Monday, December 03, 2012
President’s Message December 2012—CU Growth Strong in Q3
Dan Egan, President, Massachusetts Credit Union League
The National Credit Union Administration (NCUA) just released third quarter data for federally insured credit unions and numbers show continued growth in assets, membership, savings and loans. In Massachusetts, assets have grown 3.26% to $30,724,000 in the first nine months of 2012. During the same time, membership has grown 2.05% to 2,541,000. Nationally, membership grew by 742,847 new members in the third quarter of the year to 93.9 million.
The membership growth coincides with the findings of an Ernst and Young global consumer banking survey released on November 30, 2012. The survey of over 28,000 financial institution customers, including credit unions, shows an increase in the number of financial institutions an individual consumer uses (those who use only one institution fell from 41% last year to only 31% this year), and a rise in the number planning to change financial institutions (from 7% last year to 12% this year).
Although dissatisfaction with high fees continues to be the most commonly cited driver of attrition (50%) according to the survey, poor branch experience (31%) and the lack of personalized contact or service (26%) are climbing the list of reasons for changing providers. The report states, “People are more willing than ever to shop around and want control over what they pay for the service they receive.”
As people search for lower fee structure and more personal service, credit unions keep gaining attention as a better, local, and lower cost alternative to banks. During this holiday season be sure to make your members aware of the great gift they have in being part of a worldwide cooperative structure that is based on the premise that local cooperative control is the best alternative for peoples’ financial institution needs. Best wishes to everyone for a peaceful, happy and healthy holiday season and New Year.