While banks might command more headlines, the surging membership and member satisfaction rates of credit unions in 2023 reveal a powerful shift in how Americans prefer to bank.
Key Takeaways
- In 2023, U.S. credit unions served 136.5 million members, representing 42% of the U.S. population
- Credit union membership grew by 3.2% year-over-year in Q4 2023, adding 4.1 million new members
- The average credit union member age is 47 years old as of 2023, younger than the national average of 49
- Total credit union assets reached $2.31 trillion as of Q4 2023
- Credit union capital ratio averaged 11.2% in 2023, exceeding regulatory requirements
- Net income for credit unions totaled $16.4 billion in 2023, up 8% YoY
- First mortgage loans outstanding totaled $1.05 trillion, comprising 54% of all credit union loans in Q4 2023
- Credit card loans reached $122 billion, up 7.2% YoY in 2023
- Auto loan delinquency rate was 0.78% for credit unions in Q4 2023, below banks' 0.92%
- Total savings deposits reached $1.42 trillion, 61% of total shares in Q4 2023
- Share certificates grew 3.4% to $285 billion in 2023 amid high rates
- Money market accounts held $512 billion, 22% of deposits in 2023
- Number of credit union branches totaled 19,800 in 2023, down 1.2% YoY
- Digital transactions comprised 92% of total member transactions in 2023
- Average operating expenses per member were $312 in 2023 for credit unions
Credit unions grew membership and assets in 2023 while focusing on younger and diverse communities.
Assets and Capital
- Total credit union assets reached $2.31 trillion as of Q4 2023
- Credit union capital ratio averaged 11.2% in 2023, exceeding regulatory requirements
- Net income for credit unions totaled $16.4 billion in 2023, up 8% YoY
- Loans-to-assets ratio for credit unions was 82.4% in Q4 2023
- Credit unions held $1.92 trillion in total loans outstanding in 2023
- Share of assets in investments was 12.1% for credit unions in 2023
- Total reserves and undivided earnings reached $254 billion in 2023
- Large credit unions (> $1B assets) hold 85% of total industry assets in 2023
- Credit union ROA averaged 0.89% in 2023, higher than banks' 0.76%
- Delinquency reserves totaled $4.2 billion across credit unions in 2023
- Assets per member averaged $16,900 in U.S. credit unions as of 2023
- Credit unions' liquidity ratio stood at 14.5% in Q4 2023
- Non-interest income grew 12% to $28 billion in 2023 for credit unions
- Credit union net worth ratio was 10.8% on average for federally insured CUs in 2023
- Total assets grew 5.6% YoY to $2.31T in 2023, driven by deposits
- Credit union equity capital totaled $260 billion in Q4 2023
- Interest income generated $102 billion for credit unions in 2023
- Allowance for loan losses was 0.92% of loans in 2023
- Fixed assets like branches valued at $18.5 billion industry-wide in 2023
- Credit unions' leverage ratio averaged 11.5% in 2023
- Unrealized losses on securities totaled $12 billion in 2023
- Assets under management in CUSOs reached $50 billion in 2023
- Net margin improved to 1.1% for mid-sized CUs in 2023
- Goodwill and intangibles on balance sheets: $3.2 billion in 2023
- Total borrowings outstanding were $105 billion in Q4 2023
- Other assets category grew 8% to $45 billion in 2023
- Credit union yield on earning assets was 4.65% average in 2023
- Cost of funds averaged 2.8% for deposits in 2023
Assets and Capital Interpretation
While being awash in $2.31 trillion and boasting impressive capital, the steady, member-focused credit union model proves its resilience, prudently lending out most of its assets while still managing a more efficient financial engine than its larger banking cousins.
