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
1Total credit union assets reached $2.31 trillion as of Q4 2023
Verified2Credit union capital ratio averaged 11.2% in 2023, exceeding regulatory requirements
Verified3Net income for credit unions totaled $16.4 billion in 2023, up 8% YoY
Verified4Loans-to-assets ratio for credit unions was 82.4% in Q4 2023
Directional5Credit unions held $1.92 trillion in total loans outstanding in 2023
Single source6Share of assets in investments was 12.1% for credit unions in 2023
Verified7Total reserves and undivided earnings reached $254 billion in 2023
Verified8Large credit unions (> $1B assets) hold 85% of total industry assets in 2023
Verified9Credit union ROA averaged 0.89% in 2023, higher than banks' 0.76%
Directional10Delinquency reserves totaled $4.2 billion across credit unions in 2023
Single source11Assets per member averaged $16,900 in U.S. credit unions as of 2023
Verified12Credit unions' liquidity ratio stood at 14.5% in Q4 2023
Verified13Non-interest income grew 12% to $28 billion in 2023 for credit unions
Verified14Credit union net worth ratio was 10.8% on average for federally insured CUs in 2023
Directional15Total assets grew 5.6% YoY to $2.31T in 2023, driven by deposits
Single source16Credit union equity capital totaled $260 billion in Q4 2023
Verified17Interest income generated $102 billion for credit unions in 2023
Verified18Allowance for loan losses was 0.92% of loans in 2023
Verified19Fixed assets like branches valued at $18.5 billion industry-wide in 2023
Directional20Credit unions' leverage ratio averaged 11.5% in 2023
Single source21Unrealized losses on securities totaled $12 billion in 2023
Verified22Assets under management in CUSOs reached $50 billion in 2023
Verified23Net margin improved to 1.1% for mid-sized CUs in 2023
Verified24Goodwill and intangibles on balance sheets: $3.2 billion in 2023
Directional25Total borrowings outstanding were $105 billion in Q4 2023
Single source26Other assets category grew 8% to $45 billion in 2023
Verified27Credit union yield on earning assets was 4.65% average in 2023
Verified28Cost of funds averaged 2.8% for deposits in 2023
VerifiedAssets 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
1Total savings deposits reached $1.42 trillion, 61% of total shares in Q4 2023
Verified2Share certificates grew 3.4% to $285 billion in 2023 amid high rates
Verified3Money market accounts held $512 billion, 22% of deposits in 2023
Verified4Regular share accounts averaged $5,200 balance per member in 2023
Directional5IRA/Keogh accounts totaled $118 billion in credit unions in 2023
Single source6Deposit growth was 6.2% YoY to $1.56 trillion in 2023
Verified772% of members maintain savings accounts with average balances up 4% in 2023
Verified8CDs and time deposits yielded average 4.1% APY in late 2023
Verified9Non-interest bearing deposits were 8% of total shares in 2023
Directional10Savings rates for credit unions averaged 0.45% vs. banks' 0.38% in 2023
Single source11Jumbo CDs (> $100k) grew 15% to $45 billion in 2023
Verified12Member share drafts (checking) totaled $380 billion in 2023
Verified1355% of deposits are in accounts under $10,000 in small CUs in 2023
Verified14Credit unions paid $8.7 billion in dividends to members in 2023
Directional15Savings deposits growth outpaced checking by 2x in 2023
Single source16High-yield savings accounts attracted 18% more balances in 2023
Verified17Brokered deposits used by 15% of CUs totaled $20 billion in 2023
Verified18Average checking account balance $2,800 per member in 2023
Verified19Christmas club and vacation club accounts: $1.2 billion in 2023
Directional20Deposit insurance coverage protected $1.5 trillion in shares in 2023
Single source21Online-only deposit growth 12% for digital CUs in 2023
Verified22Senior savings products held $65 billion in 2023
Verified23APY on 12-month CDs averaged 4.85% peak in 2023
Verified24Transaction limits on savings accounts waived for 68% of CUs in 2023
Directional25Core deposits to total liabilities 92% in 2023
Single source26Youth accounts numbered 8.5 million in 2023
VerifiedDeposits 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
1First mortgage loans outstanding totaled $1.05 trillion, comprising 54% of all credit union loans in Q4 2023
Verified2Credit card loans reached $122 billion, up 7.2% YoY in 2023
Verified3Auto loan delinquency rate was 0.78% for credit unions in Q4 2023, below banks' 0.92%
Verified4Total commercial loans grew 9.1% to $98 billion in 2023
Directional545% of credit union loan portfolios are first mortgages in 2023
Single source6Personal loan originations increased 6.5% to $45 billion in 2023
Verified7Credit unions originated 1.2 million auto loans quarterly on average in 2023
Verified8HELOC balances totaled $32 billion, up 4% YoY in 2023
Verified9Loan growth rate was 4.8% for credit unions in 2023, outpacing banks' 3.2%
Directional10Student loan portfolios shrank 2.1% to $8.5 billion in 2023 due to forgiveness
Single source11Average auto loan yield was 5.12% for credit unions in 2023
Verified12Business loan share of portfolio rose to 5.1% in large CUs in 2023
Verified13Net charge-offs were 0.45% of loans in 2023 for credit unions
Verified1428% of credit union loans are unsecured in 2023
Directional15Mortgage loan approvals averaged 85% for credit unions vs. 78% banks in 2023
