HOLLYWOOD, Fla. -- Credit unions and CUNA Mutual have a highly symbiotic relationship CUNA Mutual CEO Jeff Post told Credit Union Times in an interview live from the Discovery Conference today.
The economy is going to get worse before it gets better. CUNA Mutual is well-equipped to handle the storm with its 25% capital but the company is expecting decreased earnings. "It probably will be fairly substantial. As we go into a recession, as credit unions suffer, we suffer," Post said. He said CUNA Mutual has taken some hits on private mortgage insurance and, in much smaller doses, auto related insurance.
However, CUNA Mutual is well positioned with its geographic and product diversification.
One way CUNA Mutual is working to buoy credit unions is helping them garner new, younger members. One pilot in particular Post sees having strong potential is a student loan program. CUNA Mutual will do all the work for the credit union. When an Internet application for a student loan is filed online through its student lending partner, which is how nearly all are done, CUNA Mutual takes the information and recommends credit unions in the area of where the applicant lives and where they are going to school and offers a 50 basis point reduction if they join on of those credit unions. The credit unions can also take the information and cross sell its products.
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