Callahan & Associates reports U.S. credit unions attract record member deposit relationships
WASHINGTON, DC (October 31, 2013) — According to the latest data compiled by Callahan & Associates from both bank and credit union regulatory agencies, credit unions retained historically strong deposit market share while member deposit balances reached a record high. Credit unions captured 8.9 percent of total U.S. insured deposits as of June 30, 2013. The data shows consumers are increasingly turning to credit unions for their depository relationship needs.
Alaska captured the highest deposit market share among U.S. credit unions as of June 30, 3013. According to Callahan & Associates market analysis tool, Peer-to-Peer, 40.6 percent of total deposits in Alaska is now held at Alaska credit unions. New Mexico and Washington ranked second and third with 21.3 percent and 21.0 percent in deposit market shares respectively.
Credit unions have also increased their deposit market share in thirty states since June 30, 2012. Some states in particular showed significant annual market share increases. For example, credit unions in Oregon increased their deposit market share with a +2.4 percentage point increase, capturing 19.7% of the total market. Iowa credit unions increased their market share by +1.3 percentage points and now hold 12.4% of the deposits in the state.
Overall, total deposits at credit unions increased by $41.1 billion annually to reach $921.5 billion as of June 30, 2013. Regular share balances (also commonly referred to as savings accounts) increased 9.7 percent, money market share balances increased 5.5 percent, and share draft balances (also referred to as checking accounts), increased 8.6 percent. As of June 2013, the number of share draft accounts increased 6 percent annually, more than doubling the credit union membership growth rate posted during the same time. Considered an indicator of a primary financial institution relationship, members’ usage of credit union checking accounts have risen from 45.6 percent in June 2008 to more than half of all members (52.1 percent) at mid-year 2013.
Over the five-year period that this achievement has happened, overall U.S. credit union membership has grown by 7 million new members and credit unions have experienced an astounding 33.9 percent member deposit growth, or $233 billion in new deposits, in the last five years. The average member deposit balance now totals more than $9,500. “These numbers demonstrate that consumers are becoming more engaged in core credit union savings solutions and at the same time making the credit union their preferred financial institution,” states Scott Patterson, Vice President at Callahan & Associates.
About Callahan & Associates
Callahan & Associates is an independent voice within the credit union industry providing trusted industry expertise in a comprehensive package allowing credit unions and credit union partners to deliver the best service and products to their audiences.
Visit p2psoftware.com to learn more about Branch Analyzer, an online market share and performance analysis tool built into Callahan’s Peer-to-Peer that helps credit union professionals identify local competitors and analyze their market share and performance from the state level to the branch level.