Single source16Commercial real estate loans hit $75 billion in 2023
Verified17Refinance mortgage volume dropped 15% to $180 billion in 2023
Verified18Average credit card balance per account was $4,200 in 2023
Verified19New auto loan originations totaled $95 billion in 2023
Directional20Payday alternative loan (PAL) volume reached 500,000 loans in 2023
Single source21Loan-to-value ratio on mortgages averaged 72% in 2023
Verified22Indirect lending partnerships generated 40% of auto loans in 2023
Verified23Delinquency rate on credit cards was 1.85% in Q4 2023
Verified24Member business loans approved at 82% rate in 2023
Directional25Home equity loan growth stalled at 1.2% in 2023
Single source26Agricultural loans totaled $12 billion in rural CUs in 2023
Verified27Average personal loan term was 24 months in 2023
VerifiedLoans 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
1In 2023, U.S. credit unions served 136.5 million members, representing 42% of the U.S. population
Verified2Credit union membership grew by 3.2% year-over-year in Q4 2023, adding 4.1 million new members
Verified3The average credit union member age is 47 years old as of 2023, younger than the national average of 49
Verified458% of credit union members are from households earning under $75,000 annually in 2023
Directional5Federally insured credit unions had 4,550 charters active in 2023, down 1% from prior year
Single source6Hispanic membership in credit unions increased by 5.1% to 12.3 million in 2023
Verified732% of credit union members are Gen Z or Millennials as of 2023 surveys
Verified8Rural credit unions serve 15 million members, comprising 11% of total membership in 2023
Verified9Women represent 51.2% of primary credit union account holders in 2023
Directional10Credit unions added 1.2 million senior members (65+) from 2020-2023
Single source1167% of credit union members report higher satisfaction than bank customers in 2023 J.D. Power study
Verified12Membership penetration in the Southeast U.S. reached 48% of population in 2023
Verified13Credit unions with under 10,000 members make up 60% of charters but only 5% of total members in 2023
Verified14African American membership grew 4.8% to 8.7 million in 2023
Directional1522% of members use digital banking exclusively in 2023, up from 15% in 2021
Single source1641% of Americans are eligible for credit union membership in 2023
Verified17Asian American membership surged 6.3% to 3.2 million in 2023
Verified18Multi-generational households represent 29% of credit union members in 2023
Verified19Membership in community charters grew 4.5% YoY in 2023
Directional2019% of members are military-affiliated in select credit unions in 2023
Single source21Urban credit unions serve 65% of total members despite fewer charters
Verified22Joint account holders add 25 million to effective membership in 2023
Verified23Credit union penetration among low-income households is 35% in 2023
Verified24Boomer generation holds 38% of membership share in 2023
Directional25New member acquisition cost averaged $45 per member in 2023
Single sourceMembership 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
1Number of credit union branches totaled 19,800 in 2023, down 1.2% YoY
Verified2Digital transactions comprised 92% of total member transactions in 2023
Verified3Average operating expenses per member were $312 in 2023 for credit unions
Verified485% of credit unions offer mobile banking apps in 2023, up from 72% in 2020
Directional5Employee turnover rate in credit unions was 18.4% in 2023
Single source6Credit unions processed 4.2 billion ACH transactions in 2023
Verified7Efficiency ratio averaged 68% for credit unions in 2023
Verified81,200 credit unions merged in 2023, reducing total charters by 120 net
Verified9Cybersecurity incidents reported by 12% of credit unions in 2023 surveys
Directional10Average staff size per credit union was 45 FTEs in 2023
Single source11Contactless payment adoption reached 76% of CUs in 2023
Verified12Vendor services used by 92% of credit unions for core processing in 2023
Verified13ATM network transactions hit 1.8 billion via CO-OP in 2023
Verified14Regulatory compliance costs averaged $1.2 million per large CU in 2023
Directional1565% of CUs implemented AI chatbots by end of 2023
Single source16Credit unions hold 11.5% market share of U.S. deposits in 2023
Verified17Credit unions' share of auto loans was 28% nationally in 2023
Verified18Compared to banks, credit unions have 2.1x higher member loyalty scores in 2023
Verified19Industry ROE averaged 9.2% for credit unions vs. 8.7% banks in 2023
Directional20Branch visits declined 22% YoY to 450 million in 2023
Single source21Call center volume averaged 1.5 calls per member annually in 2023
Verified2278% of CUs use shared branching networks in 2023
Verified23Fintech partnerships adopted by 35% of credit unions in 2023
Verified24Average loan processing time 2.1 days digitally in 2023
Directional25NCUA exam cycle completion rate 98% within 12 months in 2023
Single source26Debit card fraud losses $450 million industry-wide in 2023
Verified27Employee training hours per FTE: 28 annually in 2023
Verified28Mobile app ratings averaged 4.6/5 stars in 2023 app stores
Verified29CUSO revenues totaled $12 billion in services to CUs in 2023
DirectionalOperational 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