No, we're not "tip-toeing through the tulips" with the Publisher/Editor-in-Chief of CU Times -- although, that would be quite a sight, indeed. We are actually discussing one of Sarah Cooke's recent columns ("Let 2015 Be the Year of Seed Sowing") about our industry's small credit unions not growing. According to Sarah's column, a whopping 54% of credit unions' memberships actually have decreased -- instead of all the "membership increase" news we've received over the last couple years.
It's definitely and eye-opener that doesn't bode well for smaller credit unions, which are now classified as $100 million by the NCUA. Sarah explains one scary scenario that these credit unions keep going back to the same daisy time and time again, plucking off petals until there are none left (hence our title). In other words, they are trying to repeatedly gain new business from established members who have already provided all the business they can. Once this happens, then what? Sarah has the answer.
We also discussed the CFPB going after payday lenders, which could, according to Sarah, hurt credit unions. What? Don't worry, she clarifies this circumstance. In addition, we discussed how more regulations with overdrafts and mortgage lending in 2015 will, again, affect our smaller credit union brethren. How do we help them? We bounce around a few possible solutions.
We finish on kind of a high note, talking about the potential growth opportunities within the industry. But, unfortunately, many credit unions being "pruned and over-fertilized" by regulators may stifle it this year. A must-see this episode is, so don't miss it!
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Mike Lawson, Host
Married to a most gorgeous and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple.