Credit unions less efficient than banks, study says
“Fewer employees is the trigger to producing high deposit rates and a better bottom line."
Credit unions are less efficient than banks and thrifts when it comes to assets per employee, according to new data from financial institution research firm Moebs Services.
According to the Lake Forest, Ill.-based company, thrifts averaged $9.7 million of assets for every employee, banks averaged $8.8 million of assets per employee and credit unions averaged just $5 million of assets per employee. Banks had 9.3% more employees than thrifts, but credit unions had 48.5% more employees than thrifts in the analysis, it said.
“Fewer employees is the trigger to producing high deposit rates and a better bottom line. There are many measures of employee efficiency, or less staff, but the granddaddy of all people ratios is millions of assets per employee,” the study said.
Credit unions with $5 billion to $10 billion in assets were the most efficient types of credit unions, with $7.1 million in assets per employee. The most efficient banks and thrifts had $25 billion to $50 billion in assets and had $10.2 million of assets per employee.
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