Survey Says — Your Members are a Mess?
Perception is reality. Although I think that the US is in the best economic shape of any major country in the world right now, many of your members would say I’m nuts.
Something strange is going on here. Economic growth isn’t being translated into economic security. The latest example of this schizophrenia comes from a survey released earlier this week by The MarketPlace radio show.
The unemployment rate is down to five percent, GDP is growing, albeit sluggishly, and there are indications that workers on the lower end of the economic ladder are finally seeing economic growth translated into bigger paychecks.
Meanwhile, the show’s Economic Anxiety Index has risen 20%; 30% of Americans are very fearful that they will lose their job in the next six months, up from 10 percent a year ago, and more than 39% say their personal financial situation causes them to lose sleep.
This dour mood explains our politics better than anything else I have seen. One thing that almost two thirds of Americans agree on is that the economy is rigged in favor of the other guy. However, 66% of Trump supporters say the economy is rigged for people who receive government assistance, compared to only 32% of Clinton supporters who believe the same thing. Conversely, 62% of Clinton supporters believe the economy is rigged for whites while only twenty one percent of Trump supporters believe this is the case.
I hope I am wrong, but I don’t see things getting much better any time soon. Statistically speaking we are at the back end of a typical an economic expansion and, more importantly, it will be more, not less, divided on November 9th whomever wins the election.
I am no marketing guru, but it seems to me that those financial institutions that are able to speak most directly to the economic anxiety of consumers are going to be the ones best positioning themselves to increase their membership.
Bank Regulators Propose Cyber Security Regulations
New York is no longer alone among government agencies in proposing enhanced cybersecurity regulations.
Yesterday, the OCC, Federal Reserve, and FDIC issued an Advanced Notice of Proposed Rulemaking discussing a potential framework for enhanced cybersecurity. Even though the regulation doesn’t impact credit unions, it intrigues me for two reasons.
First, these federal banking regulators are looking to limit its application to entities with $50 billion or more in assets. In contrast, New York State’s proposal would apply to almost every state chartered credit union.
Secondly, it may increase the pressure on NCUA to unveil a similar mandate. It’s what all the cool kids are doing. Will NCUA follow suit or will it correctly conclude that credit unions are already subject to enough cybersecurity requirements? Time will tell.
Entry filed under: General.