According to the Chinese Calendar, 2025 is the Zodiac Year of the Snake! The snake is a symbol of the wise, charming, mysterious and subtle. Snakes enjoy learning new things and exploring different cultures. The snake brings a new influence that is more refined and elegant. The snake is clever and feared for its venomous bite however they can also shed their skin and renew themselves, symbolizing transformation and rebirth.
Like the snake, 2025 will give credit union leaders the opportunity to transform themselves and our credit unions into premier, locally-owned financial institutions by letting go of old habits and fixed ideas. This will be a time of great renewal!
And like the snake, credit union leaders will have to be critical, cunning, and ditch their gut and focus on data to drive key financial decision making that will impact members and the future of the credit union.
This year with a new presidential administration in Washington, the new normal will be watching the impact of new American leadership on the economy, interest rates, inflation, unemployment, the debt, consumer confidence and spending.
Many economic and finance gurus predict slow/modest growth for 2025.
Predictions are modest for most all indicators:
- GDP: 2%
- Unemployment: 4%
- Inflation: 2-3%
- Fed Interest rates 4-5%.
Credit unions will have to pay attention to see if rates fall steady and impact the slowing mortgage and auto loan markets and watch the ultra high consumer debt levels and its effects on members spending patterns.
(One reason this writer is a bit more optimistic about this years economy was the data on record levels of 2024 holiday season consumer spending/sales).
From an operational standpoint credit unions must expand and invest more in digital/virtual services and cyber-security initiatives to better serve members and preserve their financial assets.
2025 will also be the time to focus on more support for members and reaching out to and acquiring younger next generation credit union members.
Transforming the credit union in offering flexible and easy accessible products and personalized services and rapid decision making for members will be a must utilizing new technologies and systems.
In addition, credit unions must continue to add value to the community by showing that credit unions do make a difference. Financial counseling, green initiatives and community service outreach involvement will continue to show the relevance of credit unions in the communities they serve.
Some trends & strategies for credit unions in the new year to focus on:
- More onboarding of new members/focus on joint accounts
- More adoption/using artificial intelligence for more productivity
- Increasing use of data analytics
- More member transactions via mobile apps
- Investing more in IT/data/security/identity theft systems
- Creating succession for staff/boards
- Continue demonstrating CU Difference/people helping people philosophy
- Crafting customized loans for members
- Prepare for member pent-up desire for new vehicle loans
- Consider member business lending green loans (solar/home/commercial/community/Hybrids and EVs)
- Increase social media activity channels to reach out/stay connected/promote new products/services to current & new members
Most important, like the ambitious snake during this year of tremendous challenges and new opportunities, 2025 will give credit union leaders the ability to use their wisdom, creativity and intuition to explore new directions and be inspirational by setting ambitious goals, strategies, and working towards successful outcomes all in the best interest of members.
Happy New Year!