Deposits and Savings
- Total savings deposits reached $1.42 trillion, 61% of total shares in Q4 2023
- Share certificates grew 3.4% to $285 billion in 2023 amid high rates
- Money market accounts held $512 billion, 22% of deposits in 2023
- Regular share accounts averaged $5,200 balance per member in 2023
- IRA/Keogh accounts totaled $118 billion in credit unions in 2023
- Deposit growth was 6.2% YoY to $1.56 trillion in 2023
- 72% of members maintain savings accounts with average balances up 4% in 2023
- CDs and time deposits yielded average 4.1% APY in late 2023
- Non-interest bearing deposits were 8% of total shares in 2023
- Savings rates for credit unions averaged 0.45% vs. banks' 0.38% in 2023
- Jumbo CDs (> $100k) grew 15% to $45 billion in 2023
- Member share drafts (checking) totaled $380 billion in 2023
- 55% of deposits are in accounts under $10,000 in small CUs in 2023
- Credit unions paid $8.7 billion in dividends to members in 2023
- Savings deposits growth outpaced checking by 2x in 2023
- High-yield savings accounts attracted 18% more balances in 2023
- Brokered deposits used by 15% of CUs totaled $20 billion in 2023
- Average checking account balance $2,800 per member in 2023
- Christmas club and vacation club accounts: $1.2 billion in 2023
- Deposit insurance coverage protected $1.5 trillion in shares in 2023
- Online-only deposit growth 12% for digital CUs in 2023
- Senior savings products held $65 billion in 2023
- APY on 12-month CDs averaged 4.85% peak in 2023
- Transaction limits on savings accounts waived for 68% of CUs in 2023
- Core deposits to total liabilities 92% in 2023
- Youth accounts numbered 8.5 million in 2023
Deposits and Savings Interpretation
Amidst a high-rate frenzy where share certificates bulged like a bodybuilder on protein shakes, it's clear credit unions are mastering the art of keeping member deposits loyal—and financially buff—by offering juicier yields and Christmas clubs alongside their digital growth, all while ensuring a cool $8.7 billion in dividends flowed back to the people.
Loans and Credit
- First mortgage loans outstanding totaled $1.05 trillion, comprising 54% of all credit union loans in Q4 2023
- Credit card loans reached $122 billion, up 7.2% YoY in 2023
- Auto loan delinquency rate was 0.78% for credit unions in Q4 2023, below banks' 0.92%
- Total commercial loans grew 9.1% to $98 billion in 2023
- 45% of credit union loan portfolios are first mortgages in 2023
- Personal loan originations increased 6.5% to $45 billion in 2023
- Credit unions originated 1.2 million auto loans quarterly on average in 2023
- HELOC balances totaled $32 billion, up 4% YoY in 2023
- Loan growth rate was 4.8% for credit unions in 2023, outpacing banks' 3.2%
- Student loan portfolios shrank 2.1% to $8.5 billion in 2023 due to forgiveness
- Average auto loan yield was 5.12% for credit unions in 2023
- Business loan share of portfolio rose to 5.1% in large CUs in 2023
- Net charge-offs were 0.45% of loans in 2023 for credit unions
- 28% of credit union loans are unsecured in 2023
- Mortgage loan approvals averaged 85% for credit unions vs. 78% banks in 2023
- Commercial real estate loans hit $75 billion in 2023
- Refinance mortgage volume dropped 15% to $180 billion in 2023
- Average credit card balance per account was $4,200 in 2023
- New auto loan originations totaled $95 billion in 2023
- Payday alternative loan (PAL) volume reached 500,000 loans in 2023
- Loan-to-value ratio on mortgages averaged 72% in 2023
- Indirect lending partnerships generated 40% of auto loans in 2023
- Delinquency rate on credit cards was 1.85% in Q4 2023
- Member business loans approved at 82% rate in 2023
- Home equity loan growth stalled at 1.2% in 2023
- Agricultural loans totaled $12 billion in rural CUs in 2023
- Average personal loan term was 24 months in 2023
Loans and Credit Interpretation
While credit unions are increasingly becoming the bankers of Main Street—happily growing in mortgages, autos, and small businesses while keeping delinquency and heartburn low—they’re still figuring out what to do with that $4,200 credit card balance you keep swearing you'll pay off.
