WASHINGTON–The average member relationship at credit unions has increased by $10,000 over the past decade, according to an analysis by Callahan & Associates.
The company said the increase comes as credit union hiring has not kept pace with membership growth.
According to Callahan’s, the average member relationship has grown steadily since 2012, averaging 4.5% compounded annual growth during that period and 6.8% since the onset of the COVID-19 pandemic in 2020.
“This increase was due in large part to the economic relief payments sent by the government, which eventually made their way to local credit unions,” Callahan’s stated.
The company noted that over the past decade, members have taken advantage of low interest rates to take out loans for homes, HELOCs, and cars, “deepening their relationship with their credit union in the process.”
Hiring Slows
“To accommodate the needs of a growing membership, credit unions hired at roughly the same rate they added members between 2012 and 2019; however, hiring slowed with the onset of the pandemic, and member growth has outpaced employee growth since 2020,” Callahan’s said in its analysis published on creditunions.com.
“Notably during the COVID-19 pandemic, credit union employment grew only 0.6% whereas membership grew 3.2%.”
The Recommendation
Callahan’s is recommending that with continued membership growth and an ever-deepening member relationship, credit unions should “ask whether their suite of products and employee base are giving members the attention and service they need. Whether it be faces at the branches, digital transformation, or member experience strategists, credit unions who put the member experience first can deepen member engagement.”
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