By John A. Vardallas
According to the Chinese Calendar, 2021 is the Year of the Cow, which is always displayed wearing a golden bell. The gold is a reference to finance and people will be watching their money very closely in the coming Year of the Cow.
The cow is part of the earth group related to farmland that helps crops grow and which brings life-sustaining happiness to people to help bring them together and foster relationships. So, each of us would do well to focus more on re-connecting with family/friends and taking care of each other as we move into the new year.
This year the global COVID-19 pandemic has forced many businesses and individuals to re-think and re-imagine the future. There will not be a return to normal—the new normal will be a re-set of our norms based on the lessons learned due to this worldwide health crises going forward.
In addition, the recent political elections/turmoil in the U.S. will cause more anxiety and marketplace uncertainty in 2021 and will bring about unsettling times.
More than ever 2021 will not be the time for credit unions to become conservative or play it too cautious. Credit unions have weathered the financial storm well this year. Our movement should capitalize even more of the steady success we have had this year and really focus on our differentiation as a member-owned local financial institution in the communities we serve.
We must be heroes to our members and keep demonstrating our mission/purpose and tell our “people helping people” story more, while also continuing to be the first financial responder and lifeline to our members’ financial needs.
The New Reset
The new reset in 2021 for credit unions will include:
* Giving members a strong members/values experience
* More exponential rise of electronic transactions 24/7/365.
* A continuation of staff working remotely from home
* More virtual staff/board training
* Continued virtual board meetings
* A rise in online inquiries and ordering
* Providing more members with financial assistance and counseling
* Dealing with unemployment among members and demand for small business loans
* Increased communication through social media
* Vigilant protection of employees and members
* Remote lending
Trends to Watch
Other trends to watch for representing increased business opportunities for credit unions in the new year include:
- Home equity loans for improvements (home offices, family caves, backyard landscaping)
- Loans for boats, personal watercraft, RVs, ATVs, campers, as Americans stay closer to home or choose to see the U.S.A.
- First (second vacation) home loans
- Pent-up desire for new auto loans in 2021
- Lower-rate credit cards with rewards
- Post-PPP member business lending
Finally, credit unions will need more cowbell in the year of the cow!
We should continue to be visible and promote who we are in supporting members’ needs and in the communities where we serve no matter what challenges will be faced by all. It may mean the difference between just surviving and thriving in 2021.
To be continued…..
John A. Vardallas is founder/CEO of The American BoomeR Group, a Madison, Wis. based speaking/business consulting firm. He is also Senior Faculty Advisor for Southwest CUNA Management School.