August 6, 2014
100 million memberships reached at credit unions nationwide
2.24 million memberships in the Hoosier state
(WASHINGTON, D.C. and INDIANAPOLIS) -- Nationwide, credit unions have reached and surpassed 100 million memberships – equating to one in every three Americans.
“We are pleased that Indiana credit unions have played such an important role in this national milestone,” said Indiana Credit Union League President John McKenzie. “With 2.24 million credit union memberships in the state, more than a third of Indiana’s population has access to the benefits of belonging to member-owned, not-for-profit financial service providers.
As financial cooperatives, credit unions have always been a trusted place for quality financial services, offering better rates and lower fees. Additionally, their status as a source for locally rooted loans for consumers and small businesses continues to be an advantage for millions of people. Over the last five years, Hoosier credit unions saved their members (including thousands of small businesses) an average of more than $100 million per year in total, compared to the fees and rates the members would have faced if their only option would have been to use for-profit financial institutions.
The national 100 million memberships count is based on data collected from credit unions and compiled by The Credit Union National Association (CUNA) in its June 2014 “Monthly Credit Union Estimates.” CUNA estimates that credit union memberships expanded by 2.9% in the past 12 months (June 2013 to June 2014), and the 100 million mark was eclipsed in June. This represents a continuing acceleration of membership growth: In 2013 memberships expanded by 2.5% and in 2012 memberships grew 2.1%. Nationally, credit unions added a total of 2.85 million additional memberships over the past year - the largest reported increase in more than a quarter century.
In Indiana, deposit growth has been strong over those same time frames as more people are choosing credit unions for their financial service needs. For 2012 through the first quarter of this year, Indiana credit unions have experienced a 14% increase in deposits, reaching $19.3 billion.
“Clearly, there is growing recognition for credit unions among consumers,” said CUNA President and CEO Bill Hampel. “They increasingly understand that a credit union places their interests above all else, particularly in returning financial benefits to consumer members in the forms of lower rates on loans, higher returns on savings, and lower and fewer fees.”
It’s the structure of credit unions – as not-for-profit, democratically led and cooperatively owned financial institutions – that allows credit unions to maintain this focus on returning financial benefits to members. In fact, by doing so, credit unions have earned the satisfaction and trust of their existing members – and are attracting even more.
At least two key measurements of consumer attitudes have recently underscored the reputation that credit unions have built among their members. At year-end 2013, the American Customer Satisfaction Index (ACSI) found, for the fifth straight year (which is every year that credit unions have appeared on the index), that credit unions lead banks in customer satisfaction (scoring 85 out of 100, compared to 78 for all banks).
In 2013, the Chicago Booth Kellogg School Financial Trust Index showed that consumers trust credit unions more than banks. The index (which is sponsored jointly by the Kellogg School of Management at Northwestern University and the University of Chicago Booth School of Business) showed trust in credit unions is 62% while trust in big banks is 28%.
How much is 100 million?
- To drive 100 million miles, a race car would have to take 40 million laps around the Indianapolis Motor Speedway.
- You could fill Lucas Oil Stadium for a Colts game 1,500 times to equal 100 million.