Our Insights articles are explorations of strategy, organizational structure, merger, and leadership and succession trends affecting credit unions and credit union leaders. Expand each article headline for a summary and link to the full article content.
Apparently we have a problem with communication. If you google the word, the first page of results seem to all lead to methods for fixing communication problems. Look to the top book titles involving communication. They all offer tips for better communication. In fact, according to a few of the search results and published resources, “faulty communication causes the most problems.” We’ve been talking, as the human race, for thousands of years. You would think by now we would have figured this out.
Leveraging Core Competence
Is your credit union competent? Can that competency be leveraged? We would argue that few credit unions have maintained a level of competency that can be leveraged. While credit unions are mostly good at what they do, the reality is that competence is watered down, with divergent areas of focus and strategy competing for time, energy and financial resources.
The Harmony in Alignment
Consistency is the hallmark of successful brands. Enduring brands consistently supply their products or services to consumers. I think of McDonalds, Southwest Airlines, Starbucks and other companies that deliver the same experience no matter the location, route, or store. No doubt, there are times when these brands stumble, or profits flag, but companies of this type find ways to survive and outperform peers regularly. Consumers love consistency, and arguably these brands are loved for the consistency they promise, and deliver, to consumers.
Indirect Lending Trends
You would think that indirect loans are a staple of every credit union loan growth effort, but the fact is that only about 36% of all credit unions engage in indirect lending. And for those credit unions - what an interesting ride the last two years have been.
Q4 2020 HealthScore Update
The current credit union industry HealthScore, updated to include 4th quarter 2020 credit union performance data, is 6.081. The latest score represents a 3.3% year-over-year improvement. Driving improvements are th`e continued stimulus-driven increases in the asset growth scores, and increases in scores related to credit quality. Despite the overall score improvement, substantial concerns remain as a result of lingering COVID-inspired economic issues that continue to pressure earnings, net worth, and loan growth-related component scores.