5 Strategies to Gain Traction in Today's Wonkonomy
In today’s “wonkonomy,” credit unions face mixed economic signals—from rising assets and easing loan-to-share ratios to growing fraud threats and member disengagement. This article outlines five actionable strategies to boost liquidity, diversify portfolios, leverage AI to prevent losses, harness explainer videos for marketing impact, and strengthen team engagement. With an unpredictable economy, resilience depends on preparing for multiple outcomes, not just the most likely one.
Wonky + economy = Wonkonomy
Is it the most official economic term out there? We’ll let you decide if it’s worth adding to your vocabulary, but between geopolitical unrest, lingering uncertainties, and mixed signals at both the macro and micro levels, the economy has felt anything but stable this year. Add in a few paradoxical, yet very real, industry trends, and you get a strange mixture of hopeful skepticism.
- Assets are up despite stubborn interest rates
- Loan averages are rising, and so are credit card delinquencies
- Loan-to-share ratios are easing, while return on assets holds steady
- Inflation is cooling, but prices remain sticky amid global instability
- With a power shift at the White House, ambiguity is growing around banking regulations and compliance requirements
These trends are sending mixed signals. Growth is happening, but it is uneven. Every institution is feeling the ripple effects differently, making resilience less about predicting the next move and more about preparing for several possible outcomes.
Since we may be stuck on an economic teeter-totter for a while, here are five strategic moves to ride out the turbulence of this wonkonomy and position for firmer ground ahead.
1. Keep Your Borrower's Best Interest (Rates) in Mind
The costs of vehicle and home ownership are rising, and interest rates are only part of the story. Insurance premiums, repair costs, and fuel are putting pressure on borrowers, increasing risk for lenders. Combined with the growing toll of natural disasters and the uncertain impacts of global tariffs, it is clear that managing risk requires savvy strategies that keep borrower relationships at the center.
When it comes to stimulating deposits, look no further than the members you already have. Instead of chasing new accounts, invest in the ones who already trust you. A few relationship‑deepening, deposit‑stimulating tactics include:
- Using transactional data to create targeted offers based on life stage and financial need
- Promoting unsecured personal lending and credit cards with flexible terms
- Offering rewards for checking account referrals or hitting savings milestones
- Launching limited‑time, high‑yield savings accounts for loyal members
Whether you are boosting liquidity or building loyalty, these strategies deepen trust and help members weather the same headwinds you are navigating.
2. Get Charged for Growth with Non-Traditional Lending
With a stronger emphasis on fair lending, lenders worry that fairness comes at the cost of profitability. As originations and refinances remain stuck in neutral, it is time to look outward to prioritize overall portfolio health.
Loan participation and purchase programs offer a smart path to diversification, delivering strong net‑yield returns backed by sound underwriting. Whole and participation loan programs can grow liquidity sustainably, providing default coverage for low‑risk, high‑reward opportunities.
One area to watch is non‑traditional auto lending, especially EVs. With 4.8 million EVs on the road and adoption accelerating, lenders who embrace alternative lending models now can secure early traction in this expanding market.
3. Engage AI in the Battle Against Losses
Fraud of every kind is skyrocketing, and it does not have a single, straightforward source. ATM jackpotting, a resurgence of Treasury check fraud, and complex phishing attacks are slow‑drip threats that erode the bottom line. Add in the rising cost of natural disasters (and the resulting spike in bond rates), and it is a critical moment to review liability coverage and operational risk.
There is another source of portfolio strain: one in seven drivers are uninsured, putting auto portfolios at increasing risk from uncovered collateral.
While more stringent underwriting and lending guidelines can help, engaging AI as a loss‑prevention tool provides a multi‑layered approach. From real‑time fraud detection to digitally verified insurance on auto loans, AI can flag anomalies before funds leave the building and give lenders greater confidence that collateral is covered.
It is not quite a silver bullet, but it is close. Fight losses with AI today to be the institution that thrives tomorrow.
4. Level Up Your Explainer Video Game
How, where, when, and why to promote products and services is shifting fast. Amid all this change, one thing is clear: video is no longer optional.
Ten years ago, 75% of businesses saw video as essential. Today, it is 95%.
At the top of the list are explainer videos. Nearly three‑quarters of video marketers use short, educational videos to cut through the noise and connect with audiences through bite‑sized, meaningful messages.
The good news is that credit unions no longer have to start from scratch. CUSOs and fintech partners are lowering the barrier to entry with tools that make video marketing scalable. Credit unions that engage in the evolution of explainer video production and strategy will stand out.
5. Nourish Team Engagement
Jobs made strong gains in Q1 2025, but that does not mean people are staying. The unemployment rate does not reflect the deeper issue: high levels of disengagement and costly turnover. Just like borrowers shop for the best interest rate, employees are shopping for the best culture.
In today’s job landscape, people are not leaving jobs, they are leaving managers. And in an environment where talent is your competitive edge, leadership matters more than ever.
Leaders who invest in team coaching see stronger retention, better performance, and more engaged teams. It is not about keeping employees happy, it is about creating a culture that attracts and retains people who believe in the work you are doing.
When Will the Economy Not Be Wonky?
We do not know how long we will be stuck in a wonkonomy, but uncertainty is not a reason to stand still. Now is the time to lean into sound strategies that drive liquidity, protect portfolios, and future‑proof your institution.
From enhancing revenue and expanding lending to managing risk, improving market share, and engaging employees, Allied Solutions is ready to help you grow, protect, and evolve your business, no matter how wonky the economy gets.
Ready to move your business forward in today’s economy? Let’s get in touch.