Credit Union Leaders In 4 Member Metrics

Membership at the nation's credit unions expands, and the average member relationship deepens.

 
 

Credit union membership exceeded 110 million in the second quarter of 2017, and the movement wrapped up June with 110.6 million members. This is a 1.2% increase over first quarter and a 4.3% increase year-over-year.

In the past year alone, U.S. credit unions have attracted more than 4.5 million net new members. Credit unions with more than $1 billion in assets posted the highest member growth — 7.3% year-over-year.

On average, credit unions spent an annualized $335 per net new member on educational and promotional expenses in the second quarter — a 7.4% year-overyear decrease. Larger credit unions, on average, spent less on educational and promotional expenses per net new member. For example, credit unions with more than $1 billion in assets spent $223 per net new member in the second quarter of 2017. By comparison, credit unions with $50 million to $100 million spent $1,250.

 

 

 

Furthermore, larger credit unions reserved a greater amount of capital per net new member. Credit unions with more than $1 billion set aside $163 more per member than the national average of $1,382, whereas credit unions with $50 million to $100 million reserved $319 less per member than the national average.

The average member relationship — total loans plus shares less member business loans divided by total members — at U.S. credit unions was $18,149 as of mid-year. That’s an increase of nearly $800 annually, or a 4.6% bump year-over-year.

Despite membership at credit unions growing annually, the number of potential members is increasing even faster. Total members as a percentage of potential members has been gradually declining and was 4.0% as of second quarter 2017.

On average, credit unions across the nation served 385 members per employee as of June 30, 2017. To ensure exceptional service, credit unions work to optimize the balance of members to employees.

Click through the tabs below to see the top 10 credit unions in each leader table.

 

 

See the rest of these tables and explore dozens more along with hundreds of pages of credit union performance data in the 2018 Callahan Credit Union Directory. It’s the gold standard for reliable insight. Read the digital download today.

CASE STUDY

A Closer Look: Boosting Member Service With A Homegrown Check Hold System

Patelco Credit Union | Pleasanton, CA | Assets: $5.9B | Members: 316,266

Patelco Credit Union is using a homegrown tier system for check holds to improve the member experience.

Called Co-Relate, the system uses relationship scoring to create five levels of fund availability for checks presented in a branch.

Relationship scores are based on factors such as number of accounts and account activity as well as how long the depositor has been a member. Scores can change based on new delinquencies or product and service usage.

Patelco refreshes tier levels — which range from $5,000 to $50,000 — every month. And because the credit union does this through its core processing system, there is a consistent member experience across the organization.

Co-Relate has reduced member phone calls to the contact center by 20% to 25% since its December 2015 launch, says Lani Apolonio, Patelco’s vice president of operations.

“It takes away some of the judgment calls, so we don’t have members getting immediate funds at one branch and then not at another,” the 37-year Patelco employee says. “It has helped us provide a much more consistent member experience.”

The Co-Relate tiers also apply to checks members deposit elsewhere in the country.

“We want to ensure equitable treatment to members no matter where they go and give them predictable access to their funds,” Apolonio says. “That helps them have better control of their finances.”

Checks that don’t pass a routine inspection at the window are still subject to a two-day to four-day hold. And a different set of risk rules are in place for mobile deposits.

“Depending on the image, a check might end up on review,” Apolonio says. “Certain dollar amounts automatically go to risk review. If we have reason to believe a check will not pay, we delay it and email the member.”

Although the new hold system might reduce fees income in the form of returned checks, the credit union says the payback comes in deepening the member relationship.

“More member trust leads to more member participation in our other products and services,” Apolonio says.

Read The Whole Story

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Dec. 25, 2017


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