Credit Union Disaster Recovery Plans

Written by Curt Long, Research Assistant

Each month NAFCU’s research staff publishes our Economic & CU Issues Monitor, which features analysis of macroeconomic and financial trends, as well as member survey data covering critical credit union topics.  This month’s report focused on disaster recovery plans.  Some of the key findings include:

• Most respondents (95.7 percent) test their business continuity plans annually, while the remaining credit unions (4.3 percent) test twice per year. Among those responding to the survey, nearly one-third (32.1 percent) have used their plans.
• Roughly one-third (35.3 percent) of respondents indicated that their credit unions intend to use mobile branching in the event of a disaster. Almost half of the respondents (49.1 percent) have arranged to share resources with other credit unions.
• More than 70 percent have a plan to restock ATMs with cash during a disaster. Furthermore, 14.6 percent of respondents plan to waive ATM fees for non-members.
• The economic recovery is in its third year, but growth will remain sluggish, slipping from its 2010 level of 2.8 percent to 1.6 percent. Among the 14 million currently unemployed workers, 44.6 percent have been out of work for six months or more. A much larger economic expansion is needed to reduce unemployment to a more normal level.

For a copy of the full report, click here (member login required).  To participate in the monthly survey, please e-mail the research staff at research@nafcu.org.

Comments

[Jane]

I personally know at least 10 people who have been out of work for far more than 6 months and that's a pretty strong indicator that they won't be returning to work any time soon, or at all. Sadly, when considering the final statement "A much larger economic expansion is needed to reduce unemployment to a more normal level." we could be looking at the new normal. This could be what we now define as normal unemployment rates. In that case, we also have to define new survival tactics with products and services to support and grow out of the new normal.

[Ron Daly]

Gald to see the high percentage of credit unions that test their DR plan at least once a year. Disasters come in all shapes and sizes so it's important to know the drill. In 2011 we've had CU clients impacted by snow, fire, hurricanes, floods and even the "occupy wall street" movement.

Communication before, during and after a disaster is a key part of the DR Plan. I wonder how often CUs do their call tree test?