LEVERAGE Monthly Newsletter

As of today, the League of Southeastern Credit Unions & Affiliates and the Virginia Credit Union League have officially consolidated into one unified organization: The League of Credit Unions & Affiliates. Serving credit unions across Alabama, Florida, Georgia, and Virginia, The League is positioned for even greater impact, offering expanded opportunities for collaboration and innovation.

The Story Behind Our New Logo

Our new logo, featuring a shield, symbolizes the strength, advocacy, and collaboration at the heart of our mission. The four marks of the shield represent our four states—Alabama, Florida, Georgia, and Virginia—and our top priorities as your trade association: advocacy, credit union engagement, community impact through the Foundation, and innovative LEVERAGE solutions. It’s more than just a logo—it is a symbol of our commitment to protecting and advancing credit unions and the communities they serve.

The Advantages of Being Part of The League

With the consolidation of our organizations, we have created a stronger, more dynamic League that will provide credit unions with:

• • Increased Market Reach: By joining The League of Credit Unions & Affiliates, our expanded membership base strengthens our collective influence, ensuring both credit unions and partners benefit from greater market opportunities.
• • Advocacy Impact: The combined network of state and federal lawmakers, along with regulatory experts, empowers The League to drive positive change for credit unions and their partners, ensuring continued growth and success in the industry.
• • Member Resources: Credit unions will benefit from an expanded range of resources, professional development, and educational offerings.

Engage with The League

Be sure to explore our 2025 events calendar, packed with exciting opportunities for engagement and collaboration with credit unions from every corner of our newly expanded region.

We encourage you to sign up for future communications to stay informed and engaged as we navigate this exciting next chapter.

Together with The League, LEVERAGE is proud to be the trusted partner for credit unions in Alabama, Florida, Georgia, and Virginia.

Credit Union Audit and Compliance Group (CUACG) is the nation’s 6th largest auditing firm dedicated exclusively to serving credit unions. They are the largest auditing firm serving credit unions between $40 to $100 million in assets. CUACG has over 220 credit union clients spread throughout the United States. Their comprehensive suite of offerings is designed to help credit unions navigate the complexities of regulatory requirements while improving operational efficiency and mitigating risks. From annual Supervisory Committee audits, Compliance audits, to Quarterly Interim Audits, CUACG provides tailored solutions that address the unique needs of each credit union.

What sets CUACG apart is their deep industry expertise and unwavering commitment to client success. CUACG is a part of The League, which gives them unmatched access to everything that is happening in the credit union universe. They understand that no two credit unions are the same and work closely with each client to deliver personalized strategies that align with their operational goals. CUACG’s experienced team takes the time to identify potential risks, uncover opportunities for process improvement, and ensure regulatory compliance at every level.

CUACG’s proactive approach to staying ahead of regulatory changes ensures that credit unions can remain focused on serving their members. Their scalable services are designed to meet the needs of credit unions of all sizes, from one person credit unions to multi-billion-dollar credit unions.

CUACG can complete any audit remotely through our secure uploading platform of Microsoft OneDrive. CUACG completed over 60% of their audits remotely in 2024 which saves credit unions money by not having to pay for travel expenses and allows credit union staff to focus on what they need to get completed without having an auditor standing over your shoulder.

More than just a service provider, CUACG is a trusted partner for credit unions seeking long-term success. Their client-centered approach fosters strong relationships, built on trust, transparency, and a shared dedication to the credit union mission. With CUACG’s expert guidance, credit unions can confidently safeguard their operations, exceed regulatory expectations, and create a solid foundation for future growth.

By choosing CUACG, credit unions gain a reliable ally who understands their unique challenges and is dedicated to their success. With CUACG’s support, credit unions can focus on what they do best — serving their members and building stronger communities. Contact Marcus King at marcus.king@cuacg for a FREE QUOTE TODAY.

Home Improvement Loans
LendKey's Home Improvement Loans program offers lenders a unique opportunity to deploy capital and generate strong returns through a nationwide network of vetted contractors. Lenders can either participate or originate, providing flexibility depending on desired risk and appetite. By matching creditworthy borrowers with participating lenders at the point of sale, LendKey's innovative platform creates a transparent, efficient, and low-cost borrowing option while enabling lenders to diversify their portfolios and optimize capital deployment.

