Insights from Catalyst

Today’s financial services market is more competitive than ever. For nine years, I have worked as an Asset & Liability Management (ALM) Consultant at Catalyst. To ensure our services continue to surpass those delivered by our competition, Catalyst encourages ongoing education. As such, I decided to extend my credit union education starting this July in Fort Worth, Texas.

Human exploitation, lost/stolen credentials or scams that compel consumers to divulge or expose personal information keep payments fraud on the rise. Fraud via lost and/or stolen credentials alone increased nearly 80% over 2020, according to a 2022 Identity Fraud Study from Javelin Strategy & Research. With the addition of scam-related fraud, losses totaled $52 billion and affected 42 million U.S. adults.

The Federal Open Market Committee (FOMC) raised the Fed Funds rate by 75 basis points on June 15 in an aggressive move to tamp down inflation that has weaved its way into the economy. The FOMC also signaled they may increase the overnight target rate to a range of 3.00-3.50% by the end of the year.

Whether it’s at the gas pump or in the supermarket, consumers are already feeling pressed by higher prices on daily necessities. What will this mean for your deposit offering rates over the same period? Given the upcoming credit and interest rate challenges, selective credit lending and a well-balanced investment ladder could help stabilize the anticipated uncertainty.

Jeff Hamilton, Catalyst Corporate Vice President of Member Credit, spoke at the recent CUNA Finance Council Conference at Caesars Palace in Las Vegas, Nevada. His session, on Monday, May 23, focused on loan participations as a winning strategy for credit unions.