Skip to main content

What should your credit union budget for in 2025?

As we enter the fourth quarter, many credit union leaders are starting to turn their attention toward planning for 2025. With a myriad of options and new technology, it’s crucial to prioritize services that set credit unions apart while encouraging growth.

In this article, we explore several key areas credit unions should consider when preparing their budgets for the coming year.

Expanding membership

One significant trend shaping the financial landscape is the exodus of big banks from rural communities. This presents a golden opportunity to expand membership to new communities.

However, this expansion doesn’t necessarily require traditional brick-and-mortar branches. Credit unions can leverage technology to provide services efficiently and cost-effectively. Some alternative service delivery methods include:

  1. Interactive Teller Machines (ITMs): These advanced ATMs allow members to interact with a live teller via video, providing a personal touch.
  2. Expanding ATM access: Branded ATMs, such as full-service drive-thru ATMs in parking lots of busy businesses, can play a crucial role in serving members’ basic banking needs and attract new members.
  3. Smaller, modern modular branches: These affordable, portable branches are versatile and durable and offer a quick and efficient way to market for credit unions moving into new areas or those wanting to cut costs and close traditional branches.
  4. Digital banking services: Beyond the mobile app, technology advances now allow credit unions to offer digital banking solutions that include live video, chat and virtual assistants’ members can access through QR codes.

By incorporating these technologies, credit unions can extend their reach without the substantial overhead of traditional branches, allowing them to serve members in new areas more efficiently. And by partnering with a reliable vendor expanding ATM access or adding ITMs, and digital banking solutions are affordable and don’t need to be time consuming for staff.

Enhancing branch efficiency with teller cash recyclers

For credit unions maintaining physical branches, investing in Teller Cash Recyclers (TCRs) can significantly improve operational efficiency. TCRs offer several benefits such as improved cash security, increased accuracy and speed, and freeing up branch staff to focus on personalized member service and cross-selling products and services.

Embracing virtual banking

To stay competitive, credit unions should consider incorporating advanced interactive technologies into their service offerings in 2025. Beyond the mobile app or the ITM, there are a variety of digital solutions like virtual assistants, mobile chat features, and QR code-based marketing available today.

Virtual assistants provide members with easy access to get answers to their questions 24/7. QR code marketing can generate faster connections with members. These handy codes can be used to quickly direct members to specific product pages or applications, providing instant access to promotional offers or facilitate easy sign-ups for new services.

However, QR codes aren’t just useful for marketing. They can also link to virtual branch solutions, which provide ITM-level capabilities without substantial capital investment. Some benefits include:

  • Video calls: Give members the personalized assistance they crave without having to come into a branch.
  • Live chat: Allow credit union representatives to offer financial advice or answer questions.
  • Translation services: Provide an easy way to speak to members that may not speak English as a first language without any miscommunication issues.
  • Advance level marketing: By using a customized QR code, marketing can direct consumers to loan applications and easily track the effectiveness of promotions.

By adopting these technologies, credit unions can enhance member engagement and provide convenient, 24/7 access to services.

Diversifying income streams

As interest rates remain higher, it’s prudent for credit unions to add non-interest avenues of income to their portfolio. Partnering with vendors that offer merchant services, smart safes and ATMs can open new revenue streams while providing additional services to business members, attracting new accounts and deepening existing relationships—without additional work for staff.

Leveraging NCUA grants

Low-income designated credit unions have a unique opportunity to access grants through the National Credit Union Administration (NCUA). These grants can be instrumental in adding ITMs or expanding ATM access—helping to meet the needs of a growing number of citizens.

Some independent ATM operators even offer valuable assistance in this area such as helping to navigate complex paperwork and, of course, handling the ongoing operation of ATMs and ITMs. This support can make advanced technologies more affordable for credit unions with limited resources.

As credit unions prepare their budgets for 2025, it’s essential to balance traditional services with innovative technologies and partnerships. By focusing on expanding into underserved areas, embracing interactive technologies, improving branch efficiency, diversifying income streams and leveraging grants, credit unions can position themselves for growth and enhanced member service in the coming year.

Remember, the key to successful budgeting lies in aligning financial decisions with the credit union’s core mission of serving members. By carefully considering these investment areas, credit unions can ensure they’re not just keeping pace with the changing financial landscape but leading the way in member-focused banking services.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Syracuse Fire Department Credit Union

Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

Happy Holidays To All Who Serve

  Happy Holidays To All Who Serve 12/22/2025 10:28 am   By Grant Sheehan and Anthony Hernandez Every year, many Americans celebrate the joy of family and relief from work the holidays bring. Apart from the hustle and bustle, the holiday season is a special time to be with loved ones, engaging in family traditions and rituals, and making memories that will last a lifetime. However, not everyone gets to partake in the holiday gatherings.   There are over a hundred thousand military members serving in harm’s way or in 24-hour command center...
Post a Comment
Read Complete Article HERE>»

Is another housing bubble brewing?

