The Current State of Credit Unions

Posted: April 11, 2012 in Banks, Credit Unions
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With all the negative press in the past few years about banks by this administration, one would wonder why Credit Unions haven’t grown more. Is it because banks do a better job of marketing, and providing a wider array of products and services? Typically the Credit Unions with asset size greater than $100 Million act more like banks. Maybe that explains their size and greater percentage’s of market share in key metrics versus their smaller Credit Union brethren.

Credit Unions have been slower to adopt Social Media Marketing like their mid to small size banks. In this fast paced world in which we find ourselves, consumers are wanting more and faster services. Most small to midsize Credit Unions and Banks are challenged to spend the money and hire the skill set to keep up. Will the pace of change accelerate or slow down? Will it be harder to keep up with the competition if you don’t adapt now?

State of the Credit Union

  • The number of Credit Unions dropped by 3.5% from 2010 to 2011.
  • From 2007-2011 Credit Unions have declined by over 1000 according to CUNA.
  • The number of Credit Unions are fairly even across all asset classes.

Number of Credit Unions by Asset Size 2011

  • Credit Unions with an asset size greater than $100 Million control 81% of all members.

Credit Union Memberships versus Asset Size 2011

  • Credit Unions with an asset size greater than $100 Million control 87% of all Assets.

Credit Unions Total Assets by Size 2011

  • Credit Unions with an asset size greater than $100 Million control 89% of all loans to members.
  • Total Loans by Credit Unions by Asset Size 2011Credit Unions with an asset size greater than $100 Million control 87% of all savings by members.Total Savings of Credit Unions by Size 2011The top four banks have asset sizes larger than all the Credit Unions combined.
  1. J.P Morgan Chase leads the way with 2.3 Trillion.
  2. Bank of America with 2.1 Trillion.
  3. Citigroup with 1.9 Trillion.
  4. Wells Fargo 1.3 Trillion. 

Rounding out the top 50 in banks is Hancock Holdings with assets of $19 Billion.

There is only 1 Credit Union with an asset size greater than Hancock Holdings. The Navy Federal Credit Union is $39.6 Billion or roughly 4% of Total Credit Union Assets.

What’s your take on the state of the Credit Unions and Banks? What will the end of 2012 look like for Credit Unions and Banks?

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