All around the country, credit unions are seeking the best strategies for moving forward. Since the pandemic has changed consumer behavior dramatically and things are unlikely to return to normal anytime soon, credit unions must adapt to the times and provide members with the services they now want and need. After all, credit unions were founded to serve their members. But to do so, it helps to understand current trends in the credit union world and the economy at large.

As the pandemic presses on with no clear end in sight and consumer habits continue to change, businesses are being forced to adapt to the new climate at a rapid pace. Although vaccines give reason to be optimistic, it’s unlikely the world will return to “normal” any time soon, and doubtful it will ever completely return to how it once was. Instead, the coming years will likely be trying for many types of businesses, including credit unions.

A hallmark of any successful organization is efficiency - being able to achieve the most, in terms of results, with the least amount of wasted effort or resources. When gaining new members, a credit union shouldn't have to add staff at an equal pace. Technology should support your credit union, allowing you to maximize the effectiveness of each team member. If credit union member growth is leading to exploding operating costs then you may need to take a closer look under the hood. 

Lending has always been fundamental to the growth and sustainability of credit unions, and during such dire economic times, it’s become even more important. In the past, lending was conducted in-person at branches and was often time-consuming and complicated for members. But the world has changed and the old ways of doing things are changing with it. These days, members want quick and easy digital lending options, and CUs that fail to provide these services risk being left behind.

Surviving 2020 was no easy task for all sorts of businesses, including many credit unions. Those that were most effective found ways to be efficient, cut waste, adjust to changes in consumer habits and continue to provide their members with the essential services they need and expect. After all, credit unions were founded on the principles of collaboration and supporting members, and no year has seen more people in need of support than the previous one.

There are a variety of key metrics and performance ratios that credit unions should familiarize themselves with when evaluating their yearly performance. By analyzing certain metrics like the efficiency ratio, loan originations per employee, loan to deposit ratios and the cost of technology per member (among others), CUs can get a better idea about how they are performing overall.

One of the biggest factors that can affect a credit union’s bottom line is how they use their core system technologies. An efficient core data processing system can help expand member services and attract new members while keeping the underlying costs of running the CU low. Credit unions that use a large number of vendors and third-party technologies often pay too much for technology and have less user-friendly platforms.

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.