TALLAHASSEE, Fla.-The economy should continue its steady improvement, but that doesn't mean CUs can rest easy the remainder of this year, especially around supporting passage of the MBL legislation and addressing threats to revenue streams.
That is advice from Jim Park, president of Credit Union 24, who says time is quickly running out to get the MBL bill passed. He said credit unions need to get behind CUNA's push now to get Congress to act, or potentially lose this chance to raise the MBL cap. "If this does not happen fast, if credit unions do not get mobilized around this bill, I'm not sure it ever will pass," cautioned Park. "Legislators are already in election mode, which means they do nothing, and it will only get worse in September. Then after the elections you have the celebrations, and then in March we have a whole new set of players. Then, do we really know where this bill stands?"
With potential sizeable cuts to interchange looming as the effects of Durbin trickle down to institutions below $10 billion in assets, and with the threat from alternative payments, Park said CUs have to devise plans now to increase debit transaction volume. Park also said CUs have to plan soon to get involved in P2P, or run the risk of losing members.
"P2P is something all credit unions will have to contend with," said Park, citing the recent move by Bank of America and Wells Fargo to go with P2P solution Send & Receive Money. "Wells Fargo and BofA make up about 40% of the banking market. That's a lot of people potentially using P2P. This is something that is not going away and credit unions have to be part of, whether it be via mobile or e-mail channels."
Park reminded that POS is a good way to drive additional transactions and revenue. "Get members to increase their use of POS. Show them how simple it is. I know that is an old message, but one that might not be bad right now."
For info: www.cu24.com