The credit union industry is constantly transforming and growing. These 10 recent statistics will change the way you look at this dynamic industry.
In March 2009, there were 7,909 credit unions in the US. Four years later, there were 6,895. Many credit unions are consolidating or offering a wider range of services to more customers.
Credit union membership grew by 3.5% during the year 2015 alone. This is the highest rate of growth posted since 1994. More people around the country are choosing credit unions for their financial needs.
The efficiency ratio shows how much it costs the average credit union to produce one dollar of revenue. After a period where this ratio stood at or above 100%, costing credit unions at least a dollar for each dollar generated, it has now dropped to around a steady 77%.
Over the past decade, the breakdown of total income generated by credit unions has changed considerably. Fees and similar sources of operating income continue to grow in importance, with a current all-time high of 28.8%.
Credit union loans increased by more than 10% from September 2014 through September 2015, making this one of the fastest-growing periods for loans in credit union history.
The strongest gain for credit union loans in 2015 was in the area of new auto lending, with a 4.1% increase in balances. Used auto lending was nearly as popular, with an increase of 4%.
The current net long-term asset ratio of credit unions is 32.5%, a considerable drop from the high point of 36.0% seen several years ago. This ratio shows credit unions to be in a good position to handle Federal Reserve rate increases in the future.
The aggregate capital ratio of credit unions is up to a healthy 11.0%, making them “well capitalized” by the standards of regulators.
Savings growth is also up, with a long-term rising trend toward the September 2015 level of 10.7%.
Borrower bankruptcies have stabilized at a low level of 1.6 per 1000 members during the third quarter of 2015, after a high in 2010 of 3.7 per 1000 members. Credit union borrowers are more financially stable than ever before.
How will you respond to these statistics in your own workplace? Knowing about the latest trends in the industry can help you do business in an intelligent way.
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