The Louisiana Credit Union League announced, today, the release of the 2020 Credit Union Impact Report. This report highlights key investments credit unions across the state have made in their local economies. The credit union model is designed to invest profits back into members, helping Louisiana consumers retain more of their money.
More than 1.2 million Louisiana credit union accountholders received over $184 million in direct financial benefits during 2020. The amount members saved by choosing a credit union over other financial institutions is calculated through lower interest rates on loans, higher rates on deposit accounts, and lower or no service fees. On average, individual credit union members saved the equivalent of $145 each and member households received an average of $305.
“Our industry’s collaborative, not-for-profit structure allows credit unions to help consumers with products and services that are driven by need, rather than profit,” Gallman said. “Over the past year, credit unions have helped members build healthy financial futures and fostered trust between members and their credit union on a new level. As a result, credit unions have seen a membership growth of 2.1% over the past year compared to 1.1% the year prior.”
“Credit unions’ combined ripple effect in the broader economy can’t be ignored as their not-for-profit model reinvests community dollars back into local economies,” said Bob Gallman, president and CEO of Louisiana Credit Union League. “Louisiana credit unions generated a substantial $1.5 billion in economic impact to the state economy in 2020 and more than 9,500 jobs were supported by credit union spending and operations.”
In addition to economic benefits, the Louisiana Credit Union League launched a COVID-19 Member Engagement survey to gage the support provided. The results showed:
- Nearly $4,000,000 in waived fees
- More than $90,000,000 in mortgage loan forbearance or extensions
- More than 20,000 local jobs saved due to Paycheck Protection Loans disbursed
- More than $300,000,000 in consumer loan extensions
- More than $125,000,000 in commercial/business loan extensions
- 100 percent of survey participants offered some type of assistance
“Credit unions in Louisiana have continued to work tirelessly to help members through the financial realities of the COVID-19 pandemic,” Gallman said. “The hallmark of the credit union’s structure is service to members. In addition to continuing their operations, credit unions kicked it up a notch to offer additional assistance to members by waiving fees, extending drive-through hours, skip-a-payment options, loan modifications, emergency loans, and most importantly, financial counselling to help with decision making.”
In addition to making an impact on the state economy, the impact report reaffirms credit unions' efforts to empower their members by helping them make wise financial decisions. Approximately 79 percent of Louisiana credit unions offer financial counseling with 600 certified counselors throughout the state.
For more information, visit www.yourmoneyfurther.com.