WASHINGTON–With fourth quarter data now in on credit union performance, 2020 concluded with four trends that deserve attention, according to an analysis released by Callahan & Associates.
Overall, said Callahan’s, credit unions played a “key role” in helping members to recover during a difficult economic year, and “year-end numbers show just how much members turned to their financial cooperatives in these trying times, setting new records for deposit and loan growth and more.”
During a Trendwatch webinar hosted by the company, Callahan & Associates said whole-year 2020 NCUA data offer four trends that are worthy of note, including:
- Credit unions helped members take advantage of historically low rates, lowering monthly payments at a time when managing cash flow was critical for many. Fueled by a 62.6% surge in mortgage originations, loan production among the nation’s credit unions reached $680.3 billion in 2020.
- Consumers turned to their credit union accounts when stimulus money hit. The industry saw share balances grow a record 20.4% and $272.9 billion in a single year, with regular shares, share drafts, and money market accounts all posting record growth rates and only share certificates showing a decline.
- The percentage of members with checking accounts – considered a key measure of engagement – hit 60% for the first time as consumers continue to turn to credit unions for a no/low fee checking option.
- Total membership reached 125.9 million, up 3.4% from 121.7 million at the end of 2019 and showing that American consumers trust and rely on credit unions for their financial needs.
‘Belief-Driven Buyers’
“Americans turned to their credit unions in record numbers in this remarkable year just ended, and the movement responded,” said Callahan President and CEO Jon Jeffreys in a statement. “Engagement continues growing in depth and breadth and we’re excited to see where the future leads as the nation’s member-owned financial cooperatives continue to grow their impact by turning new challenges into new opportunities.”
During the webinar, Seth Schaefer, president and CEO of the $1.1-billion Rivermark Community Credit Union in Beaverton, Ore., shared his CU’s efforts to increase brand strength and market share by offering competitive products and services through a lens of not-for-profit community impact, Callahan’s reported.
“That’s how we appeal to belief-driven buyers,” Schaefer said. “That’s a card we can play that banks can’t.”
A recording of the Feb. 11 Trendwatch can be viewed here.