CUNA President/CEO Jim Nussle said Friday at the Southeast Credit Union Conference and Expo that he is concerned about the future of credit unions.
To illustrate his concern, Nussle displayed a graphic on the big screens that told the story.
In 1992, about 41% of all the assets were managed by the top 100 financial institutions. That number grew to 75% in 2016. In that same year, about 53% of total assets were managed by community banks. That number has declined to 17% in 2016. For credit unions, market share was 5.6% in 1992, and while it has ebbed up and down over the last 25 years, credit union market share edged up to 6.8% by the end of last year.
“The good news is that (we have) about 110 million members with $1 trillion in assets, but we’re not moving and we’re not growing,” Nussle said. “But the point I look at when I see this chart is what’s happening with the rest of the market and why is it happening. You see the smaller, community banks? I would argue the biggest story of this chart is that they are getting their lunch eaten…handed to them. Their options are running out. They had more than half of the market at one point in time and now are ready to go out of business.”
continue reading »