Members want it all ways. They want best-in-class, personalized and fast service in branch, and they prefer only to come inside the branch if they feel like it. If they are using DIY services, they want them to be user-friendly, intuitive, and efficient. New technology is flowing out all around us in everything we do, and it's reinventing the way we interact with the world and each other. If your credit union can't provide the services your members want today and tomorrow, they can find one that will with a few clicks of their smartphone. Don't let your core be the reason you can't keep up with the pace of innovation.

Ricky Nelson hosted a Garden Party and informed us "Ya can't please everyone, so ya gotta please yourself." John Lydgate, a 14th-century poet, is credited with "You can please some of the people all of the time, you can please all of the people some of the time, but you can’t please all of the people all of the time.” And 21st century phenom giphy.com has given us "You can’t make everyone happy.... you're not a taco.” Try harder, do more. While we all have a grasp on the concept, it’s very hard to put into practice in real life, let alone your credit union. The idea that we can appeal to everyone is difficult to let go of, as we see the value in the value prop: Serve every member your best, and then the credit union will have excellent growth. This sounds wonderful but, history has shown us, is not possible. In order to matter to the people you’re talking to, you have to show value. And value can be defined very differently depending on the person. So one generic message will never be the right message for all.

In the Chinese zodiac, 2019 is the year of the pig. Pigs are the symbol of wealth in Chinese culture, and they are thought to bring good fortune as well. For credit unions, these predictions hold true. 2018 certainly brought success and good fortune to CUs and that is expected to continue into 2019. For credit unions, 2019 will be year of the member. The credit union industry as a whole added 4.9 million members over the past 12 months, which led to 116.8 million total members as of September 30, 2018. This year, credit unions will be focused on building stronger relationships with members, and continuing to cultivate new ones.

After a year of triumphs and accomplishments, credit unions might be in for some new obstacles in 2019. Success often bodes controversy and that is expected to hold true for credit unions this year. While many institutions were able to grow their membership, loans, quality of assets and earnings, these successful steps forward might push lawmakers to enact limiting policies and regulations. Here are some hurdles credit unions can expect in 2019.

2018 was a prosperous year for credit unions across the United States, and FLEX credit unions were no exception. Over the course over the year, our clients have made tremendous efforts to implement resources and services that provide more value and improve member experience. Three credit unions really stood out, and we are excited to share their achievements and successes from the past year. Here are our “Credit Union All-Stars” from 2018.

Credit unions took initiative this election to support the people and policies that will continue to back credit union growth. According to CUNA CEO and President, Jim Nussle, credit unions invested $7 million in 338 different candidates during the 2018 midterm elections, which is the biggest contribution made by credit unions to date. These efforts helped elect a CU-friendly majority in Congress, and while this will help to advance some policy, other decisions will likely remain gridlocked. Here’s the impact credit unions can expect after a tumultuous 2018 midterm election. 

The loan-to-share ratio can be deceiving. It’s calculated by dividing the total amount of outstanding loans by the total amount of share deposits. While this ratio serves as a good indication of a credit unions liquidity, it also shows the level of risk a credit union is willing to take on. Generally speaking, credit unions with a high loan to share ratio are taking on more risk to increase their profits. At the end of Q2 this year, the national loan-to-share ratio reached an all-time high since 2008. On December 31, 2008, it was 83.2% but continued to decline from that point on until it bottomed out in 2013. Since then, the loan-to-share ration has been climbing, and 10 years later it’s finally back up to 82.9% as of June 30, 2018. While things are looking up for the nation as a whole, the loan-to-share ratios actually differ by state, with a few standouts:

There has been a great deal of discussion lately on the struggles of smaller to medium-sized credit unions. They face many challenges to remain on par with their peers, while not breaking the bank. However, the other side of the coin is the strength of the industry as a whole. Though 70% of the credit union population is composed of smaller credit unions, here are some numbers that illustrate basic performance facts of today's credit union industry:

Many Small credit unions are fighting an uphill battle to compete in the financial marketplace and to gain a better foothold. With recent numbers illustrating their decline in membership, assets and loan growth, it seems small credit unions have a blurry future. However, with an estimated 70% (4000/5684) of total operational credit unions classified as small (having under $100M in assets,) they represent a huge portion of the industry, and their struggles shouldn’t be easily dismissed.

Small credit unions have held their own in the marketplace for years, struggling at times to compete, but with extraordinary resourcefulness, have stayed viable.The latest report from the NCUA, however, provides some alarming data: Large credit unions are getting larger while smaller credit unions are, in fact, getting smaller. It's worth noting that while this is actually a long time industry trend, the strengthening economy has brought with it mounting challenges for smaller credit unions to stay competitive in the upcoming year.