ARLINGTON, Va.—After a rebound in confidence in the economy and their CU’s performance in January, credit union leaders’ faith in the future dipped last month.
NAFCU’S Credit Union Sentiment Index (CUSI), an index based on NAFCUs members’ responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden, fell slightly in February.
The outlook for growth outlook saw the biggest drop, with respondents citing increased competition as the top issue restraining their optimism. The lending outlook also fell, while the executives’ forecasts on earnings and regulation saw slight improvements from January.
The Pandemic’s Effect
Separately, NAFCU's new Economic & CU Monitor report also offers updated insights into how the pandemic has affected credit unions' branch operations and member trends related to using online and mobile banking options.
Compared to a 2013 NAFCU survey that revealed only 18% of credit union members used mobile devices to access their financial accounts, respondents in the most recent survey said 50% of members use their institution's mobile app. In addition, the survey found CUs saying 29% of their members now manage their finances exclusively through mobile or online accounts.
Respondents indicated their credit unions are investing in technology to keep up with member trends: 53% are considering enhanced peer-to-peer payment options, and 38% are looking at faster payments functionality.
Branch Expansion Plans
While the adoption of digital banking has increased, credit unions are remaining present in their communities, according to NAFCU. Over the next two years, 39% of survey respondents said their credit union plans to expand their physical branch network and 43% plan to maintain their current setup. Roughly 38% of credit union members, on average, use branches and ATMs exclusively to manage their finances, according to respondents.