Liz Furman, Author at CreditUnions.com https://creditunions.com/author/lizfurman/ Data & Insights For Credit Unions Mon, 13 Jan 2025 18:37:08 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://creditunions.com/wp-content/uploads/2022/02/cropped-CreditUnions_favicon-32x32.png Liz Furman, Author at CreditUnions.com https://creditunions.com/author/lizfurman/ 32 32 Trends In Automated Decisioning For Consumer Lending https://creditunions.com/features/trends-in-automated-decisioning-for-consumer-lending-2/ Sat, 01 Oct 2022 09:23:12 +0000 https://creditunions.com/?p=92541 Callahan & Associates surveyed 333 credit unions to learn about automated decisioning practices in the consumer lending portfolio. Read about the results in this interactive article.

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]]> The credit union loan portfolio has expanded 45.8% in the past 5 years. To serve members more efficiently, credit unions are trying new strategies.

Anecdotally, Callahan & Associates has observed an uptick in the use of automated decisioning for the consumer loan portfolio.

Additionally, Callahan clients have requested more information on the automated decisioning activities of other credit unions in this area of business.

Read on for insights from the survey. Use the interactive features below to dig deeper into different asset-based ranges.

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]]> The Credit Union Guide To The Generation Gap https://creditunions.com/blogs/graph-of-the-week/the-credit-union-guide-to-the-generation-gap/ Mon, 03 Sep 2018 05:00:53 +0000 https://creditunions.com/?p=66419 Better understand how to serve different generations with this guide from Callahan & Associates.

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]]> Different generations require different conversations. Over the past few weeks, Callahan’s analysts have produced handy guides for credit unions looking to more fully understand the generations they serve.

Click through below to view the guides and learn more about these generations: What’s on their minds? What are they looking for? What life events are coming up?

The Credit Union Guide To: Generation Z

  • Born Between: 1997-2018
  • Percent of U.S. Population: 21.5%
  • What’s On Their Minds: Affording college

Read The Credit Union Guide To Generation Z

The Credit Union Guide To: Generation Y

  • Born Between: 1981-1996
  • Percent of U.S. Population: 24.7%
  • What’s On Their Minds: Being underemployed

Read The Credit Union Guide To Generation Y

The Credit Union Guide To: Generation X

  • Born Between: 1965-1980
  • Percent of U.S. Population: 20.3%
  • What’s On Their Minds: Planning for retirement

Read The Credit Union Guide To Generation X

The Credit Union Guide To: Baby Boomers

  • Born Between: 1946-1964
  • Percent of U.S. Population: 23.5%
  • What’s On Their Minds: Preparing for medical expenses

Read The Credit Union Guide To Baby Boomers

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]]> The Credit Union Guide To Baby Boomers https://creditunions.com/blogs/graph-of-the-week/the-credit-union-guide-to-baby-boomers/ Mon, 27 Aug 2018 05:00:19 +0000 https://creditunions.com/?p=66420 Different generations require different conversations. This interactive series shows how credit unions can serve all ages.

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]]> Download PDF

Read More In The Series

  • The Credit Union Guide To Generation Z
  • The Credit Union Guide To Generation Y
  • The Credit Union Guide To Generation X

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]]> The Credit Union Guide To Generation X https://creditunions.com/blogs/graph-of-the-week/the-credit-union-guide-to-generation-x/ Mon, 20 Aug 2018 05:00:10 +0000 https://creditunions.com/?p=66423 Different generations require different conversations. This interactive series shows how credit unions can serve all ages.

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]]> Download PDF

Read More In The Series

  • The Credit Union Guide To Generation Z
  • The Credit Union Guide To Generation Y
  • The Credit Union Guide To Baby Boomers

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]]> Credit Card Data Shows Green Lights And Yellow https://creditunions.com/blogs/industry-insights/credit-card-data-shows-green-lights-and-yellow/ Tue, 07 Aug 2018 16:27:00 +0000 https://creditunions.com/blog/credit-card-data-shows-green-lights-and-yellow/ Credit card availability and use are on the rise. So are delinquency and charge-off rates.

