The new year is a good time to reflect, and 2020 certainly gave us a lot to think about. The pandemic brought unforeseen changes to the world, especially in regards to consumer habits. As people sought to avoid most in-person transactions, many industries were forced to make major adjustments to how they operate. The financial world was no exception.

Businesses are always looking for ways to cut costs and increase income, and credit unions are no different. Knowing how to reduce expenses and increase efficiency is crucial for the survival of any credit union. One of the most productive ways for a credit union to cut costs while simultaneously boosting income is to utilize the right core system technology.

In such troubling and uncertain economic times, many credit unions are just trying to survive. To do so, they must be agile and adapt to changes in member behavior. It’s also vital they communicate and reach out to members to understand their needs and wants during this crisis. Credit unions are discovering now more than ever that the technologies and core processing system they use make a huge difference in terms of growth.

We live in a time of technological wonder and change. Yet, many of today’s companies often pivot their talking points away from internal development, thus obfuscating the fundamental question and primary mission of any core: “How are you updating your core technology to keep my credit union relevant and competitive?” 

Since the pandemic struck in March, credit unions have had to adjust to the times and reevaluate how they do business. While maintaining healthy relationships with members continues to be crucial, there are other factors that can also determine a CU’s success. One of the most vital factors for credit unions today is choosing the right technology to communicate with members, generate loans, and increase the overall efficiency and functioning of your CU.

2020 has been an unprecedented year for businesses and financial institutions around the globe. Nearly everyone's bottom line has been affected by the pandemic, and credit unions, like all businesses, have had to be agile and adopt new practices in order to survive.

One area that has always been crucial for the profitability of credit unions (and now even more so) is lending. Credit unions that sustain profitable and healthy lending practices have a leg up on the competition and will be around for a while, and those that don’t, will run the risk of dying a slow death and ultimately weighing out their merger options. 

All over the world, the coronavirus has had a devastating effect on businesses and economies. Financial institutions have been no exception. One of the areas where credit unions have seen a decline in revenue is non-interest income. Traditionally, non-interest income, which includes income generated primarily by services and transaction fees, helps credit unions maintain their bottom lines.

One of the most important components of running a successful credit union is maintaining healthy relationships with your members. Credit unions that nurture relationships through two-way communication, and by providing members with the services they want and need, tend to thrive.

“Would you like fries with that?” If you’ve ever been to a fast-food restaurant in America, you’ve probably heard this question before and think little of it. But this is the art of cross-selling—selling or pitching an additional product to an existing customer based on their needs. And while it’s a commonplace practice, it’s not always as simple as it seems. Cross-selling involves knowing what your members want and need, and during these uncertain economic times, it’s become as important for credit unions as it’s always been for fast-food chains.

Collaboration and cooperation have always played major roles in the credit union ethos. One of the best examples of that philosophy in action is participation lending, which is when credit unions band together to back a loan to a single borrower. By doing so, credit unions can share the risks and rewards. For many credit unions, mitigating risk is vital, and so is the spirit of community that can be enhanced when rewards are shared.