Protecting deposits in a post-SVB world

“Unprecedented”, a recurring theme since the pandemic hit over three years ago. Even though many of the financial crises our industry has seen recently tend to feel unprecedented, they are evidence of a cyclical economy.

How can credit unions discern when an economic cycle can be ridden out and when it’s time to bulk up protection measures?  

The Silicon Valley Bank (SVB) collapse reinforced that it isn’t sound practice to neglect deposit growth and protection. The recent collapse, along with rising inflation compressing member savings and interest rates dampening loan velocity, are cause for portfolio diversification concern. Membership growth is at an all-time high in the credit union industry, yet deposits are not growing at the same speed. If this slow pace of deposits and lending growth are affecting your balance sheet, you aren’t alone. Ask yourself the following questions:

Does your credit union…

  1. Struggle to grow loans organically?
  2. Lack portfolio diversity?
  3. Feel stuck in manual lending processes?


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