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]]> By most major measures, good and bad, credit card use is on the rise in the credit union industry.

The good: More credit unions are offering credit cards and more of their members are using them. The not so good: Delinquencies and charge-offs are on the rise.

Although correlation doesn’t equal causation, any rise in bad loans in a credit card portfolio bears close monitoring, especially in boom times when a downturn could be around any corner. ContentMiddleAd

First quarter delinquency and net charge-offs for credit cards was 1.24% and 2.87%, respectively, among the nation’s 5,646 credit unions. According to data from Callahan & Associates, those rates five years ago were 0.87% and 2.13%.

Also, whereas credit cards represented only 5.8% of the credit union industry’s total portfolio $10.1 billion out of $983.3 billion in the first quarter of 2018, they were responsible for 28% of total charge-offs. That’s up from 22.5% five years ago.

Click the tabs below to view graphs.

PERCENT OF CREDIT UNIONS WITH A CREDIT CARD

PERCENT OF CREDIT UNIONS WITH A CREDIT CARD

FOR U.S.a CREDIT UNIONS | DATA AS OF 03.31.18

Ten years ago, 51.1% of all U.S. credit unions offered credit cards. That’s risen 19.8% to 61.2%.

Source: Callahan & Associates.

CREDIT CARD PENETRATION

CREDIT CARD PENETRATION

FOR U.S. CREDIT UNIONS | DATA AS OF 03.31.18

The percentage of members holding a card from their credit union that offers them has risen a full two percentage points, or 13%, in the past five years.

Source: Callahan & Associates.

CREDIT CARD DELINQUENCY AND NET CHARGE-OFFS

CREDIT CARD DELINQUENCY AND NET CHARGE-OFFS

FOR U.S. CREDIT UNIONS | DATA AS OF 03.31.18

The net charge-off ratio for all U.S. credit unions has been creeping higher, at almost twice the rate as delinquent accounts.

Source: Callahan & Associates.

CREDIT UNION CHARGE-OFFS OVER TOTAL CHARGE-OFFS

CREDIT UNION CHARGE-OFFS OVER TOTAL CHARGE-OFFS

FOR U.S. CREDIT UNIONS | DATA AS OF 03.31.18

The proportion of credit card charge-offs to total charge-offs has risen in the past five years and spiked to 28.1% in the first quarter of this year.

Source: Callahan & Associates.

CREDIT CARD UTILIZATION

CREDIT CARD UTILIZATION

FOR U.S. CREDIT UNIONS | DATA AS OF 03.31.18

Credit card utilization the measure of how much members use their credit lines has remained fairly steady for the past five years, including for fourth quarter holiday spending spikes.

Source: Callahan & Associates.

That uptick in troubled credit card accounts is occurring alongside such signs of growth as the fact that the average credit card balance in first quarter 2018 was $2,895 up from $2,680 five years ago.

A higher proportion of credit unions also are offering credit cards: 61.2% of America’s credit unions offered credit cards as of March 31, 2018. That’s up 10.1 percentage points from 10 years ago.

That number might be rising because the number of credit unions is shrinking and those that survive are more likely to offer credit cards. To wit, among those credit unions that do offer credit cards, penetration is rising. As of March 31, 2018, the percentage of members that hold a credit union credit card was 17.3%. That’s an increase of two percentage points from five years ago.

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Despite the fact the average balance for credit cards is up, utilization is down. The utilization rate measures how much of their credit lines members, in aggregate, are using. The utilization rate was 31.1% as of March 31, 2018, versus 32.2% as of March 31, 2013.

Lower utilization could be the result of larger credit lines, restrained spending, or a combination of both. Regardless, it definitely shows that nearly 20 million credit union members that have a credit union credit card have another 68.9% of aggregate credit to spend.

That’s each member’s bottom line. The bottom line for credit unions is that credit cards as a product are profitable and growing, but credit unions should be aware of how increased delinquencies and charge-offs could affect members and the institution alike if there’s an economic downturn or even a recession.

