Attracting new members to your credit union isn’t just about offering great products—it’s about making sure potential members see the value in joining. Yet, with increasing competition from digital banks and shifting consumer habits, growth has become more challenging than ever.
While some credit unions continue to thrive, others struggle to maintain or expand their membership base. The difference? A strategic approach. Sustainable growth isn’t about quick fixes—it’s about understanding the key drivers of membership expansion and retention.
In this post, we’ll break down the key ratios that influence membership growth and provide actionable strategies to help your credit union expand sustainably.
Credit union membership grew in 2024, but not for everyone. The median number of members per credit union declined by 0.3%, signaling a challenge—especially for smaller institutions.
Smaller credit unions face tough competition when it comes to growth:
With fewer resources and smaller teams, standing out in the financial services industry takes strategy. So, where should your credit union start?
Growing your credit union isn’t about quick fixes—it’s about strategic, sustainable growth. While no single metric tells the whole story, certain key ratios have a direct impact on membership growth.
Monitoring and improving these numbers can help you build a stronger, more engaged membership base.
Here are key influential ratios to track:
These ratios don’t exist in isolation—improving one can influence other areas of your credit union’s operations. A strong retention rate, for example, often leads to higher product penetration, while better lending strategies can improve overall return per member.
The goal isn’t just rapid expansion but consistent, scalable solutions that strengthen both member engagement and long-term success.
So, how can you improve these ratios to drive real growth? Let’s break it down.
This ratio measures the percentage increase or decrease in your credit union’s total members over a specific period. It reflects how well you’re attracting and retaining new members.
While the goal of growth is clear, this ratio provides valuable insight into how effectively your credit union’s marketing, products, and services attract and retain members.
Tracking it over time can help identify trends, measure the impact of strategic initiatives, and refine your approach to sustainable growth.
To improve this ratio, consider these strategies:
Improving your Membership Growth Rate is about more than just numbers—it’s about strengthening your credit union’s reach and value in the community.
Keep reading: The Ultimate Guide to Grow Your Credit Union
Sustained growth isn’t just about attracting new members—it’s about keeping the ones you already have. Strong retention not only stabilizes membership but also fuels future growth through deeper engagement and word-of-mouth advocacy.
As CU Times notes:
Source: CU Times
Reducing attrition means creating a member experience that encourages long-term loyalty. Here’s how your credit union can improve retention:
By prioritizing member retention, your credit union can build a foundation for lasting growth while reducing the pressure to constantly replace lost members.
Product penetration rate is a valuable metric for identifying opportunities to boost member engagement and expand your product offerings. By increasing product adoption, credit unions can enhance member satisfaction, strengthen relationships, and attract new members.
Focus on products that meet member needs and have high appeal to potential members. Think about expanding into services like auto loans, credit cards, or digital banking features that increase stickiness.
Use member data to personalize your marketing efforts, ensuring that the right products are promoted to the right individuals.
Segment your membership based on demographics, needs, or behavior, and customize your product offerings to ensure relevance. For example, offer specialized savings accounts to young adults or auto loan packages to growing families.
Increasing your product penetration rate strengthens your credit union’s ability to retain existing members and attract new ones by offering a more comprehensive and relevant product suite.
Return per Member (RPM) is an essential financial metric that measures the revenue or value generated by each individual member of your credit union. It provides valuable insight into the profitability of your membership base and can help guide your strategies for sustainable growth.
By tracking RPM, credit unions can identify opportunities to enhance profitability and optimize member services. A higher RPM generally indicates stronger engagement and more effective monetization of your offerings.
To improve RPM, consider:
Improving Return per Member not only boosts your bottom line but also strengthens your credit union’s long-term sustainability by improving the value delivered to each member.
The Loan-to-Member Ratio (LTM) is more than just a financial metric—it’s a reflection of how well your credit union serves its members’ borrowing needs. A strong LTM signals that members are actively utilizing loan products, which not only strengthens financial performance but also fuels membership growth.
When members see that your credit union offers competitive, accessible loan options, they are more likely to join and stay engaged. Many new members seek out credit unions specifically for better loan opportunities, whether for auto financing, home loans, or personal lending. By ensuring your credit union meets these needs, you create a compelling reason for potential members to choose you over larger banks or online lenders.
By strengthening your Loan-to-Member Ratio, you’re not only increasing loan engagement—you’re also positioning your credit union as a trusted lending resource.
When members know they can turn to you for affordable, flexible financing, they’ll be more likely to join, stay, and refer others, creating a cycle of sustained growth.
Growing your credit union takes the right tools, strategies, and technology to attract and retain members. At FLEX, we provide scalable solutions and seamless integrations designed to help smaller credit unions expand their membership and enhance member engagement.
Ready to take the next step? Click the button below to discover how FLEX supported a credit union similar to yours in achieving growth.