Loan growth continues to be a pressing priority for many credit union executives.

According to a new TransUnion survey of 64 credit union leaders, 72% of them said loan growth as the most significant issue facing the credit union industry this year.

More than half (57%) identified auto loans as the biggest opportunity for growth. Trailing by a wide margin were deposit accounts, which were the second most frequently cited by significant business opportunity among survey respondents, the data showed.

“With delinquency rates at historic lows and consumers prioritizing auto loans above other credit instruments, credit union executives continue to view auto loans as a significant driver of near-term growth,” said David Dodson, credit union vice president in TransUnion's financial services business unit.

As a result, credit union members should anticipate strong auto loan financing offers throughout 2014, Dodson noted.

Additional concerns cited by credit union executives in the TransUnion survey include:

Increased regulation: regulation was cited by 34% of respondents as their biggest challenge to loan growth in 2014, making it the second most cited top challenge. In all, regulation was cited by more respondents (57%) as being among their top challenges than any other issue.
Expanding membership: concerns among credit union executives about expanding membership increased by 26% in 2014 (from 6% in 2013 to 33% in 2014).
Competition for greater market share: 54% of respondents cited competition as their biggest challenge to loan growth in 2014, up from 40% in 2013.

TransUnion's 2014 survey was conducted at the CUNA Governmental Affairs Conference in Washington in late February. All respondents were based in the U.S. and are board members, executives or in managerial roles at their credit unions.

Last year, TransUnion conducted a similar survey at CUNA's GAC where of the 104 executives surveyed, half also said auto loans was the best way to grow loan portfolios.

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Loan Growth Still a Top Priority: TransUnion Survey

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