Third Quarter Credit Union Numbers Show Strengthening Member Relationships

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While credit unions continue to add members, they are also building deeper relationships with these members as seen by growing penetration rates according to the third quarter data from Callahan & Associates

Jay Johnson, Executive Vice President at Callahan & Associates

As you look at measures of relationship strength, they show that members continue to turn to credit unions for advantages not offered by other financial institutions.

Credit unions are building stronger relationships with their members according to Callahan & Associates’ 3Q14 Trendwatch.

After topping the 100 million member mark earlier in the year, credit unions continue expanding not only member enrollments, but also relationships, with impressive growth across both deposit and loan accounts. Credit union member growth continues rising, with 3.1 percent 12-month growth during the third quarter. Simultaneously, share draft penetration rates increased by 1.6 percent to an all-time high of 53.9 percent. The numbers show that credit unions are continuing to focus on member relationships while at the same time showcasing the cooperative advantage to attract new members.

“Beyond that 100 million membership number that’s attracted a lot of attention, I think the bigger story for the industry is the membership focus,” said Jay Johnson, Executive Vice President of Callahan & Associates. “As you look at measures of relationship strength, they show that members continue to turn to credit unions for advantages not offered by other financial institutions.”

The numbers on the lending side further indicate that credit unions are growing member relationships. The percentage of members holding a credit card from their credit union is at 16.5 percent while the percentage of members holding an auto loan is now at 17.4 percent. Both figures are new industry highs.

Callahan’s Trendwatch also revealed that new auto loan balances are up nearly 20 percent year-over-year while used auto lending is up 12.5 percent. This has helped credit unions capture their highest share of the auto finance market since 2009 at 15.7 percent.

For information on acquiring a recording of Trendwatch, please call Callahan & Associates at 1-800-446-7453 to speak with an account manager.

About Callahan & Associates
Callahan & Associates is dedicated to helping the credit union industry thrive. Our team of experts provides leading research, analytics, networking, and consulting solutions. More than 4,000 credit unions and industry suppliers rely on us for the latest data, actionable insights, and benchmarking tools to develop their unique competitive advantages and achieve their strategic goals. Our 30-year history has enabled us to build an unparalleled knowledge transfer consortium that connects the industry’s best minds. To learn how you can join Callahan’s network, please visit http://www.callahan.com.

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Salvador Lopez
Callahan & Associates
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