NAFCU releases annual report on the state of credit unions
WASHINGTON, DC (November 6, 2017) — National Association of Federally-Insured Credit Unions (NAFCU) today released its 2017 NAFCU Report on Credit Unions. The report shows, among other things, that credit unions are expanding their offerings for members despite increasing regulatory burdens. The report reiterates that preserving the credit union tax exemption remains NAFCU’s top legislative priority because of the economic benefits it brings. The association is actively engaged with lawmakers this week to ensure it is untouched in the tax reform bill being marked up by the House Ways and Means Committee.
“Our 2017 NAFCU Report on Credit Unions reveals that even in the face of regulatory challenges and financial pressures, credit unions continue to provide exceptional service to nearly 110 million members across the country and stimulate the national economy with more than $16 billion annually in benefits,” said NAFCU President and CEO Dan Berger.
The report on credit unions looks at five key areas: credit union trends, credit unions’ service to their members and use of Federal Reserve services, legislative issues facing credit unions, regulatory issues facing credit unions, and emerging challenges facing credit unions.
Some of the highlights in the 2017 report include the following:
Overall industry growth is strong, despite the fact that not-for-profit credit unions are small, highly regulated and typically operate with much smaller margins than their for-profit counterparts.
Investing in technology is a priority for credit unions, as evidenced by the growth in the number of institutions offering remote deposit capture, mobile payments and other electronic services.
The Federal Reserve remains a critical source of transaction services for the industry.
Modernized field of membership rules, including a strong federal charter and the ability to serve underserved areas, are crucial to the future welfare of the credit union industry.
Regulatory burden continues to be a drag on credit unions, while non-traditional financial service providers that are directly competing with credit unions are largely unencumbered by existing rules.
Continued outreach to millennials and young adults is key to credit union strategic growth.
About the Report:
The information gathered in the 2017 NAFCU Report on Credit Unions is based on the association’s Federal Reserve Meeting Survey, an annual assessment of NAFCU members covering topics discussed in the report. The report also draws on data collected for NAFCU’s Economic & CU Monitor, CU Industry Trends Report and the association’s updated 2017 study, “Economic Benefits of the Credit Union Tax Exemption to Consumers, Businesses and the U.S. Economy.”
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.