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Join MnCUN and Inclusiv for an interactive webinar where we’ll explore why clean energy lending matters for both communities and your credit union. It’s a great chance to see how clean energy projects align with your mission, provide value for your members, and promote sustainable growth.
What to Expect:
Whether you're just curious or ready to take action, this session will offer valuable insights and practical takeaways! The webinar is free to attend but we ask that you please register. This article is provided through MnCUN's partnership with TruStage. For more information to maximize this partnership, visit the Solutions Directory.
A new study reveals that 39% of consumers plan to purchase life insurance in the next 12 months, and a high percentage of those people could be, surprisingly, Gen Z. TruStage spoke with CUToday.info about this growing non-interest income opportunity for credit unions, but added Gen Z will need a little push from cooperatives to secure this business. Citing data from a 2024 LIMRA survey, Samantha Ziesemer, director of digital storefront product management at TruStage, said it’s a great time for Gen Z to consider life insurance, due to locking in a premium at a lower rate, “This is a good opportunity for Gen Z, but, unfortunately, Gen Z may not be understanding this,” Ziesemer said. “An insurance trade association survey in 2023 showed a surprisingly high number of Gen Z respondents that said they were interested in buying life insurance, and were planning to buy it in the next five years. But when asked a follow-up question—‘Why haven't you?’—37% responded they just haven't gotten around to it. That's the problem.” Ziesemer said the issue for credit unions is how do they position their life insurance offering in a way that is engaging with Gen Z, and so they better understand the different life insurance products available and consider taking the next step. “We were surprised by the number of Gen Z who responded they were planning to purchase life insurance,” acknowledged Ziesemer. “When we think of younger demographics, there's kind of an oversimplification. We think, well, they're not thinking about their own mortality or legacy planning. This isn't going to be top of mind. But now we know it is.” What is driving greater interest among Gen Z in purchasing life insurance over the last two years, Ziesemer said, is growing economic insecurity. By Steve Rick, Chief Economist for TruStage™. This article is provided through MnCUN's partnership with TruStage. For more information visit the Solutions Directory. As we look ahead to 2025, the economic landscape presents a mixed but cautiously optimistic picture. Although overall growth is expected to be moderate, with a 2% gross domestic product (GDP) increase—slightly lower than the 2.4% growth this year—there are several key trends and economic factors to consider. It should be noted that a change in presidential leadership could lead to economic shifts in 2025, driven by key policy decisions such as universal tariffs, immigration reform, tax cuts and deregulation. These policies could impact inflation, GDP and deficits, creating both opportunities for growth and challenges to economic stability. Let’s explore the implications of inflation, interest rates, consumer behavior, and the labor market on the US economy and credit unions. 2025 inflation and interest rate predictions The primary factor influencing the 2025 economic outlook is the persistence of high interest rates. Despite slight decreases, the Federal Reserve's interest rates remain above the desired neutral level. These elevated rates will likely dampen economic growth, slowing overall activity to around 2% GDP growth in 2025. However, the higher rates are not expected to trigger a severe recession, as consumer spending remains resilient. Inflationary pressures are expected to continue, though some relief may come through deregulation policies. Lowering regulatory burdens on small businesses could reduce costs, enhance productivity, and, over time, help curb inflation. 2025 Consumer Price Index (CPI) and real Gross Domestic Product (GDP) predictions In terms of GDP, there’s a projected growth rate of 2% in 2025, slightly below this year's 2.4%. This moderate growth aligns with long-term trends but reflects the restrictive impact of high interest rates. Consumer spending is expected to remain robust, supported by healthy debt-to-income ratios and rising real wages, which should continue to buoy confidence in the economy. However, high inflationary expectations and rising treasury yields will help keep pressure on consumer prices and economic activity. Deregulation could play a key role in stimulating the economy by helping to reduce unnecessary compliance costs, particularly for small businesses. This, in turn, could help reduce inflationary pressures and increase overall productivity, leading to stronger GDP growth in the long run. Unemployment and job market
The current unemployment rate stands at 4.1%, with part-time work on the rise while full-time job growth has plateaued. The tight labor market poses challenges for credit unions, particularly in relation to loan repayment. Many members face financial stress due to stagnant wages and high living costs, and part-time work may exacerbate this issue. Credit unions must stay alert to these trends and offer solutions that help accommodate the changing workforce. Mortgage rates and housing market The housing market is facing significant challenges, particularly due to rising mortgage rates. The 30-year mortgage rate has climbed to around 6.92%, and in some cases, even surpassed 7%. These increases have caused many potential homebuyers to adopt a wait-and-see approach, hoping for lower rates in the future. This slowdown in housing activity could reduce mortgage loan growth, affecting credit unions’ lending volumes. However, with interest rates holding steady or continuing to rise, we may see further delays in housing transactions in the short term. Impact on Credit Unions Credit unions are facing a mixed outlook as they navigate the economic challenges of 2025. Loan growth is forecasted to reach around 6%, a slight rebound from this year’s 3%, but still below the long-run average of 7%. Higher interest rates will continue to limit lending activity, particularly for mortgages and personal loans. However, credit unions can help mitigate this by focusing on areas where they can provide more value, such as offering support to members dealing with financial strain. Delinquencies and charge-offs are expected to remain a challenge, particularly with younger members struggling under the weight of high student debt and rising rent costs. Car insurance premiums, which have surged by 30%, are another strain, leading some members to reduce coverage and increasing the likelihood of repossessed vehicles being in poor condition. This trend could lead to more charge-offs for credit unions. Supporting credit union members in 2025 To address these challenges, credit unions can explore various strategies to assist their members. Offering flexible loan products, such as payment programs for struggling borrowers, will be critical. Stay flexible in offering personalized solutions to members, helping them adjust to the changing job market and economic conditions. Additionally, providing financial counseling services can help members manage their debt and make informed decisions. It will be important to support younger members, who are particularly vulnerable to financial stress, by offering tools to manage student debt and rising living costs. The 2025 economic outlook suggests a year of moderate growth, tempered by high interest rates and inflationary pressures. While these challenges will certainly affect credit unions, there are opportunities for them to play a pivotal role in supporting their members. By offering flexible loan products, financial counseling, and proactive support programs, credit unions can help their members navigate these uncertain times. The views expressed here are those of the author(s) and do not necessarily represent the views of TruStage. TruStage™ is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis. © TruStage The Minnesota Credit Union Network Benefits Plan covers in-network preventive care at no charge to you. Your annual physical could be the best money you didn’t spend this year! Preventive Care is the stuff you do (before you get sick) to stay healthy! It can help you stay healthier and, as a result, lower your health care costs.
