Wipfli LLP Unveils Industry Surveys for Banking and Credit Unions: A Deep Dive into Challenges and Growth Strategies

The esteemed advisory and accounting firm, Wipfli LLP, recently unveiled the findings from two profound industry surveys, one for banking and one for credit unions. The results offer groundbreaking insights into the key challenges these sectors are grappling with and the strategies they're employing to spur their growth.

Banking: A Shift in M&A Activity and Growth Plans

The banking industry has witnessed a notable downturn in mergers and acquisitions (M&A) activity in 2023. The survey reveals that the percentage of banks interested in buying has dipped from 91% in the previous year to just 78% currently. Intriguingly, banks possessing around $1 billion in assets are those most likely to court growth through acquisitions.

Credit Unions: A Drive for Technological Edge

Meanwhile, credit unions are harnessing the power of technology to retain their competitive edge. With the omnipresent threat of inflation and rate hikes leading to depleted consumer deposits and savings, both industries are harbouring less buoyant forecasts for 2024.

Cybersecurity: A Shared Priority

Amid these economic challenges, cybersecurity has emerged as a pivotal concern for both sectors. The banking industry reported a surge in incidents of unauthorized access, and despite traditionally enjoying less rigorous regulations, credit unions share similar cybersecurity apprehensions.

Talent Management: A Common Challenge

Talent management presents another shared hurdle, with both banking and credit unions contemplating cultural shifts to address the issue. Strategies under consideration include leadership training and the implementation of diversity, equity, and inclusion (DEI) initiatives. Credit unions, in particular, are also grappling with liquidity issues and are keen to tap into opportunities with underbanked or unbanked households and explore the potential of open banking to expand their market presence.

Embracing Advanced Technology

Both surveys underscore the significance of advanced technology for credit unions seeking to distinguish themselves. Tools such as instant payments, artificial intelligence (AI), and enhanced digital engagement are viewed as game-changers. The surveys incorporated responses from 390 financial institutions and 83 credit unions across various states, thus providing a comprehensive overview of the current financial landscape.