You Don’t Need the Luck of the Irish to Make Informed Decisions

We want to make sure the decisions we make are based in reality and as informed as possible, and we want the same for you.

 
 

Industry Insights readership originates more than 90% of the industry’s auto loans. How do we know this? Data. We want to make sure the decisions we make are based in reality and as informed as possible, and we want the same for you.

Addison Avenue FCU ($2.5 billion, Palo Alto, CA) and First Tech CU ($2.2 billion, Beaverton, OR) are the talk of the town after their merger announcement. By now, you’ve likely read about how the merger is the largest in credit union history, about how the credit unions both have a tech-savvy membership, or about the benefits and drawbacks (and reactions to both) of the merger. What you likely have not read is a discussion of what kind of credit union might emerge from the union. Judging by an apples-to-apples comparison of the institutions’ financial, operational, and member data, First Tech FCU will be a formidable entity indeed.

It should come as no surprise the credit union executives we talked to at the GAC said consumer lending is a major initiative for 2010. Auto lending still stakes a claim as the bread-and-butter of the industry. What might surprise you, however, is how credit unions quickly accommodated a shift in consumer demand last year. Although new balances declined in 2009, credit unions responded by growing used auto loan portfolios 3.9%.

You might not be concerned with the changes Regulation E introduces, but the new legislation will likely impact the industry to the tune of $3.25 billion. That’s a lot of latte. In February, we surveyed more than 150 credit unions about their non sufficient fund fees and courtesy pay practices. Don’t complete your policy for overdraft protection and opt-in outreach until you’ve read our preliminary analysis of the survey’s results.