Musings from the CU Suite

Written by Anthony Demangone

Last week, many of you furiously answered my survey to list your credit union's largest challenges. 

Here they are.

The chart is both predictable and surprising. 

What's predictable? I think we could all guess that regulatory burden, loan growth and income would be large challenges. 

What's surprising? Outside of the top three challenges, everything else falls off a cliff. It's almost like the Sochi Olympics. If you didn't make the podium, no one knew your name. 

Here's a link to a high-density version of the chart, which will allow you to see even the smallest of challenges, such as technology, culture and competition. 

My hope? That NCUA, the CFPB and Congress somehow digest this chart. The economy, coupled with an ever-increasing regulatory burden (much of which dissuades lending), has America's credit unions caught between a rock and a hard place. 

The rock. Credit unions need more income and more loans. Yes, we are not-for-profits. But we must take in more than we pay out. The economy is on the mend, but we aren't where we need to be.

The hard place. We'd love to make more loans, but so much of our time is taken up organizationally by compliance. Forms. Policies. And many of the new regulations make it harder to grant loans to our members. It is hard to run a business when you are constantly adapting to curve balls thrown at you by Washington and Alexandria. Creativity? Many executives tell me they are focused on survival. 

On Thursday, I'll discuss the results of the survey as they relate to credit union employee challenges.  The results are both depressing, and full of hope. 

Have a great week, guys.