State of the credit union
Fifteen natural disasters have damaged properties, forced residents to flee and cost billions in property damage in 2017.
But, while most aren’t expecting assistance from their financial institutions (FIs), credit unions have shown that they are ready, willing and able to step up after disaster strikes — and work to help members piece their lives back together.
The latest PYMNTS Credit Union Tracker™, powered by CO-OP Financial Services, features news on changing credit union regulations and the latest innovation efforts in the market.
News from the credit union market
Bipartisanship in Washington, D.C., is a rare occurrence these days, but lawmakers recently managed to pull off a holiday miracle for players in the credit union market.
In early December, the Senate Banking Committee passed the Economic Growth Regulatory Relief and Consumer Protection Act. The legislation raises the annual stress test for credit unions, thereby reducing the number of FIs subject to financial scrutiny. It also includes a provision to exempt one-to-four unit, non-owner occupied residential loans from a member’s business lending cap, which could help credit unions free up $4 billion in capital for lending purposes.
Meanwhile, CO-OP Financial Services is urging credit unions to consider making their New Year’s resolutions include an emphasis on innovation in 2018. To that end, innovation will be the central theme of the company’s upcoming THINK 18 conference, currently slated for May 2018 in Chandler, Arizona. The conference will examine the potential of artificial intelligence to change the credit union market, among other innovations.
And, in the same spirit, one of the nation’s top credit union service organizations (CUSOs) wants credit unions to get on board with innovation early. The Credit Union National Association (CUNA) recently joined with the Association for Financial Technology (AFT) to help credit unions adopt FinTech innovations into their operations. The idea is to get credit unions to more rapidly embrace the same financial developments used by newer FinTech players.
How credit unions respond to disaster relief
Recent wildfires in California have forced thousands to flee their homes, caused billions in damage and, most tragically, claimed 43 lives.
When these disasters strike, Erin Mendez, CEO of Patelco Credit Union of Pleasanton, California, says credit unions must step up to help members get back on their feet. Patelco, which was directly impacted by the recent wildfires, is working to help its members rebuild by offering them relief following the calamity.
For the December feature story, Mendez spoke with PYMNTS about the credit union's efforts to offer members both financial and community support. To read the story, and find a roundup of all the latest notable credit union news, check out the latest Credit Union Tracker™.
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About the Tracker
The PYMNTS Credit Union Tracker™, powered by CO-OP Financial Services, serves as a bimonthly resource for staying up-to-date on the most significant trends and developments across the credit union market.