 

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]]> The Credit Union Guide To Generation Z https://creditunions.com/blogs/graph-of-the-week/the-credit-union-guide-to-generation-z/ Tue, 07 Aug 2018 08:38:39 +0000 https://creditunions.com/?p=66428 Different generations require different conversations. This interactive series shows how credit unions can serve all ages.

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]]> Download PDF

Read More In The Series

  • The Credit Union Guide To Generation Y
  • The Credit Union Guide To Generation X
  • The Credit Union Guide To Baby Boomers

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]]> The Credit Union Guide To Generation Y https://creditunions.com/blogs/graph-of-the-week/the-credit-union-guide-to-generation-y/ Fri, 03 Aug 2018 05:00:03 +0000 https://creditunions.com/?p=66427 Different generations require different conversations. This interactive series shows how credit unions can serve all ages.

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]]> Download PDF

Read More In The Series

  • The Credit Union Guide To Generation Z
  • The Credit Union Guide To Generation X
  • The Credit Union Guide To Baby Boomers

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]]> Auto Lending By The Numbers (1Q18) https://creditunions.com/blogs/industry-insights/auto-lending-by-the-numbers-1q18/ Mon, 02 Jul 2018 05:00:00 +0000 https://creditunions.com/blog/auto-lending-by-the-numbers-1q18/ Credit union auto lending growth revs up top-line growth.

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]]> Read the full analysis or skip to the section you want to read by clicking on the links below.

DEPOSITS MEMBERS MORTGAGES CREDIT CARDS LENDING INVESTMENTS AUTO LENDING EARNINGS EFFICIENCY

Nearly 5,500 of the nation’s credit unions reported holding auto loans on their books in the first quarter of 2018. That’s 97% of the industry. These 5,485 credit unions held 23.5 million auto loans.

Credit union auto loans increased 10.8% year-over-year to reach $343.6 billion as of first quarter. Used auto loans jumped 10.0% year-over-year to total $207.8 billion. This segment represented 60.5% of the total loan portfolio. New auto loans increased 12.1% YOY and occupied the remaining 39.5% of the portfolio.

Auto was the industry’s second-most popular loan product, trailing only first mortgages, and accounted for 34.9% of the industry’s loan portfolio. Strong growth in both new and used auto lending underpinned the 9.7% growth the industry recorded in its overall loan portfolio. Indirect lending, which increased 16.6% year-over-year, also contributed to the industry’s top-line loan growth.

As of March 31, more than one in five credit union members held an auto loan with their credit union. Auto loan penetration for the industry was 20.6%. Three of the NCUA regions Central, West, and Southeast were above the national average. At 37.6%, Georgia reported the highest auto loan penetration of any state.

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As of March 31, used auto loans occupied 60.5% of the total loan portfolio.

Together, new and used auto loans comprised 34.9% of the industry’s loan portfolio, second only to first mortgages secured by 1-4 family residential properties.

Credit unions with more than $250 million in assets were more likely to have more than 50% of their auto portfolios in indirect. Smaller credit unions have tended to hold smaller indirect concentrations.

The NCUA Central Region led the five NCUA regions in auto loan penetration. A full 25.0% of midwestern credit union members financed auto loans with their credit unions.

Dig Deeper Into Your Auto Numbers

How does your auto lending portfolio stack up against peers?

Learn More

 

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]]> How Many Credit Unions Make Private Student Loans? https://creditunions.com/blogs/industry-insights/how-many-credit-unions-make-private-student-loans/ Mon, 11 Jun 2018 05:00:00 +0000 https://creditunions.com/blog/how-many-credit-unions-make-private-student-loans/ Student lending at credit unions increased 14.0% to $4.0 billion in the first quarter of 2018. Test your knowledge of student lending in this data quiz.

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]]> As of March 31, 2018, credit unions held $4.0 billion in private student loans. That’s up 14.0% from the first quarter of 2017. Credit unions are increasingly adding student loans to their portfolios as the movement works to provide affordable credit to young borrowers.

According to the Federal Reserve, outstanding student loan debt in America reached $1.5 trillion in the first quarter of 2018. Student loan debt currently exceeds both credit card lending at $977.0 billion and auto loans at $1.1 trillion.

