Share draft penetration increased 1.04 percentage points year-over-year and was at 57.2%. As of year-end 2017, there were 64.4 million credit union share draft accounts. That’s 3.7 million more accounts than at year-end 2016.
Share draft accounts are a general indicator that a member uses the credit union as their primary financial institution. As of fourth quarter 2017, credit unions with more than $1 billion in assets had a 61.5% average share draft penetration — the highest of any asset group at year-end.
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This could be because credit unions with larger asset sizes tend to offer more robust technology offerings and improved convenience. For example, among credit unions with more than $500 million in assets, 40.2% allow members to open a new share account online. That drops to 31.8% for credit unions with less than $500 million in assets. Furthermore, 40.9% of credit unions greater than $500 million in assets offer remote deposit capture, whereas 17.9% of credit unions less than $500 million in assets offer it.
At 61.5%, credit unions with more than $1 billion in assets had the largest share draft penetration.
Core deposits in NCUA’s Western Region comprised 77.6% of the share portfolio.
Share balances rose $66.6 billion and hit $1.2 trillion at year-end 2017.
Share balances increased year-over-year for nearly every product in the portfolio.
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