MON AM News: Banks, credit unions optimistic about 2025 growth despite cybersecurity worries; DOA projects Wisconsin population to be flat through ‘30, drop each of next two decades

January 6, 2025

— Banks and credit unions across the country are more optimistic about growth in 2025 despite growing concerns about fraud and cybersecurity, according to surveys from Milwaukee-based accounting firm Wipfli.

The company recently released survey results for the U.S. banking and credit union industries, exploring top challenges for financial institutions as well as expectations for the year ahead.

Anna Kooi, Wipfli’s financial services practice leader, says the results “underscore an industry at a critical juncture” as opportunities presented by AI and other technology are paired with worries about talent shortages and online threats.

“Financial institutions that stay focused on strategic goals and leverage data-driven insights are best positioned to lead the way,” she said in a statement.

The banking survey, which tapped 345 top-level executives, found 97% of respondents expect growth in the next 12 months, including 58% that expect asset growth of 5% or more. Report authors note that’s a “significant boost” from last year, when 36% expected to grow 5% or more.

Similarly, the credit union survey — which had 106 executive respondents — found 96% expect to grow in the coming year, and 52% expect 5% growth or more. That’s up from 31% expecting 5% growth or more last year.

But while expectations for future growth have strengthened from the last survey, worries about cybersecurity and fraud have also risen.

Among banking executives, 61% said fraud is on the rise at their business, an increase of 36% from last year. Forty-five percent reported more cyberattacks, and 79% reported unauthorized access to their networks and data.

For credit unions, the picture is much the same. Forty-nine percent of respondents are seeing more fraud, compared to 35% last year, while 36% reported an increase in cyberattacks. And 76% found unauthorized access to their data and networks.

As a result, financial institutions in both camps are putting more money into cybersecurity measures.

Among bank executives, 60% boosted investment in this technology, compared to 51% last year. Such investments were more common among smaller banks, with 67% compared to 54% for bigger banks. Meanwhile, 57% of credit unions invested more into cybersecurity over the past year, compared to 40% last year.

Top cybersecurity measures being implemented include more online safeguards, cyber risk assessments, penetration testing, bringing in outside cybersecurity expertise, fraud education for customers and more.

See the release and survey results for banks and credit unions.

— Wisconsin’s population is expected to be largely flat through 2030 before declining slightly in each of the following two decades as the state’s birth rate has fallen, the latest report from DOA shows.

That projection for the statewide population, though, masks the major decreases expected in some parts of Wisconsin.

The state is projected to have a population of 5,890,915 in 2030, compared to the 5,893,718 residents that lived in Wisconsin in 2020. The Department of Administration then projects the population to drop 1% by 2040 and another 2% by 2050.

Crawford and Richland counties in southwestern Wisconsin, though, are projected to see their populations drop 8% and 9%, respectively, by 2030 compared to 2020. The state’s latest numbers project both will see double-digit decreases in each of the following two decades.

Meanwhile, Vilas County in northern Wisconsin is projected to see a 7% decline in its population by 2030 before seeing drops of 13% and 16% in the ensuing two decades.

Part of that is related to age. In 2020, 29% of Vilas County’s residents were 65 or older, tied for sixth highest in the state. By 2050, that’s projected to be 45%, tops among Wisconsin’s 72 counties.

The coming population changes have a host of implications for Wisconsin in the coming years, from demands for services for the elderly to fewer people in the workforce.

Dale Knapp, the director of Research and Analytics for the Wisconsin Counties Association, noted his organization released a report more than a year ago that had projected 130,000 fewer Wisconsinites between ages 25 and 64 by 2030. The new state DOA report now projects Wisconsin to have 200,000 fewer residents in that age group.

Knapp was part of a group of data scientists asked to review the projections and provide feedback.

“We’re going to have this continued workforce challenge,” Knapp said. “We’ve been throwing out some dire numbers. This says there’s a good chance it’s going to be a lot worse than we thought.”

See the full story at WisPolitics.

— Federal officials have rolled out nearly $5.5 million in new funding for Wisconsin organizations to address “home health hazards” such as lead.

The U.S. Department of Housing and Urban Development on Friday announced more than $226 million in total funding across the country, including three grants in the state. Green Bay-based nonprofit Newcap, Inc. is getting nearly $1.48 million, while the cities of Milwaukee and Selma are getting $2 million each.

Funding is to be used to boost local capacity for lead abatement and other interventions to improve home safety, support local workforce development focused on housing renovation and hazard assessment and more.

See a state-level funding breakdown here.

— WEDC is now accepting applications for the next round of Entrepreneurship Partner Grants, which aims to help organizations supporting underrepresented business leaders.

This grant round, which began taking applications today, will include awards up to $200,000. Awardees will be selected based on the number of entrepreneurs they serve, cost effectiveness and impact, according to the agency’s release.

The Wisconsin Economic Development Corp. is encouraging programs focused on people of color, women, members of the LGBTQ+ community, veterans and rural areas to apply. The release says groups that haven’t gotten funding from this program since fiscal year 2022 or those that “bring new, innovative program models” should apply for funding.

Grant recipients will be announced in May.

See the release.

— Daniel Rottier, president of Milwaukee-based law firm Habush Habush & Rottier, passed away Friday.

The firm’s former president, Robert Habush, in a statement called Rottier an “incredibly tenacious, industry-changing” trial lawyer.

“Dan dedicated his life to trial law and to fighting for his clients,” he said. “The entire legal community has suffered a great loss with his passing.”

Rottier managed the firm and handled complex medical malpractice and product liability cases, according to the firm’s announcement. Over the course of his career, he resolved more than 90 cases for over $1 million, and previously served as president of the Wisconsin Association for Justice and chairman of the litigation section for the State Bar of Wisconsin, the release shows.

See more in Top Stories below.

— Marshfield Clinic Health System and South Dakota-based Sanford Health have officially completed their merger and now operate under the Sanford Health name.

The unified health system recently announced the completion of the merger that was announced in July, forming an organization with about 56,000 employees, 56 hospitals and 4,500 providers. Its patients are located across the upper Midwest region, including Wisconsin.

Dr. Brian Hoerneman, the previous interim CEO of MCHS, is now president and CEO of the Marshfield Clinic region of Sanford Health, the release shows.

“I am excited about the opportunities ahead as our teams learn from each other and combine our complementary strengths, cultures and missions,” he said in a statement.

See the release.

Top headlines from the Health Care Report…

— The state Medicaid fund is running about even with projections for how much it will spend in the 2023-25 biennium, according to the latest update from the Department of Health Services.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

Sign up here.

— WisPolitics and WisBusiness.com are hosting a virtual luncheon Jan. 15 at noon to explore how policymakers and the health care community can improve youth mental health.

The one-hour event will feature four panelists:

Maureen Busalacchi, director of the Division of Alcohol Policy Prevention and Research at the Medical College of Wisconsin and current president of the Wisconsin Public Health Association Inc.
Dr. Mary Pfeifer, retired (2024) Neenah Joint School District superintendent;
Debbie Patz, vice president of Bellin Psychiatric Center, Emplify Health;
And Erich Pfeifer, president and CEO of Marine Travelift.

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