The Rise of Credit Unions

The rise o f CREDIT UNIONS Banks have been around for a long time. Recently, traditional banks have taken on a bit of ridicule due to high overdraft and ATM fees, among other issues. Meanwhile, another form of financial institu- tion is on its way up the totem pole and has seen some promising returns on their investments- credit unions. What's the Difference? (12) Banks Banks were created and still are intended to be for-profit corporations which are owned by private investors governed by a board of directors, who are chosen by their stockholders. Credit Unions Owned by their members, credit unions are non-profit financial institutions who have their board members elected by their customers. They treat deposits as though they were investments and are expressed as shares. All of a credit unions profits are distributed as dividends to its members. Saving Institutions These businesses specialize in real estate financing and they could be a mutual or corporation. They're easily distinguishable by their designation of either to indicate whether or not they're SSB or FSB at a state or federal level. Savings institutions elect a board of directors similar to banks. Constantly Growing 7,351 credit unions in the United States. As of 2011, there were Steady Growth in Membership (in millions) 12,3, 4, 5, 6) 89.9 91.1 91.7 93.9 100 88.5 80 2007 2008 2009 2010 2011 The Growth Rates of Assets Versus Loans 7 ASSETS 11.5% LOANS 7.2% 6.7% 3.3% 1.3% -1.2% 2008 2010 Mar 2012 2008 2010 Mar 2012 1 trillion dollar. If you combined all the credit union assets from around North America it would equal Reason for Sudden Growth 18, 9. 10) Between the Occupy Movement and Bank Transfer Day, 5.6 million people switched financial institutions in the 90 days preceding January 2012. 54% of credit unions have said they've noticed an increase in market share growth. Over 80% of all credit unions in the U.S. experienced a boost following Bank of America's announcement to charge a debit card fee. There was a 2.5% membership growth for credit unions in 2012-the highest it has been in the last 5 years. While banks, like Bank of America, own more than credit unions tend to use more widely accessible company ATMS. 18,000 ATMS, ALLPOINT CO-OP NETWORK MONEYPASS 43,000 28,000 Tens of Thousands surcharge-free ATMSS. ATMS in the U.S. and Canada. of ATMS around the U.S. CONCLUSION Credit unions have gained a good deal of traction in previous months, and as they grow, traditional banks III may find their customers switching. Though the number of credit unions has declined, their ability to capture countless new customers has not diminished. Ttotalbankruptcy- SOURCES [1] http://www.woccu.org/publications/statreport [2] http://www.woccu.org/functions/view_document.php?id-2011_Statistical_Report [3] http://www.woccu.org/functions/view_document.php?id-2010 Statistical_Report [4] http://www.waccu.org/functions/view_document.php?id-2009_Statistical_Report (5] http://www.woccu.org/functions/view_document.php?id-2008_Statistical_Report [6] http://www.woccu.org/functions/view_document.php?id-2007_Statistical_Report [7] http://www.cuna.org/research/download/uscu_profile_1q12.pdf [8] https://www.javelinstrategy.com/blog/2012/01/26/%E2%80%98bank-transfer-day%E2%80%99-what-really-just-hap pened/ [9] http://abcnews.go.com/Business/WorldNews/credit-unions-54- percent-increase-membership-related-bank/story?id-14897356#.T_YYis3c6IM [10] http://www.huffingtonpost.com/2011/11/03/new-credit-union-account-openings_n_1074550.html (11] http://www.cuna.org/research/download/uscu_profile_1q12.pdf (12] http://www.wdfi.org/wca/consumer_credit/credit_guides/DifferencesBanksCreditUnionsSavingslnstitutions.htm