If Recession Hits, CUs Should Not Feel Much Effect, New CUNA Forecast Says

WASHINGTON—Should a recession occur, credit unions won’t feel the effects all that deeply, according to a new forecast from CUNA.

Ligia Vado

Senior Economist Ligia Vado shared that prediction and made other projections in her October 2022 CUNA Economic Update.

“Members’ healthy financial conditions is one of the most important reasons why, if indeed there is a recession next year, its impact on credit unions will be much less severe,” Vado said

Other points made in the forecast:

Economic growth predictions. Vado projected that the economy will grow 0.3% in 2022 and no growth in 2023
Yield curve inversion. “The inversion of the yield curve since July signals a recession within six to 12 months. CUNA forecasts a ‘relatively mild’ recession in the first half of 2023,” she said.
Pressure on credit union margins. Increased interest rate risk, higher operating expenses, reduced consumer spending and lower levels of income from mortgage refinancing will affect bottom-line growth.

The CU View

For credit unions specifically, Vado is forecasting:

Loans outstanding will grow by 18% by the end of the year, the strongest in over 35 years
Savings growth will be 3.5% in 2022, among the slowest in the last 40 years
Record low savings growth and historic loan growth will result in lower credit union liquidity levels and challenges

11/21/2022 CUToday

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Guardians Credit Union Moves Management Of Its ATM Fleet To Dolphin Debit

WEST PALM BEACH, Fla.—The $306-million Guardians Credit Union has turned management of its ATM fleet over to Dolphin Debit . Minire Syla The credit union has four ATMs at branches and 10 at various select employee group sites. The decision was a big move for Guardians, which had always managed its own ATM fleet, the CU stated. “Dolphin stood out because of their experience, reliability, and the fact that they could truly take the burden off our staff,” said Chief Financial Officer Minire Syla. “Their ability to manage everything seamlessly, combined with the marketing opportunities on ATM screens, made them the best choice for us.” The credit union said it had a number of key priorities for the move, and Syla explained that while reducing the burden on staff, compliance, and cost savings were all important, what was paramount was providing “the best possible experience for our members.” “The convenience and reliability of our ATMs are crucial and outsourcing to Dolphin...

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Lucky 7s: CU SoCal Intro’s 7% Share Certificate With 7-Month Term

ANAHEIM HILLS, Calif.–Credit Union of Southern California (CU SoCal) has introduced a 7% APY share certificate with a seven-month term. “Designed to help members grow their savings, this high-yield certificate offers a strong return on a manageable deposit—capped at $7,000,” the credit union said. “Available from April 3 through May 31, it’s an ideal option for those looking to make the most of their money, even with a smaller investment.” There is a $1,000 minimum opening deposit, a limit of one per member, and new money is required. ‘Excellent Opportunity’ “We designed this certificate to help more members benefit from a great rate without the need to lock up a large sum of money,” COO Suzie Kisslan said in a statement.. “This is an excellent opportunity for savers to make their money work harder in a short period of time.” The $2.89-billion CU SoCal has approximately 155,000 members.

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Celebrating 40 Years Of Credit Union Impact

From shaping the industry’s approach to data to framing the conversation around key industry issues, here’s a look at the impact we’ve made — and what’s to come Aaron Passman Let’s take a trip back in time. It’s Monday, April 1, 1985. You’re headed home from work at the credit union, one of more than 10,000 nationwide. You’re sitting behind the wheel of a Chevy Cavalier — the top-selling car in America at the time — with “We Are The World” piping out of the speakers. Not surprising, as it’s the No. 1 song in the country. You’ve got to make a stop at the grocery store, where the price of eggs has dropped to about 50 cents a dozen — roughly 20 cents cheaper than one month prior — but you’re already starting to think ahead to the weekend. Maybe you’ll head to the theater for “Police Academy 2,” and see what all the fuss is about — after all, it’s the most popular movie in America. But tonight you’re planning to sit down for the NCAA championship game to see whether Villanova can pull off ...

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Zelle Discontinues Standalone App, Shifts Users to Bank and Credit Union Platforms

SCOTTSDALE, Ariz.—The standalone Zelle app is no longer available for sending or receiving money. Users are now encouraged to enroll through a participating bank or credit union’s app to continue using the peer-to-peer payment service, PYMNTS reported. Zelle had announced in an Oct. 31 blog post that it would make this change, and it completed the move as of Tuesday (April 1), according to a frequently asked questions page on its website PYMNTS said/ “More than 2,200 banks and credit unions across the U.S. now offer Zelle through their mobile app or online banking site,” the company said on the FAQ page. “As a result of this growth, in October of 2024, we announced that we are removing the ability for users to send or receive money using the Zelle app starting April 1, 2025.” PYMNTS noted that the page advised users of the Zelle app to visit a “find your bank” page on its website to see if their bank or credit union offers Zelle; to...

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