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Credit Unions Reach 100 Million Members Nationwide

Tuesday, August 05, 2014   (0 Comments)
Posted by: Susan Dyer
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Credit unions have reached and surpassed 100 million memberships nationwide – equating to one in every three Americans.

The 100 million memberships count is based on data collected from credit unions and compiled by CUNA in its June 2014 “Monthly Credit Union Estimates.” CUNA estimates that credit union memberships expanded by 2.9% in the past 12 months (June 2013 to June 2014), and the 100 million mark was eclipsed in June. This represents a continuation (and acceleration) of trends previously reported: In 2013 memberships expanded by 2.5% and in 2012 memberships grew 2.1%. CUNA expects the membership growth to continue in the second half of 2014 and exceed the full-year growth of the previous year.

Credit unions added a total of 2.85 million additional memberships over the past year - the largest reported increase in more than a quarter century. And, in percentage terms, the 2.5% increase was the fastest since 2000, according to the CUNA analysis.

Credit union memberships in Kansas seems to be following the same nationwide trend. From March 2013-March 2014, Kansas credit unions increased membership by 2.5%. (State numbers are not yet available for year ending June 2014).

“Consumers are finding out that credit unions are a smarter choice,” said Haley DaVee, Vice President of Governmental Affairs and Association Services. “Consumers are in need of a financial institution they can trust, one that can help them make smart money choices and provide great financial benefits. Last year our state’s credit unions saved Kansans a total of $53 million.”

“Clearly, there is growing recognition for credit unions among consumers,” said CUNA President and CEO Bill Hampel. “They increasingly understand that a credit union places their interests above all else, particularly in returning financial benefits to consumer members in the forms of lower rates on loans, higher returns on savings, and lower and fewer fees.” He added that, in 2013, those financial benefits totaled more than $6 billion.

Hampel pointed out that, as cooperatives, credit unions are owned by their members and exist to provide financial services to those members.

“It’s the structure of credit unions – as not-for-profit, democratically led and cooperatively owned financial institutions– that allows credit unions to maintain this focus on returning financial benefits to members,” CUNA leader Hampel said. “In fact, by doing so, credit unions have earned the satisfaction and trust of their existing members – and are attracting even more.”

At least two, key measurements of consumer attitudes have recently underscored the reputation that credit unions have built among their members. At year-end 2013, the American Customer Satisfaction Index (ACSI) found, for the fifth straight year (which is every year that credit unions have appeared on the index), that credit unions lead banks in customer satisfaction (scoring 85 out of 100, compared to 78 for all banks).

In 2013, the Chicago Booth Kellogg School Financial Trust Index showed that consumers trust credit unions more than banks. The index (which is sponsored jointly by the Kellogg School of Management at Northwestern University and the University of Chicago Booth School of Business) showed trust in credit unions is 62% while trust in big banks is 28%.

CUNA Chief Economist Mike Schenk said other factors within the financial services marketplace have played key roles in the credit union growth, including dissatisfaction with big Wall Street banks and consumer movements such as Bank Transfer Day in 2011.

“In 2010, credit union membership barely grew, expanding by just about 0.65%, or about 600,000 memberships,” Schenk said. “But, with the spotlight turned in 2011 to the increasing fees banks were charging – particularly for debit cards and other products – and the additional publicity for the lower and fewer fees at credit unions by contrast, membership growth that year more than doubled over the previous year, by 1.4 million – and the rate of growth has increased in each subsequent year."

Schenk noted that not everyone can join the same credit union, but there is a credit union for everyone. Consumers wishing to find a credit union they are eligible to join should visit aSmarterChoice.org, a website that includes a comprehensive credit union finder (including every credit union in the country), and helps consumers learn more about credit unions.