News & Insights

Since the Fed began increasing the fed funds rate 11 months ago, credit unions across the country have been heavily impacted by the rapid ascent of interest rates. Credit unions experienced some benefits to the rise in rates, but challenges emerged as well. Therefore, it is no surprise that interest rate risk (IRR) tops the list of NCUA’s 2023 Supervisory Priorities.

In the digital banking era, credit unions can’t afford to be reactive to members’ financial needs in everyday life, given the rising competition of fintechs and neobanks, as well as traditional bank competitors. And being proactive doesn’t mean spending a ton of money to build out a stand-alone digital credit union or reorganize the entire operation.

In the U.S. payments industry, 2023 will be a significant year for “instantaneous” payments, and Catalyst Corporate will be actively involved in supporting credit unions’ needs through it all.

Think about interest rates the last 10 years before 2022. The world spent almost the entire 2010s decade in a zero or near-zero rate environment. Fast forward to 2022, and the FOMC has raised rates more than 4% in less than 10 months. After witnessing record mortgage refinances throughout 2021 due to record low rates, in under a year, credit unions were then facing worst case scenarios.

Investing in subordinated debt may offer an attractive yielding asset for your credit union’s balance sheet. Prior to investing in subordinated debt, however, it is important to perform thorough due diligence. Five key areas can help your subordinated debt investment analysis: growth trends, loan quality, earnings capacity, liquidity and planned use of the funds.

Typically, when you see a “crasher” at an event, your first thought might be: “Why are they here and how do we get rid of them?” Not so in the credit union industry. Credit unions are a prime example of true collaboration. We encourage professionals to crash our events – especially those who are uniquely positioned to bring fresh perspective and new ideas to credit union discussions.

Catalyst Corporate hosted four Young Professionals as “crashers” at their annual Economic & Payments Forum last month. The Young Professionals participated in anLeft to Right Wendy McKune, Jessica Wilson and Dezirae Bates application process and explained what would  make them a great fit to be crashers at the event. Out of many applicants, Financial Risk Management Supervisor Jessica Wilson and Support Services Representative Wendy McKune from AltaOne FCU emerged as winners.

It is not every day that a Young Professional (YP) gets to enjoy the same space as C-suite employees, learning and engaging in seminars filled with CEOs, COOs, CFOs and other passionate credit union leaders. In retrospect, I realize how privileged I was to attend Catalyst Corporate's 45th annual Economic & Payments Forum.

Catalyst Corporate reaffirmed its commitment to Cybersecurity Awareness Month (CAM) as a Champion participant for the seventh consecutive year. Founded in 2004, Cybersecurity Awareness Month, held each October, is the world’s foremost initiative aimed at promoting cybersecurity awareness and best practices.

Over the second quarter of 2022, interest rate risk has seen pronounced movement, with many credit unions concerned about the impact on the NEV Supervisory Test. The 0.75% increase in the Fed Funds Target Rate at the June Federal Open Market Committee meeting, due to a hot CPI print, came to the markets somewhat unexpectedly (another followed in July).