Membership and Demographics
- In 2023, U.S. credit unions served 136.5 million members, representing 42% of the U.S. population
- Credit union membership grew by 3.2% year-over-year in Q4 2023, adding 4.1 million new members
- The average credit union member age is 47 years old as of 2023, younger than the national average of 49
- 58% of credit union members are from households earning under $75,000 annually in 2023
- Federally insured credit unions had 4,550 charters active in 2023, down 1% from prior year
- Hispanic membership in credit unions increased by 5.1% to 12.3 million in 2023
- 32% of credit union members are Gen Z or Millennials as of 2023 surveys
- Rural credit unions serve 15 million members, comprising 11% of total membership in 2023
- Women represent 51.2% of primary credit union account holders in 2023
- Credit unions added 1.2 million senior members (65+) from 2020-2023
- 67% of credit union members report higher satisfaction than bank customers in 2023 J.D. Power study
- Membership penetration in the Southeast U.S. reached 48% of population in 2023
- Credit unions with under 10,000 members make up 60% of charters but only 5% of total members in 2023
- African American membership grew 4.8% to 8.7 million in 2023
- 22% of members use digital banking exclusively in 2023, up from 15% in 2021
- 41% of Americans are eligible for credit union membership in 2023
- Asian American membership surged 6.3% to 3.2 million in 2023
- Multi-generational households represent 29% of credit union members in 2023
- Membership in community charters grew 4.5% YoY in 2023
- 19% of members are military-affiliated in select credit unions in 2023
- Urban credit unions serve 65% of total members despite fewer charters
- Joint account holders add 25 million to effective membership in 2023
- Credit union penetration among low-income households is 35% in 2023
- Boomer generation holds 38% of membership share in 2023
- New member acquisition cost averaged $45 per member in 2023
Membership and Demographics Interpretation
Nearly half of America now trusts their local financial Davids more than the Wall Street Goliaths, as credit unions are shrewdly winning the hearts—and wallets—of younger, more diverse, and often overlooked communities while somehow managing to feel both refreshingly modern and reassuringly old-school.
Operational and Industry Trends
- Number of credit union branches totaled 19,800 in 2023, down 1.2% YoY
- Digital transactions comprised 92% of total member transactions in 2023
- Average operating expenses per member were $312 in 2023 for credit unions
- 85% of credit unions offer mobile banking apps in 2023, up from 72% in 2020
- Employee turnover rate in credit unions was 18.4% in 2023
- Credit unions processed 4.2 billion ACH transactions in 2023
- Efficiency ratio averaged 68% for credit unions in 2023
- 1,200 credit unions merged in 2023, reducing total charters by 120 net
- Cybersecurity incidents reported by 12% of credit unions in 2023 surveys
- Average staff size per credit union was 45 FTEs in 2023
- Contactless payment adoption reached 76% of CUs in 2023
- Vendor services used by 92% of credit unions for core processing in 2023
- ATM network transactions hit 1.8 billion via CO-OP in 2023
- Regulatory compliance costs averaged $1.2 million per large CU in 2023
- 65% of CUs implemented AI chatbots by end of 2023
- Credit unions hold 11.5% market share of U.S. deposits in 2023
- Credit unions' share of auto loans was 28% nationally in 2023
- Compared to banks, credit unions have 2.1x higher member loyalty scores in 2023
- Industry ROE averaged 9.2% for credit unions vs. 8.7% banks in 2023
- Branch visits declined 22% YoY to 450 million in 2023
- Call center volume averaged 1.5 calls per member annually in 2023
- 78% of CUs use shared branching networks in 2023
- Fintech partnerships adopted by 35% of credit unions in 2023
- Average loan processing time 2.1 days digitally in 2023
- NCUA exam cycle completion rate 98% within 12 months in 2023
- Debit card fraud losses $450 million industry-wide in 2023
- Employee training hours per FTE: 28 annually in 2023
- Mobile app ratings averaged 4.6/5 stars in 2023 app stores
- CUSO revenues totaled $12 billion in services to CUs in 2023
Operational and Industry Trends Interpretation
The credit union landscape in 2023 was one of loyal members glued to their glowing screens while the physical branches quietly faded and merged away, an expensive digital transformation kept humming by a revolving door of staff, all while proving that sometimes, nice guys finish with better returns.
Sources & References
- Reference 1NCUAncua.govVisit source
- Reference 2CALLAHANcallahan.comVisit source
- Reference 3FILENEfilene.orgVisit source
- Reference 4AMERICASCREDITUNIONSamericascreditunions.orgVisit source
- Reference 5DELINQUENCYMANAGEMENTdelinquencymanagement.comVisit source
- Reference 6JDPOWERjdpower.comVisit source
- Reference 7SPGLOBALspglobal.comVisit source
- Reference 8MBAmba.orgVisit source
- Reference 9BANKRATEbankrate.comVisit source
- Reference 10CO-OPFSco-opfs.orgVisit source