Four facts that may rock your world

I’d tell them they might not want to get too comfortable, because these four facts just might shake up their plans for the future:

1. Millennials now outnumber Boomers. 
According to the US Census Bureau, Millennials (born between 1982 and 2000) now number 83.1 million and represent more than a quarter of US population, while Boomers clock in at a measly 75.4 million. Which group will be more important for future loan growth, I wonder? Perhaps even more interesting, 44.2% of those Millennials are part of a minority race or ethnic group (other than non-Hispanic/white), and this trend promises to continue as over 50% of the youngest Americans (under 5 years) are as well. If your CU looks to grow, you probably need to build a strategy based on your future members, not their grandparents.

2. One of three workers is actually a freelancer.
As American companies continue to shed payroll and benefits costs, more people have turned to freelance, part-time and temporary jobs. Today, over a third of the workforce is independent, and experts are predicting that number to hit 40% by 2020. What does that mean to your bottom line? Your credit process for auto, personal and small-business loans may be obsolete and need to be modified to work for a member that freelances. It also means you are vulnerable to competition that understands this market. Companies like Uber are filling the gap on auto loans for people without great credit scores, approving their freelance drivers to not only buy a car through the company, but also making their monthly payments out of the fares they collect for them.

3. Equal rights come in a rainbow of colors.
With the SCOTUS decision, same sex marriages can no longer be outlawed by any state. Advocates will continue to push to add sexual orientation and gender identity to civil rights laws, in order to also protect LGBT individuals from discrimination. If you haven’t already, Credit unions and their CUSOs should review your processes, policies, and applications for potential conflicts. Marketing materials should be reviewed for both wording and imagery that welcomes all, not alienates some.

4. Pot-Biz banking is not only possible, it’s probable.
23 states have legalized marijuana for medical purposes. Four states and the District of Columbia have legalized recreational pot, and at least 10 other states are considering some form of legalization. It has been estimated that there are at least 2,000 to 3,000 dispensaries nationwide, plus untold numbers of growers, edibles manufacturers and other small businesses that have formed around the multibillion dollar, mostly cash-based, marijuana industry. The Treasury Dept. and Dept. of Justice have issued guidelines that say they would not target banks working with marijuana-related businesses that are legal and regulated on the state level, but since marijuana is illegal under federal law, financial institutions are still wary. Look for that to change, as potential tax revenues change politicians’ minds and the law. For now, if you live in one of the 27 states previously mentioned, your state-chartered CU might actually be well-positioned to help this market.

Social change happens. Sometimes (relatively) quickly. And while no Strategic Plan can foresee the future, it can be built with the flexibility to adapt.

Just be sure you go into the future with your eyes open.