Student Loan Refinancing
LendKey's Student Loan Refinance program empowers lenders to provide relief to borrowers burdened by high student loan payments, tapping into the $1.7 trillion student debt market. By offering refinancing solutions, lenders can attract younger members and foster long-term relationships, with 63% of borrowers adding products to the financial institution holding the loan. Lenders enjoy flexible options, risk mitigation, compliance support, and enhanced lending capabilities, enabling them to boost returns while addressing the student debt crisis across multiple generations.

Private Student Loans
LendKey's private student loan program empowers credit unions to attract and retain younger members by offering a crucial financial product in a rapidly growing $130 billion market. Private student loans provide credit unions with a unique opportunity to establish long-term relationships with borrowers, as 66% of these customers add more products and 40% eventually take out mortgages or home equity loans. With private student loans, credit unions can diversify their asset base, appeal to a younger demographic, and potentially generate significant additional revenue, with a 100-borrower pool adding an estimated $650,000 to the bottom line.

Partner with LEVERAGE and LendKey to unlock new lending opportunities, participate in long-term products with solid returns and build stickier relationships with your members. Visit https://myleverage.com/solutions/lendkey.php or contact a LEVERAGE Business Development Consultant at consult@myleverage.com.

In the face of the escalating threat posed by fraud in Community Financial Institutions (CFIs), having a well-defined fraud combat plan is no longer an option—it’s a necessity. As the financial landscape evolves, so do the tactics fraudsters employ. To avoid these threats, CFIs need a proactive and multi-faceted approach to fighting fraud. This is where Eltropy, a recognized thought leader in the field, comes into play, offering innovative solutions that leverage the power of video banking, Multi-Factor Authentication (MFA) via text or chat, and secure document collection.

Why is a Fraud Combat Plan Crucial?

• • Mitigating Financial Loss: Fraud can have devastating financial implications. CFIs need to protect their assets and members’ funds. A robust fraud combat plan helps identify and neutralize threats before they result in significant financial losses.
• • Preserving Reputation and Trust: Fraud incidents can erode members' trust in CFIs. A well-executed fraud combat plan demonstrates a commitment to security and safeguards the institution’s reputation.
• • Compliance and Regulatory Requirements: Many regulatory bodies mandate that financial institutions have effective fraud prevention measures in place. A solid fraud combat plan ensures compliance with these requirements.
• • Member Confidence: Members expect their financial institution to provide a safe and secure environment for their financial transactions. A proactive fraud combat plan reinforces this confidence.

Eltropy: Pioneering Multi-Channel Fraud Prevention
Eltropy stands out as a leader in the realm of fighting fraud through a multi-channel approach. Their innovative solutions combine cutting-edge technology with industry expertise to provide CFIs with the tools needed to combat fraud effectively.

• • Video Banking: Eltropy’s video banking solutions enable CFIs to engage with their members in a secure, face-to-face digital environment. This not only enhances the member experience but also adds an additional layer of security, allowing for visual verification and identity confirmation.
• • MFA via Text or Chat: MFA is a powerful tool in fraud prevention. Eltropy’s MFA solutions via text or chat provide an extra level of security by ensuring that members are who they claim to be before granting access to sensitive information or transactions.
• • Secure Document Collection: Eltropy’s secure document collection capabilities streamline the process of gathering essential documents and information while maintaining the highest security standards. This feature ensures that member data remains confidential and protected.

In the rapidly evolving landscape of financial fraud, CFIs need partners like Eltropy, who are at the forefront of innovation, continually adapting to the latest threats and challenges. With Eltropy’s expertise and solutions, CFIs can not only combat fraud effectively but also enhance their member services in a secure and seamless manner.

For more information about Eltropy and LEVERAGE, visit https://myleverage.com/solutions/eltropy.php or contact a LEVERAGE Business Development Consultant at consult@myleverage.com.

By: Steve Rick, Chief Economist for TruStage™

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.