ARLINGTON, Va.—Confidence in the economy as well as the future of their own organizations declined during February, according to a new NAFCU survey.
NAFCU said its Credit Union Sentiment Index (CUSI) retreated from the prior month in all four components – growth, earnings, lending, and regulation, the trade association reported. The largest hit was found in the earnings index, with respondents who noted a negative outlook citing weak loan demand, rising operating expenses, and declining non-interest income, the trade group reported.
The index is based on NAFCU member responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden.
What About BNPL?
Separately, NAFCU's latest Economic & CU Monitor probed for responses related to buy now pay later (BNPL) products and fees imposed by providers of financial services.
Credit union respondents were asked about their own BNPL offerings, including whether they currently offer BNPL products to members or not, and plans for doing so. Common factors cited as the basis for not offering BNPL products included a lack of member demand, difficulty competing with established BNPL providers on price, and unclear regulatory expectations, NAFCU reported.
Feedback on Fees
Credit unions also shared additional perspectives on their future strategy involving common types of fees, according to NAFCU. A majority of respondents – 62% – indicated that they would plan to discontinue or reduce courtesy pay fees over the next one to three years. Additionally, a significant share said the same was true for nonsufficient funds fees.