WASHINGTON–Perhaps as the result of their ability to develop strong relationships with their members, credit unions between $500 million and $1 billion in assets are outpacing national averages in share draft, member business loan, and auto loan penetration, according to second quarter analysis from Callahan & Associates.
At 57.5%, share draft penetration at credit unions in the $500 million to $1 billion asset range tops the 55.5% average posted by all U.S. credit unions by two percentage points. This indicates that these credit unions are earning members’ trust and becoming their primary financial institution.
The ability to secure auto loans is another strength for credit unions in this asset range, closing the second quarter with a 20.1% penetration rate, according to Callahan’s. Not only does this figure best the national auto loan penetration average of 19% by one percentage point, it’s a year-over-year increase over the 19% figure posted by credit unions between $500 million and $1 billion in 2Q 2015, the company said.
According to Callahan’s, credit unions between $500 million and $1 billion in assets are also showing an enhanced ability to secure member business loans. MBL penetration hit 0.4% through the first half of 2016. That’s 20 basis points higher than the average of 0.2% for all 6,011 U.S. credit unions tracked by Callahan & Associates in the second quarter, and 10 basis points higher than the 0.3% second quarter 2015 average for credit unions in the $500 million to $1 billion asset range.
“Considering the various categories listed, credit unions in the $500 million to $1 billion asset range appear to be doing an exceptional job engaging members across the board,” said Michelle Parker, senior industry analyst at Callahan, in a statement. “This can be viewed as a representation of product quality and the stellar work being done to market these products.”