ARLINGTON, Va.—Compliance burden remains a key driver of CU consolidation, according to NAFCU’s 2018 Report on Credit Unions.
The Report looks at five key areas: industry trends, credit unions' service offerings to their members, findings from the Fed's Survey of Consumer Finances, NAFCU and credit union policy priorities, and how credit unions are adapting to financial technology.
Highlights and recommendations from the Report include:
- The credit union industry occupies only a small share of the overall financial services landscape, but provides a reliable source of credit to local communities in good times and bad.
- It is vital that credit unions retain reliable access to the secondary mortgage market.
- Investing in technology is a priority for credit unions, as evidenced by the growth in the number of institutions offering remote deposit capture, mobile payments, and other electronic services.
- Credit unions have enjoyed rapid membership growth in recent years and membership penetration is consistent across most age cohorts.
- A primary concern of credit unions and their members continues to be ensuring that our nation’s retailers have data security standards to protect consumers' sensitive financial information.
- Regulators have taken tentative steps toward increasing their oversight of fintech firms, but non-bank lenders still enjoy a tremendous advantage over the highly regulated credit union industry.
‘Critical Role Played’
"Our 2018 NAFCU Report on Credit Unions shows that credit unions play a critical role in the economy to the tune of $16 billion annually and continually work to meet the needs of their local communities and members," said NAFCU President and CEO Dan Berger. "The credit union industry remains well-capitalized, financially sound and committed to its members – which is why the industry saw over 4% membership growth during the past year.
"More than 114 million Americans are members of a credit union, where 300,000 credit union employees work daily to provide them with the best service possible. However, regulatory and compliance burdens still weigh heavily on the industry's ability to serve its membership,” added Berger.
The information compiled in the report is based on the association's Federal Reserve Meeting Survey, an annual assessment of NAFCU members covering topics discussed in the report. The report also draws on data collected for NAFCU's Economic & CU Monitor and CU Industry Trends Report, the trade association explained.