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.

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.

The coronavirus pandemic has transformed how we conduct business all over the world and few sectors of the economy have been influenced as much as the financial industry. As people look for ways to avoid having in-person experiences, many are turning to digital wallets and other online banking solutions. Although the pandemic won’t last forever, it’s likely that this trend towards technological solutions in banking will continue. 

Having the right core processing system is one of the most important components of running an efficient credit union. However, sometimes it feels like technology is evolving at such a rapid pace that it’s hard to keep up. Also, the task of changing core processing systems can be complicated and time-consuming. These are just a few reasons many credit unions continue to use outdated core systems.

Developing a strategic plan is often a major project requiring the input and work of multiple people throughout your credit union. From analyzing the prior year’s successes and shortcomings to setting new goals, objectives and the actions required to meet them, the strategic plan provides the roadmap to get your organization from point A to point B – efficiently and effectively. Or so you thought.

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.