self-service device—the ATM—only becoming larger. “A massive financial services industry transformation—technologically, operationally and culturally—is under way as credit unions and banks scurry to meet shifting member and customer needs,” said Bill Knoll, executive vice president and managing director at Allpoint. The full story is here.
Credit Unions At Risk of Redlining In 2017?
ALEXANDRIA, Va.—NCUA says its new field of membership rules will not raise the thorny issue of “redlining” for credit unions.
The agency shared its view with CUToday.info following one analyst’s suggestion that the new FOM rules, among which is the elimination of the requirement for an FCU to serve its core area in any new charter expansion or conversion request, could create scenarios under which credit unions might decline to serve certain low-income communities. The full story is here.
Other Implications From The Elections
WASHINGTON–The election of Donald J. Trump as the next president of the United States, along with the outcome of congressional races in which credit unions had made some significant investments, will have numerous implications in the years to come. The full story is here.
A Potential Tipping Point for Omni-Channel in the New Year
HENDERSON, Nev.—Many credit unions are working to implement an omni-channel member experience. But many are also being challenged by internal issues, including turf battles and a lack of communication. Bluepoint Solutions believes that 2017 will be a tipping point for omni-channel delivery in financial services, but it’s not going to take place without some operational soul searching. The full story is here.
An Inflection Point For Card Programs?
PETERBOROUGH, N.H.–Are CUs at an inflection point with their credit card programs? Will some CUs again look to sell their portfolios rather than compete with aggressive cash-back programs from other issuers? One payments analyst thinks so. The full story is here.
How Merchants Might Affect CU Card Decisions
ST. PETERSBURG, Fla.—A move by a number of merchants nationally in the wake of the EMV liability shift deadline to accept only PIN debit will likely force some CUs to make difficult decisions next year regarding pricing and fees, suggests one analyst. The full story is here.
Vehicles With Negative Equity Could Play Role In Leasing Volume
SANTA MONICA, Calif.—The number of car buyers trading in vehicles with negative equity continues to rise—a bad sign for the economy, but possibly good news for auto leasing. Analysts suggest leasing could end the cycle of underwater trade-ins for many, and help right consumers’ balance sheets. They also think leasing’s growth will accelerate, possibly accounting for 40% of all new car sales in 2017. The full story is here.
Is The Serverless Credit Union on the Horizon?
LAYTON, Utah—Is the “serverless” credit union on the horizon? CUProdigy believes it is, thanks to advancements in cloud technology. The company says that in 2017 credit unions can expect to see a significant increase in the number of ways cloud technology can be leveraged. The full story is here.
2017: The Year CUs Learn A New Language (or Two)
DES MOINES, Iowa—2017 will be the year U.S. credit unions pay much more attention to those who speak limited English and to serving their growing financial needs, asserts one expert. Miriam De Dios, CEO of Coopera, said this shift will happen due not only to consumer groups and regulators raising the attention of FIs in this country, as they more closely monitor how financial organizations serve individuals with limited English proficiency, but also due to CUs understanding how big of a difference they can make in these people’s lives. The full story is here.
CUNA Mutual’s Economic Forecast for New Year
MADISON, Wis. – Increases in housing construction and rising oil prices will drive higher economic growth higher next year, while auto sales should remain robust, according to CUNA Mutual’s chief economist. The full story is here.
Analytics & Card Portfolio Management in 2017
DES MOINES, Iowa—With rates expected to eventually rise and credit unions making greater use of data analytics, TMG expects CUs next year will pay much more attention to managing the credit card portfolio. The full story is here.