Search
 

Fickle Lending May be Contributing to Membership Slowdown

MADISON, Wis. - Aside from mortgages, credit unions aren't doing much lending right now and that may be contributing to the slowdown trend in membership growth. There's been a slowdown in membership growth rates from 3% five years ago to 2% today, where it has stagnated over the past four...

By Michelle A. Samaad | Updated on March 15, 2005

MADISON, Wis. – Aside from mortgages, credit unions aren’t doing much lending right now and that may be contributing to the slowdown trend in membership growth. There’s been a slowdown in membership growth rates from 3% five years ago to 2% today, where it has stagnated over the past four years but overall the numbers have still increased according to data from CUNA’s economics and statistics department. Since loan growth is starting to get back on track to “normal” levels, CUs may see a bump in membership numbers as a result, said CUNA Economist Mike Schenk. The reason may be because as CUs attract a lot of new members through indirect auto lending offers, competitors are also vying for them. As rates go up, those competitors go away and CUs end up getting more indirect loans. Schenk said CUs should be encouraged that the current 2% membership growth rate is still double the rate of the nation’s population growth. Meanwhile, the movement is losing nearly 400 CUs each year, according to CUNA, with the current count at 9,274 for the U.S. and its territories and possessions. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.