Credit card balances are up 6.7% from June 2009.
Mark your calendars – as if you haven’t already – August 15 is the deadline for opt-in overdraft protection. Members who wish to have the credit union cover ATM and one-time debit card overdrawals must consent before Sunday (Correction from original post: Opt-in consent can take place via phone, mail, email, web or other electronic means.)
This and other financial reform can be institutionally inconvenient, but several organizations have offered ways to communicate the value of new legislation to your members. State Employees’ Credit Union in North Carolina used a member report to illustrate how it provided a $550 million+ annual benefit to its members and the state. The Federal Reserve offered a standard opt-in form for financial institutions (with a $30 authorized overdraft fee written in). And last week we suggested you write to your members and highlight the benefits of greater transparency. Yes, credit unions have plenty of ways to emphasize the merit of member-owned financial cooperatives.
So how is your member-owned financial cooperative performing this quarter? Before the NCUA releases its quarterly call report data you can access industry analysis and learn about trends through Callahan’s FirstLook program. According to the 7,434 credit unions that comprise our FirstLook data set, credit cards are one area of opportunity in the loan portfolio, as balances are up 6.7% from June 2009. Callahan analyst Nick Connors explores other loan segments with growth potential this week on creditunions.com.
Over the past few quarters, credit unions have had to content with excess cash. Seeing credit unions as a safe haven for their savings, members entrusted us with their hard-earned money. The spike in share balances is not an easy situation to maneuver. This week on creditunions.com, Too Much Cash. An Enviable Dilemma? looks at how two credit unions are approaching challenges in deposits, loan growth, earnings, and capital.