L (Liquidity)

Liquidity

Health Savings Accounts to Grow Exponentially

Caroline Hroncich, in a September 3, 2019 article in benefitnews.com, writes that HSAs are expected to surge in coming years – perhaps becoming the IRAs of the future.

The big question for credit unions is the extent to be involved in services such as HSAs and how should they be priced and managed to assure Interest Rate Risk and profitability is managed appropriately.

Inverted Yield Curve- Ominous or Business as Usual?

Brian Chappatta in an August 14, 2019 article in thinkadvisor.com reports why he thinks the recent yield curve inversions are an ominous sign for the economy – and for financial institutions.

Financial institutions should be carefully monitoring Interest Rate Risk in their investment and loan portfolios so the next recession does not impact them as the 2008 recession did.

Tech-Savvy Young Americans Still Like Branches

An August 5, 2019 article in bankrate.com, written by Mary Wisienski, reports that young Americans still like branches to transact income-generating banking business like loan applications, mortgages, etc.

Financial institutions may need to reconsider cutting back on their brick and mortar branches if they wish to maintain a competitive edge with consumers.

A New Study Indicates What Makes Members Switch Financial Institutions

Tina Orem, in a July 26, 2019 article in cutimes.com, reports that consumers are more likely to switch financial providers if certain conditions exist. Input from friends and family ranks high as does honest disclosures of fees, services and rates.

Credit Unions' Overdraft Revenues Dip for First Time in 5 Years

Tina Orem, in a July 1, 2019 article in cutimes.com, reports that overdraft fees for consumers may have hit a breaking point.

How's Your Liquidity? NCUA Will Be Checking

Reginald Watson, Regulatory Compliance Counsel, NAFCU in a recent nafcu.org article writes that NCUA will be focusing on Liquidity during 2019 audits.

Too much Liquidity or too little Liquidity can be detrimental for credit unions. They should focus on having just the right amount of Liquidity.

Personal Service May Not Assure High Member Satisfaction

Tina Orem in an April 22, 2019 article in cutimes.com reports that “digital only” financial institutions have higher customer satisfaction than institutions that rely on traditional service delivery methods.