The Credit Union Membership Growth Problem
by Tom Glatt Jr
An information firm catering to the credit union community recently posted online that credit unions grew membership “4.0% annually, faster than their annual pace of 3.5% in June.” This statement was based on an analysis of early filers of 3rd quarter credit union call reports. While this statistic may be factually correct, this information belies the true credit union membership growth experience.
Consider the following data, compiled from complete second quarter call report filings:
- The average member growth rate was approximately .98%
- A full 47% of all credit unions (3,325) experienced zero to declining membership growth
- Of the credit unions experiencing negative membership growth, the average decline was 6.17%
The point in showcasing this most basic information isn’t to suggest that the presentation of 4% or 3.5% growth in membership is incorrect, or to tarnish the growth success some credit unions are experiencing. It is simply to drive an acknowledgement that for nearly half of all credit unions, membership growth does not exist – at all. If not corrected, this lack of membership growth in so many credit unions will result in a very real industry crisis.