This article was originally published on NAFCU.org
Interest rates are up, banking brand trust is down, and credit unions need to concentrate on making 2024 a year of innovation and growth. To get there, prioritizing loan growth and digital optimization will play a crucial role in setting credit unions apart from — and ahead of — their banking counterparts. 2022 was all about the pending liquidity crisis and 2023 has had financial institutions knee-deep in how to turn the crisis around. It’s no longer a question of “how do we prepare for this” but instead “how do we grow from this.”
Inflation and interest rates have soared this year, hitting some of the highest numbers we’ve seen in over 20 years. While the Federal Reserve has slowed rate increases for 2023, all financial institutions have a long road ahead of them. Actively preparing for what’s next should be at the top of every credit union’s Q3 and Q4 list, as next year’s strategy will look dramatically different from years past. But one thing remains the same, everyone needs liquidity.
If you are a credit union preparing for your 2024 strategic plan, here are three key drivers to consider during the process. (continue reading here)