Posts Tagged ‘CUNA’

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?

It started as a Facebook event page on Tuesday, and now it’s grown into a national movement. Saturday (Nov. 5) was Bank Transfer Day (BTD), a deadline activists set for transferring funds from for-profit banking institutions into not-for-profit credit unions closer to home.

Bank Transfer Day

Bank Transfer Day

Organized by Kristin Christian, her Bank Transfer Day Facebook page has attracted more than 81,900 RSVPs for the event since Tuesday (Nov. 1). Why? Kristen Christian wrote on the Bank Transfer Day Facebook page’s FAQ:

Facebook Page for Bank Transfer Day

“I started this because I felt like many of you do. I was tired — tired of the fee increases, tired of not being able to access my money when I need to, tired of them using what little money I have to oppress my brothers & sisters. So I stood up. I’ve been shocked at how many people have stood up alongside me. With each person who RSVPs to this event, my heart swells. Me closing my account all on my lonesome wouldn’t have made a difference to these fat cats. But each of YOU standing up with me… they can’t drown out the noise we’ll make.”

What’s the result of these social media-fueled protests? According to the Credit Union National Association, “at least 650,000 consumers across the nation have joined credit unions in the past four weeks.” That mass influx of credit union customers was further ignited on Sept. 29, when Bank of America announced it would begin charging consumers a $5-per-month fee for debit cards. Bank of America has since retracted that rate hike because of the public outcry. November 5th has come and gone. What’s your assessment?

  • Two years ago it took 15 banks to control 50% of the asset’s in this country. Today…5 banks control 50% of the assets, while the remaining 7500 banks and 7400 credit unions control the remaining 50%.
  • The number of Credit Unions across this country continue in decline. Once peaked at 23,866 in 1969. Over the past 5 years we’ve lost over 1,000 Credit Unions. Credit Unions like banks, the big just keep getting bigger.
  • Membership among Credit Unions with less than $100 million in assets has declined according to the recent CUNA Profile. So, it will be interesting to see what asset class of Credit Union benefited from this movement.
  • In researching this issue with CUNA, here is their statement.  The growth is particularly noticeable at larger credit unions–those with $100 million or more in assets, CUNA President/CEO Bill Cheney said.  They account for about 20% of all credit unions, but serve about 80% of credit union members.

Banks hold $12,284,305 in assets according to the Federal Reserve Bank while Credit Unions hold $954,757 according to CUNA.

Total Bank & Credit Union Assets 2011

Total Bank & Credit Union Assets 2011

The beneficiary of this movement seems to be the big Credit Unions. Hopefully the small banks, and small credit unions can step up their Social Media Marketing to take advantage of this opportunity.

What do you think will happen as a result of this movement?

The battle lines are being drawn over commercial lending, as cries of mission creep alleged.

Commercial lending has been one of the key drivers of bank profits. Now credit unions are lobbying for higher limits. The 1998 federal law limited the amount of business loans that credit unions could make. The figure was set at 12.25% of assets, and now CUNA (Credit Union National Association) , an advocate of credit unions estimates that if this was lifted, it would generate $10 billion nationally in new credit union business. Credit Unions are seeking to double the % to 25% of assets.

Business lending dropped 18% nationally in 2009, while credit unions has risen 10% filling in the gap being left by banks. Rarely do bankers and credit unions see eye-to-eye. Credit Unions are cooperatives , not-for-profit institutions owned by its members, while banks are profit driven institutions owned by stockholders.

The message from credit unions to banks…if you are not going to lend to businesses in this economy, get out-of-the-way and let us fill the gap.