How to grow core deposits for your credit union
Past financial trends shape how credit unions grow in the present and future and the tumultuous ups and downs of the economy, world events, and interest rates over the past 20+ years has created an environment today where it’s crucial for many institutions to reexamine their strategy to ensure long-term stability through growing core deposits.
It’s too early to say exactly what the “new normal” will look like for local credit unions, but we can project some trends with confidence.
- Rising rates will put a spotlight on core deposits and other low-cost funding sources.
- Higher rates may dampen loan demand in the short to intermediate term.
- There will always be demand for loans for essential purchases like cars and homes.
- Local financial institutions may need to refocus their strategies in light of diminished loan demand.
