Credit Unions are Beating the Competition

 
 

Credit unions have proved to be an outstanding example of cooperatives fulfilling the needs of their members when others are pulling out of the market.

Growth and Performance:
Credit Unions vs. FDIC Insured Institutions

(Data as of June 30, 2009
*12-month growth
†Annualized year-to-date return on assets
‡ Reportable delinquency is 60 days or greater for credit unions, 90 days for FDIC-insured institutions
Source: Callahan’s Peer-to-Peer Software, FDIC Quarterly Banking Profile)

Credit unions out-paced their bank and thrift competitors in all major growth categories.  Further, they have done so while posting a stronger return on assets (this figure is post-NCUA assessment) and lower delinquency. The credit union model has also led them to operate with a tighter interest margin, resulting in better value for members with both loan and deposit rates.

Credit unions are focusing on products where their competitors are pulling back—mortgages, credit cards, small business lending, student loans—ramping up efforts to reach those in need of credit, and taking advantage of new opportunities in the market.  As a result, credit unions have been increasing their market share.  For example, credit union had a 20.9% auto lending market share in July, up from 15.8% a year ago.  Mortgage market share is up to 5.3% from 3.9% a year ago.  Further, credit unions have captured $58.1 billion in new deposits and originated $144.2 billion in new loans, both the highest on record.

Continue reading about the success of cooperatives during this recession.

 

 

 

Sept. 2, 2009


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