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