Act Small to Gain Trust
[Editor's Note: This article was previously published in Credit Union Times, and has been modified.]
There is no doubt that the credit union industry has been and still is going through quite a bit of change. From mergers and acquisitions, to regulatory changes, to incorporating technology and attracting younger demographics. Overall, despite the shrinking number of credit unions; membership, loans and share numbers are up. According to Callahan’s Trendwatch Year-End 2017, The Annual Report for the Industry data, total credit union membership reached 112.9 million, up from 108.2 million at the end of 2016. While new auto loans (13.2%), used auto loans (10.3%), first mortgages (10.2%) and credit cards (9.2%) lead the way in annual growth among loans outstanding, and year-over-year growth in share drafts (10.0%), regular shares (7.1%) and share certificates (6.3%) outpace the rest of the portfolio. However, after being somewhat of the “anti-bank”, many argue that credit unions today are beginning to minimize the fact that they are credit unions and changing their profiles to look and feel more like retail banks in order to compete with their financial counterparts. Many have also been incorporating as many banking lingos in their messaging as they can. However, this may not be a good strategy.