Two Products That Will Increase Credit Union Growth

Over two years ago CUNA announced that the credit union industry in the United States had reached the significant milestone of 100 million members. That number represents approximately 43% of the economically active population.¹ The success of credit union membership growth stems in large part from the trust factor, where public opinion of CU's ranks higher than banks, especially since the recession of 2008. A commitment to product development by CU executives has also contributed to sustained growth in the industry, particularly in two product areas: mobile banking and mortgage lending.

Mobile banking has played such a large role in the success of credit union growth, a study earlier this year indicated that 8 of the 10 most popular mobile banking apps were in fact deployed by credit unions.² The focus on mobile banking apps has been especially appealing to millennials, a generation that credit unions recognized as both a necessity for survival, and an opportunity for success. In What Services do Your Members Actually Use your Mobile App for?, it was shared that 53% of smartphone owners with a bank account had used mobile banking in the past year and that mobile banking logins now outpace desktop banking logins. The top three mobile activities continue to be checking account balances, transferring money and receiving alerts. Designing your mobile app to appeal to your members and what they are using it for will strengthen your credit union's position in the marketplace.
When it comes to mortgage lending, 10 Fast Facts About Credit Union Mortgage Lending, there has been tremendous growth in credit union mortgage lending over the past 10 years. Credit unions are known for having lower fees on their lending products, which is a contributing factor to the remarkable growth rate in credit union mortgage lending. Since 2005, credit unions grew their share of the mortgage lending market from 1.9 percent of all originations to 11 percent in 2015. And that number is showing no signs of stopping as 2016.

It's important to note that not all credit unions are thriving. Geographic location, status of the member base you serve and select sponsor fate are all factors out of your control. However, if you are a struggling credit union, it warrants a look at your product offering and member services to ensure they are keeping up with the competition. What has been successful for one credit union does not make it applicable to all, but no doubt lessons can be learned. For example, Transtar Federal Credit Union of Houston, Texas was able to implement a seamless paperless environment to make their loan documentation easier, as well as focus on updating their core with mobile banking transactions. With Check 21 and remote deposit capture they saw the ability to promote better service and savings to credit union members, and position themselves to take advantage of the opportunity for growth the industry is presenting.