Leaders offer insight on economic factors impacting interactions with Members and Regulators

BOSTON – December 13, 2022:  Over 50 leaders from the nation’s leading Credit Unions joined Empyrean Solutions to share their insights on how shifting macro-economic trends are impacting their members and placing renewed importance on deposit analytics, liquidity risk measurement, and loan pricing.

The event, co-hosted by Zachary Crews, Senior Vice President Finance at Randolph Brooks FCU, presented data showing the economic shifts in recent months from a post-Covid rebound to a consumer base now being impacted by inflation and diminished savings rates.  These factors suggesting for Credit Union leaders a more cautious outlook as they plan their deposits (shares) and loan growth for 2023 and manage their overall risk profile.

Roundtable participants cited common themes impacting  both members’ needs and the informational needs of Regulators.  Notably, that deposit growth is largely stagnant and even decreasing due to members’ consumption requirements.  On top of this,  Credit Unions are experiencing accelerated loan growth connected to these same consumption needs.  As a result, participants emphasized the importance of providing equitable pricing for both deposits and loans in service of their members and cited the increased emphasis Examiners are placing on liquidity stress testing and other risk measurement metrics.

In concluding the 1-hour session, several participants described their use of Empyrean solutions for Deposit Analytics, Liquidity Stress Testing, and Funds Transfer Pricing (FTP) to support these efforts and to ensure the ongoing health of the Institution. 

To receive an on-demand recording of this Roundtable discussion or learn more about Empyrean Financial Risk & Performance Management solutions, please email sales@empyreansolutions.com