In a December 2013 growth estimate report released by the Credit Union National Association (CUNA), evidence shows that credit union’s loan-to-savings ratio has climbed above 70% for the first time since 2007. This report encouraged us to reflect back on our own lending services and see if LRRCU was on trend with the findings reported by the CUNA.
Savings Options Offered at LRRCU
Throughout 2013, LRRCU did not see a growth, or decline, in regular savings accounts while there was a decline in CDs. There are many factors that can can directly, or indirectly, effect this result. However, it is these findings that lead us to plan programs and events for the following year.
With CUNA’s senior economist Steve Rick foreseeing savings balances to increase 4% this year, and loan balances increasing 7%, we’re expecting to see a growth in LRRCU savings options, like: regular savings account, club and specialty accounts, youth accounts, and certificates and deposits.
Credit Union Lending Options Offered at LRRCU
With the surprising resurface of loans outweighing savings in credit unions nationwide last year, we were pleased to see that our credit union’s activity reflected that fact. With a marked increase in term loans to consolidate, or replace, credit cards and other types of revolving debt, this lending option is only the tip of the iceberg.
Additionally, we also saw members increase the use of secured credit cards to establish, or repair, credit scores. Our LRRCU Chief Lending Officer, Ian Cannon, shares that this type of credit union lending offered at LRRCU is unique. Secured credit cards do not require approval, is intended to establish and/or strengthen a member’s credit, and can lead to the ability for a member to qualify for other types of lending such as a mortgage.
We’re hopeful that the overall industry trends that are expected will trickle into LRRCU, so that we may continue to better serve you, our members. But now we want to hear what you have to say – what new services are would you like to see offered to members at LRRCU?