Dollar: Where will CUs be in 2020?

NEWPORT BEACH, Calif. (5/14/08)--Where America's credit unions find themselves in 2020 will be determined by their vision in 2008 and the decisions that accompany the vision, said Dennis Dollar, former National Credit Union Administration (NCUA) board member, at the National Association of Credit Union Service Organizations (NACUSO) Annual Conference April 29 in Las Vegas.

In the future, credit unions will be the dominant community-based financial institutions in most communities because bank mergers will create more nationwide megabanks, Dollar predicted. The megabanks will lead to a disconnect with local citizens who seek a personal touch.

Credit unions also will dominate community banking sectors in the year 2020, Dollar added.

Other predictions for 2020:

• A risk-based capital system will be implemented to bring credit unions into the regulatory mainstream;
• Field-of-membership rules will still exist, but will be safety and soundness-driven;
• Credit union directors will face more fiduciary responsibilities requiring continuing education and some type of director compensation will be authorized for increased responsibility;
• Credit unions will retain federal tax-exemption status;
• Credit unions' political activism must continue;
• Credit union service organizations will exceed the number of credit unions;
• Credit unions will face greater regulatory pressures, and this will drive mergers;
• Credit unions will market cooperatively nationwide; and
• Shared branching will be a key credit union differentiator, with nearly all credit unions participating nationwide, thus reinforcing a national branding campaign.

courtesy of cuna.org