From impactful conferences to vital legislative updates and economic forecasts, it’s been an eventful week for NY credit unions. Read this week’s roundup for insights into the events shaping our industry and a preview of what’s coming up on the horizon.
2023 CEO Roundtable: Navigating the Future of Credit Unions Together
Currently underway is our annual CEO Roundtable for Credit Unions, specifically tailored for those with assets up to $100 million. This gathering presents a unique platform for New York credit union leaders to exchange ideas and drive the movement forward. Highlights include Kwame Smith from TruStage discussing the significance of “internal mobility” for cultivating leadership excellence. Shawn Temple also led an insightful session on whether credit unions are aptly positioned for the future. Between strategic discussions, TruStage updates, and roundtable dialogues, the event promises a dynamic mix of information sharing and collaborative strategizing.
We’re in full swing of industry events this year! See our event calendar for more credit union conferences, webinars, and more.
Another Successful Volunteer Leadership Conference
The 2023 Volunteer Leadership Conference was a meaningful gathering for all who attended. Held at the scenic Turning Stone Resort Casino, credit union board members and volunteers from across New York came together to share and learn. One participant noted, “I really got a sense of the volunteerism and how everybody’s enthusiastic about helping their community.”
We’re grateful for everyone who joined, from those well-acquainted with the credit union movement to those new to it. Thank you for making it memorable. We look forward to seeing everyone in Saratoga this June 13-16 for EXCEL 24!
Credit Card Rewards Points Legislation Effective Dec 10
By: Mitchell B. Pollack, Attorney at Law
Mitchell Pollack & Associates PLLC
New York General Business Law § 520-e will go into effect as of December 10, 2023, requiring advance notice of changes to credit card accounts and related rewards programs. Any modification, cancellation, closing, or termination of a credit card account or rewards program requires a minimum of 45 days’ notice, to the holder. The holder will then have 90 days from the issuance of the notification to redeem, exchange, or otherwise use the credit card points or rewards.
The term “points” is broadly defined as “denominated units that can be accumulated in an account with a credit card rewards, loyalty or another incentive program…or for certain travel-related rewards as miles…” and likely applies not only to the credit card but also to the rewards program associated with the credit card, such as those tied to hotels and airlines. The statute defines “modified” or “modification” as (i) a change that results in the elimination of points; (ii) a reduction of value in points; (iii) manipulating the ability of a holder to gain points on the account; (iv) reducing any availability of rewards; (v) limiting the use of said points or credit card account; (vi) diminishing the holder’s value of the rewards program or credit card account; or (vii) amending the obligations of the holder in relation to the rewards program or credit card account. While the new law exempts cases of “fraud” or “misuse,” these terms are not defined by the statute.
In the second installment of this article, we will answer some commonly asked questions regarding the statute’s application.
TruStage’s Economic and Credit Union Forecast Highlights
Earlier this month, we shared key takeaways from the latest credit union trends report. For this week’s roundup, we’re diving even deeper into TruStage’s economic forecast to help credit unions plan for the year ahead and anticipate what their members will need. Here’s what you need to know.
The U.S. economy is projected to grow by 2.0% this year, an upward revision from the initial 1.0% prediction, primarily driven by a robust labor market that has displayed resilience amidst aggressive Federal Reserve rate hikes. Inflation has also shown significant improvement, with the June Consumer Price Index at 3.1%, a stark decrease from its 8.9% peak in June 2022. A continued decline is expected, with CPI projected at 2.5% for 2024.
For credit unions, recent data presents opportunities for supporting members. Savings growth is expected to stagnate in 2023 before rising slightly to 3.0% in 2024. Loan growth is forecasted to drop from 7.0% in 2023 to 4.0% in 2024. Delinquency rates will likely rise from 0.61% in 2022 to 1.00% by 2024. Additionally, ROA is projected to decline from 0.88% in 2022 to 0.65% in the next two years.
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