Analytics, Autos, And Attracting Deposits

Five can't-miss data points this week on CreditUnions.com.

 
 

This week, CreditUnions.com has its sights set on powered-up analytics, autos as a driver of industry lending, attracting and retaining deposits, and more.

Here are five can't-miss data points:

2 Years

The ability of staff members at Lake Trust Credit Union to interpret and leverage data has spread across the enterprise in the two years since the Michigan cooperative deployed a business intelligence team. Today, the credit union’s BI team helps Lake Trust managers integrate separate data sets into dashboards that deliver deep levels of insight into the operation’s performance.

Read: Lake Trust Powers Up Analytics

 

 

$365.3 Billion

Auto lending at U.S. credit unions was relatively robust in the third quarter despite rising interest rates and slowing growth in the loan portfolio. Up 10.8% annually, total auto lending expanded $35.8 billion over the year to $365.3 billion as of Sept. 30, 2018. This is the sixth consecutive year of double-digit growth in the third quarter. Total auto loan balances at credit unions have more than doubled since the third quarter of 2012, and auto lending continues to be strong despite growth slowing and interest rates rising in the overall loan portfolio.

Read: Automobiles Drive Credit Union Lending

3

The Jan. 1 merger of Progressive Credit Union into Pentagon Federal Credit Union was billed as an emergency takeover caused by capital and concentration risk problems at the troubled taxi cab medallion lender, the last of its kind. But there is more to be learned from this event than the predictable positions of the participants and observers. I believe there are at least three takeaways that anyone concerned about the future of the cooperative model should consider.

Read: The NCUA’s Taxi Medallion Vendetta Threatens All Credit Unions

84.83%

The credit union industry’s loan portfolio has grown rapidly in the past five years. In the third quarter of 2018, the industry’s loan-to-share ratio reached 84.83%. This is the highest it has been in the past two decades. In fact, as of Sept. 30, 2018, 379 credit unions had loan-to-share ratios greater than 100%. Five years ago, 135 credit unions reported ratios greater than 100%. Here are six ways two credit unions have found success attracting and retaining deposits.

Read: 6 Ways To Attract And Retain Deposits

1921

Since its founding in 1921, Infinity Federal Credit Union has embraced change. The first credit union in the state of Maine began as Telephone Workers Credit Union of Maine. Later, the cooperative expanded geographically into New Hampshire to become Telco of New England Federal Credit Union. Today, Infinity is a community-based cooperative serving Cumberland and York counties and the city of Bangor. It no longer operates in New Hampshire, opting instead to focus on its goal of eventually serving more members than any other credit union in the state of Maine. But Maine is a state that is changing quickly, and Infinity puts in the work to remain relevant. Here's how.

Read more: How To Teach An Old State New Tricks

Happy Reading!

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Jan. 28, 2019


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