Answer the questions below to test your credit union student lending knowledge.

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Click on the question to view the answer.

Question 1: Private student loans makes up what percent of the credit union loan portfolio?

0.47%. Despite years of steady growth, private student loans comprise only 0.47% of the industry’s loan portfolio. For only credit unions that make such loans, the portion of the portfolio held by student loans jumps to 1.04%.

Question 2: What percentage of credit unions held private student loans on their books as of first quarter 2018?

12.7%. Currently, 710 credit unions, or 12.7% of the industry, have student loans on the books. That’s up from 8.6% in the first quarter of 2013.

Question 3: What is the average credit union private student loan balance?

$7,885. There were 581,075 outstanding student loans held by credit unions as of March 31, 2018. The average balance of those loans was $7,885.

According to a 2016 study by College Board, the average graduate of a non-profit university carries $28,400 in student loan debt.

The number of credit unions offering student loans is growing. So is the average student loan amount.

Looking For Answers About Your Loan Portfolio?

It takes minutes to compare various aspects of your lending portfolio to other credit unions with Peer-to-Peer. Let Callahan walk you through your numbers with a custom performance audit. Sign up now.

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]]> Is Credit Union Auto Loan Penetration At An All-Time High? https://creditunions.com/blogs/industry-insights/is-credit-union-auto-loan-penetration-at-an-all-time-high/ Mon, 04 Jun 2018 07:01:00 +0000 https://creditunions.com/blog/is-credit-union-auto-loan-penetration-at-an-all-time-high/ Take this industry performance pop quiz from Callahan & Associates to learn about trends in credit union auto lending.

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]]> As of March 31, 2018, credit unions held $343.9 billion in auto loans. That’s up 10.9% from the first quarter of 2017.

At 35.0% of total lending, auto lending trailed only first mortgage lending for dominance in the portfolio. More than 2,400 credit unions nationwide hold 50% or more of their loans in auto.

Answer the questions below to test your credit union auto lending knowledge.

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Click on the question to view the answer.

Question 1: (True or False) With 12.2% year-over-year growth, the dollar amount of new auto loans outstanding surpassed the dollar amount of used auto loans outstanding.

False. New auto loan growth has outpaced used growth since the third quarter of 2012. However, used auto lending is still the larger segment and accounted for 60.5% of the auto portfolio for industry in the first quarter of 2018. New and use auto loans outstanding reached $135.9 billion and $208.0 billion, respectively, as of March 31.

Question 2: (True or False) Over the past 20 years, the average credit union auto loan amount has doubled.

False. The average credit union auto loan was $14,647 in the first quarter of 2018. That’s up 61.8% from $9,051 in the first quarter of 1998.

This might seem like a dramatic increase, but inflation plays a role. According to the inflation calculator from the Bureau of Labor Statistics, $9,051 in March of 1998 had the same buying power of roughly $14,000 today. Nevertheless, today’s average auto loan is still a bit higher. This could be because of the increased prevalence of new auto loans and the increasing price of cars. The average used auto loan at a credit union in the first quarter of 2018 was $12,396; that average increases to $20,267 for a new auto loan, which is in line with the Kelley Blue Book.

Question 3: (True or False) Credit union auto loan penetration is at an all-time high.

True. According to data from Callahan & Associates, 20.6% of members financed an automobile through their credit union in the first quarter 2018. Auto loan penetration has steadily increased from 15.8% in the first quarter of 2012 and is at an all-time high.

Membership is growing at credit unions across the country, and members are helping credit unions continue their strong auto lending trends. For example, despite climbing auto loan growth, the delinquency and net charge-off ratios declined slightly year-over-year.

Despite strong auto loan growth, credit union auto delinquency and net charge-offs are both down slightly year-over-year.

As auto lending ramps up over the summer, consider how industry trends are affecting your credit union and market.

 

Looking For Answers About Your Auto Portfolio?

It takes minutes to compare various aspects of your auto lending portfolio to other credit unions with Peer-to-Peer. Let us walk you through your numbers with a customer performance audit. Sign up now.

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