Steve Rick, CMG
MADISON, Wis.—As CUToday.info explores during 2015 how well CUs are building relationships with new members, CUNA Mutual Group’s chief economist, Steve Rick, said the latest data show credit unison are doing a good job of cross-selling new members.
“Membership growth right now is the fastest we’ve seen since 2003—through November up 3.9% year over year,” said Rick, who recognized the impact auto loans—particularly indirect—are having on the results.
Over the last 12 months, credit union auto loan balances are up a robust 21%.
“In addition to the new members credit unions are getting the checking accounts, which we know leads to the PFI relationship,” said Rick. “You get the checking, then direct deposit, then the debit card . . .”
In 2011, the year CU membership growth began to noticeably ramp up, 50.3% of all credit union members had a checking account. Today the percentage is 54.4%. “That is a four-percentage-point movement, which is significant,” said Rick.
What also indicates credit unions are cross-selling new members effectively is the solid loan growth credit unions are enjoying is spread across virtually the entire spectrum of lending, said Rick, who added that if the loan growth was limited to a few products that would suggest credit unions are not cross-selling well.
CUToday.info is exploring membership penetration and how credit unions are doing in building walletshare as part of a year-long series called “100 Million: Now What?”
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