What’s considered preventive care?
What should I expect at my medical preventive care visit? Most preventive medical exams start by talking about your health history and any problems. Then you’ll discuss topics like:
What is not considered preventive care?
Talk to your doctor Consult with your doctor about preventive health recommendations. The services in this flyer do not necessarily reflect the services, screenings or tests covered by your benefit plan. To find an in-network provider, visit medica.com/prevention or call the member phone number on the back of your ID card. TruLync Medicare Advisors Saves Minnesota Credit Union Members $183,000 in Premiums in 20241/15/2025
In 2024, TruLync Medicare Advisors helped over 750 Minnesota credit union members. During the fall open enrollment alone, they saved $183,000 in annual premiums for member across the state. As a subsidiary of the Minnesota Credit Union Network (MnCUN), TruLync partners with over 8 Medicare insurance providers to guide members in selecting the best Medicare plans. Since launching, the program has saved members $500k in annual premiums. Participating credit unions grew from 7 to 35 in 2024, with MY Credit Union, Minnco Credit Union, Mid Minnesota Federal Credit Union, and North Memorial Federal Credit Union leading the way in offering this new service to their members.
"Thanks so much for encouraging MYCU members (who qualify for Medicare), to meet with Dave Brown. Having Dave on staff with MnCUN helps to build a positive relationship and another reason to turn to the CU as a reliable resource. Beyond words, a trusted navigator is needed in this complicated journey…. At no time did I feel the pressure to change." – Lynne, MY Credit Union Member Looking ahead to 2025, TruLync Medicare Advisors is preparing to meet with 13 participating credit unions for strategy sessions this month and will provide detailed reports to each credit union. Please continue to keep an out for communications coming directly from the team. They aim to continuously deliver outstanding results and maximizing savings for even more Minnesota credit union members. TruLync's mission is to empower credit union members nationwide with expert Medicare guidance through a collaborative approach. By engaging in meaningful conversations and utilizing their industry expertise, they ensure each member receives tailored solutions that genuinely serve their best interests. They are dedicated to being a dependable partner in navigating Medicare with integrity, innovation, and care. Mara Humphrey, President & CEO of MnCUN, celebrated the program's success: "We're deeply grateful for the opportunity to collaborate with credit unions across the state and look forward to many more years of serving our credit unions and providing stronger advocacy for CU members across the state." For more information or to get involved, visit the TruLync Medicare Advisors page or contact MnCUN Vice President of Business Development Kris Jacobsen. Join The Baker Group Credit Union Strategies First Quarter 2025 Webinar to learn about economic and Federal Reserve policy outlook, industry trends and regulatory hot button issues along with current investment strategy recommendations.
Topics:
When: Thursday, January 9, 2025 10:30 a.m. CT Who Should Participate: Credit Unions’ CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this webinar. There is no cost for this webinar. Presenters: Andrew Okolski, Director of Credit Union Strategies Greg Tomaszewicz, Senior Financial Strategist Chris Dahlgren, Senior Financial Strategist CPE Credits 1.5 hour of Finance CPE Credits will be earned for your participation. *Webinars must be viewed on a desktop computer to obtain CPE credits. Participation cannot be verified for those who use tablets or cell phones. MnCUN's Network Service Corporation works to develop relationships with vendors in order to help your credit union meet the financial needs of your members. By negotiating on behalf of Minnesota credit unions, the NSC is able to ensure your organization has access to a variety of products and services at an unbeatable price. Credit Unions are encouraged to visit the Solutions Directory to see a comprehensive list of service providers.
The Minnesota Credit Union Network is enrolling new participants into the Vendor Involvement Program for 2025. The Vendor Involvement Program (VIP) combines advertising, exhibit hall packages, and other benefits. Participation in the Minnesota Credit Union Network's Vendor Involvement Program showcases your company to credit unions across the state. Visit the Partner With Us page for details on benefits and to enroll. The Baker Group has provided a Third Quarter Minnesota Credit Union Trend report for Minnesota Credit Union Network Members. The report provides financial data and projections for credit unions in Minnesota. You can access it via our publications page on the Minnesota Credit Union Network portal, log in required.
As you plan next year's strategy, now is a good time to consider investing in Curql Fund II and broaden your credit union's access to extensive product and service discounts in emerging fintech technologies that can help you compete in the future marketplace.
Through an investment in Envisant, credit unions with assets above $100 million can be part of the Curql ecosystem that facilitates collaboration between fintechs and the credit union industry. It offers a seat at the table for investing credit unions with benefits that include:
Join an informative live webinar to get your questions answered! Choose one of the upcoming webinar options to discover more about the benefits of this groundbreaking investment opportunity. Dates/Times CT:
P.S. Watch "3 Questions with Envisant’s Tom Kane and Libby Calderone" about Curql Fund II. |
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