Since the beginning of 2022, the markets have been tumultuous as indices have dropped 20-30 percent from their all-time highs. The Federal Reserve Bank has increased interest rates twice with the expectation a few more increases are forthcoming. The Fed is increasing rates because inflation has been the highest in recent history. The cost of fuel, groceries, household goods, rent, and almost everything has increased. Wage expectations continue to increase as the U.S. has over 11 million jobs and about six million people seeking employment. Material and labor shortages exacerbate the problem of rising prices and there is no end in sight. We know our membership is going through the storm and we stand ready to help. With the challenges the U.S. has experienced the past two years and the ups and downs of the global economy, now is a great opportunity to assess your financial situation and make changes to endure the challenges ahead. We stand ready to help.
With the volatility of the market, retirement funds for many people have taken a hit. As you plan for retirement, take advantage of our financial advisory services to get a second look at where you are and where you want to go. Our program through CUSO Financial Services (CFS) is available to all members and the right way to get your finances ready for retirement. If you need help with financial management basics, please contact our Certified Financial Counselors for assistance.
Through these challenges, your credit union continues to be strong, safe, and moving forward with many great things happening for our membership. Recently, we converted our person-to-person (P2P) payment system to Zelle®. The membership asked and we responded. Zelle® is considered the premier platform for P2P and we are excited it is integrated into our internet and mobile banking platform. It is user friendly and fast. An additional challenge our members tell us is the difficulty saving the traditional 20 percent for the down payment to purchase a home. This is especially true as home prices continue to increase. To meet the needs of first-time home buyers, we developed and introduced a mortgage with a down payment as low as 1 percent. The program is designed for members with excellent credit, job history, and income but have not accumulated 20 percent for a down payment. The program has already proven successful, and we are excited to provide this member-centric program. Contact our Mortgage Loan Officers for more information.
Knowing the financial markets continually evolve, we are always looking for ways to improve our products, services, and delivery. Upcoming items include a new online account opening system that streamlines the process and allows members to open new accounts in a few minutes. Also, we will relocate our Highlands Ranch Branch at the beginning of the year and the look and feel will serve as our model branch of the future. We are also investigating partnerships with fintech (financial technology) companies to improve products and services to our membership. More to come as we progress in this journey. Some of these improvements are only possible because we converted our financial system in March 2021. There are many exciting things happening at AAFCU and I look forward to many more in the future. Finally, look for a brand and logo refresh in the near future.
While we continue to make improvements to the member experience, we know the economy ahead is difficult at best. Interest rates will continue to rise making home and auto purchases less affordable. Prices of everyday living will continue to go up. Investment markets will remain volatile. Businesses will continue to struggle to get employees, and all of us will continue to feel the effects of the pandemic. Rest assured, your credit union remains steadfast in serving you and creating the best financial circumstances for you, your family, and your business.
Thank you for your continued support and loyalty to AAFCU. We look forward to serving you and your friends. Have a great summer!
Glenn L. Strebe
President/CEO