While there have been fears expressed by some of a repeat of the housing bubble that led to the housing crisis just over a decade ago, numerous real estate analysts say they believe the market fundamentals are much stronger now and that the sharp increase in home prices reflects low rates, a lack of inventory, and demographics. To be sure, the market is hot in many markets, with home sellers receiving multiple cash offers, often over the listed price, on homes. Some analysts, including those at Swiss banking giant UBS, have published charts showing how home prices are outstripping both wages and rents, reported USA Today. Home prices have appreciated more than 60% since November 2012, incomes have only appreciated by 20% and rents by 30% over the same time period, the report added. “But unlike the real estate boom that led to the Great Recession, this nationwide price spike is not being fueled by a wholesale collapse in lender ethics,” USA Today reported “There aren't any low-doc o...
Post a Comment
Read Complete Article HERE>»

Next Gen of Payments Could Leave ACH System Behind, Bank CEO Cautions

NEW YORK–The next generation of payments could leave the Automated Clearing House (ACH) system behind as stablecoins and tokenized deposits move into the banking core, according to one bank CEO. Custodia Bank CEO Caitlin Long said during a discussion with TheStreet Roundtable host Scott Melker that the “tokenized dollars are going to be big. Yes, there’s a distinction between tokenized bank deposits and stablecoins. Yes, right now, all the activity is in stablecoins, but we’re going to link the two in a safe and sound way.” During the discussion, Long cited Citi’s upgraded forecast for the sector, which now projects between $3 trillion and $4 trillion in stablecoins outstanding by 2030, according to Yahoo Finance, which noted Long believes even that range is far too conservative. “Those numbers are still too low,” she said. “I think they’re way too low.” According to Long, the innovation lies in embedding blockchain technology directly into the banking infrastructure rath...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - The gold standard, explained

  Gold Standard       The gold standard, explained A gold standard is a system where a country’s currency is pegged to, and can be converted into, a fixed amount of gold. It’s typically meant to create a sense of security in the country’s currency: When a government uses a gold standard , its currency can be exchanged for an equivalent amount of gold—although regulations around redemption vary by country.   After the Civil War, in 1873, America adopted the gold standard for the first time. At the time, if gold was priced at $100 an ounce, each dollar  rep...
Post a Comment
Read Complete Article HERE>»

Email and Text Message Etiquette

As we navigate our everyday communications, I want to emphasize the importance of practicing good email and text message etiquette. This enhances clarity and ensures that everyone feels respected and valued in our interactions. Email Etiquette: 1. Use a Clear Subject Line: A subject line that accurately reflects the content of your email will help recipients know what to expect. 2. Greet Appropriately: Start with an appropriate greeting, such as "Dear [Name]", "Hello [Name]," or "Hi [Name], which sets a positive tone. 3. Acknowledge Receipt: If you receive an email that requires a response, action, or information, please acknowledge its receipt. A simple reply confirming that you have received the email helps the sender know their message was received and provides an opportunity to clarify expectations. 4. Be Concise: Keep your emails clear and to the point. Avoid excessive details unless necessary. 5. Professional Language: Use respectful and professional l...
Post a Comment
Read Complete Article HERE>»

With Up to 30% of Workforce to be Laid Off, Union Says ACU Refusing to Engage; Says Portion of CEO’s Salary Could be Used to Maintain Jobs

N, Wis. – America’s Credit Unions, the trade group formerly known as CUNA prior to its merger with NAFCU, plans to lay off up to 30% of its workforce in Madison, Wis., according to the Office and Professional Employees International Union (OPEIU) Local 39. As CUToday.info reported earlier, the trade group filed a notice with Wisconsin’s Department of Workforce Development on January 12 of this year. OPEIU noted America’s Credit Union’s had cc’d Madison Mayor Satya Rhodes-Conway on the notice, adding, “This is a difficult decision, and we appreciate any assistance you may provide to our employees in this difficult period with their job search and transition.” According to OPEIU 39, America’s Credit Unions has refused to meet or provide any detai...
Post a Comment
Read Complete Article HERE>»

Home Prices Increased at Annualized Rate Near 20% in Q2

  WASHINGTON—Single-family home prices increased at the annualized rate of 19.4% in Q2, down slightly from the previous quarter’s upwardly revised 20.5%, according to Fannie Mae’s latest Home Price Index (FNM-HPI) reading. The HPI is a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the United States, excluding condos. On a quarterly basis, home prices rose a seasonally adjusted 4.3% in Q2 2022, Fannie Mae said. ‘Near-Historic Pace’ “Home prices maintained a near-historic pace of appreciation in the second quarter, as low levels of housing inventory continued to support price growth,” said Doug Duncan, Fannie Mae senior vice president and chief...
Post a Comment
Read Complete Article HERE>»

House Committee Passes Resolution Blocking CFPB's $8 Fee Cap on Late Card Payments

04/17/2024 08:40 pm WASHINGTON–The House Financial Services Committee has approved resolution H.J. Res 122, which blocks CFPB's new rule capping credit card late fees at $8. The rule was which slated to go into effect May 14. The committee voted along party lines, with the Republican majority carrying the 28-22 vote. The resolution will now go to the House Floor, where it is also expected to pass it, again most likely along party lines.   The Senate, which also has an identical resolution, presents a difficult but possible next step, as this kind of resolution only requires a simple majority, according ...
Post a Comment
Read Complete Article HERE>»

Many CUs Likely to Face New Operating Challenges "Michael Moebs"

04/08/2024 09:04 pm By Ray Birch LAKE FOREST, Ill.—The trend lines don’t lie: Financial institutions charging high overdraft fees will likely face operating challenges in the near future and may even be forced to merge if they don’t follow the market trend of lowering their OD charge. Michael Moebs, economist and chairman of Moebs $ervices, is offering that forecast following his company’s new overdraft study, which has found overall net OD revenue for 2023 was down 5.7%, with banks dipping by 8.1% to $31.4 billion, thrifts falling by 28.6%. and credit unions actually increasing net revenue 2.2%. The study further reveals the m...
Post a Comment
Read Complete Article HERE>»