Credit union membership is up 4.7 percent year over year, the fastest growth rate in the industry’s history, according to CUNA Mutual Group’s latest Credit Union Trends Report. In August alone, credit union memberships rose a record 706,000, or 0.6 percent.
The report attributes the success largely to “robust demand for credit, solid job growth and comparatively lower fees and loan rates.”
CUNA Mutual Group’s report notes that membership growth is also being helped by effects of the Durbin Amendment housed in the Dodd-Frank Act, which caps the fees financial institutions can charge merchants to process debit card transactions.
This cap pertains to all financial institutions with more than $10 billion in assets including some credit unions. However, those financial institutions driving up their monthly debit card or checking account fees to make up for this loss of revenue are pushing consumers to their local credit unions that often offer low- or no-fee accounts.
Also of note from CUNA Mutual Group’s report:
- Credit unions’ loan balances grew at a 9.8 percent seasonally adjusted annual rate during August and savings balances rose at a 7.8 percent rate.
- Total credit union assets rose 1.3 percent in August.
- Credit unions increased their loan portfolios 1 percent in August.
- An estimated 5,686 credit unions were in operation at the end of August, down 11 credit unions from the month prior and down 208 from last year.
