MADISON, Wis. — Credit unions have put up an impressive membership growth rate early in the year, but that could settle back down as credit unions reprice their deposit products.
According to the CUNA Mutual Group's July Credit Union Trends Report, approximately 99,000 members joined in May bringing the total membership count to an estimated 90.6 million. That marks a gain of 1.2 million members over the first five months of 2008, said Dave Colby, chief economist with CUNA Mutual. He noted that the gains appear out of line with recent trends and will likely be revised as more details become available.
"Unless [credit unions] fail to lower deposit rates, most of this growth surge will likely be revised away," Colby said. "In 2005, we saw strong gains due to a rapid infusion of indirect borrowers. Our outlook calls for [credit unions] to purge indirect members as their loans pay off and it is very unlikely they will see a rapid replacement of these members, as the vehicle lending outlook remains bleak."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
