The reverse tier savings account that gives more to those with less
Canvas Credit Union’s 18-month-old account was designed with younger members in mind and has attracted millions in deposits to the Colorado cooperative.
The credit union industry’s loan-to-share ratio hit a first quarter high of 82.3% as of March 2019, continuing a half-decade-long trend of loan growth surpassing deposit growth. On the institution level, 236 credit unions at first quarter are 100% or more loaned out; that’s compared to 214 last year and 159 the year before that.
As credit unions face liquidity constraints stemming from robust loan growth without the deposit growth to match, some institutions are re-thinking legacy products to catch the eye — and wallet — of potential savers. Canvas Credit Union($2.6B, Lone Tree, CO) is no exception.
At first quarter, Canvas’ 96.8% loan-to-share ratio ranks 10th highest among Colorado credit unions and third among the state’s seven credit unions over $1 billion in assets. Led by a large auto loan program, more than half of them indirect loans, Canvas’ recent loan has exceeded 20% each quarter between first quarter 2014 and third quarter 2017, though now it more closely aligns with national average.
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