With the one-year anniversary of Bank Transfer Day approaching, credit unions continue to tout how the national financial institution-switch movement helped catapult their new member figures into record territory. But that success has forced some credit unions to deal with unprofitable new accounts, an industry expert said.
"We may have underestimated the Bank Transfer Day switching lag and ensuing membership gains," said Dave Colby, chief economist at CUNA Mutual Group. "Further, if members gained due to BTD are experiencing the real benefits of credit union membership, this surge will continue, as they spread the word."
The latest industry estimates showed credit unions added 261,000 members in July for a total of nearly 95.6 million members. The year-to-date gain of 1.6 million is three times the same period results in 2011 and greater than any year since 2002, Colby said. The total year over year membership increase was 2.4 million.
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