Credit Union Growth
Consumer-friendly approach drives credit union member growth in the Keystone State
Not-for-profit credit unions are becoming more popular among consumers looking for the best deals in financial services. Over three million consumers in the Keystone State are turning to member-owned, democratically controlled credit unions as alternatives to for-profit financial institutions, which often use high fees and high minimum balance requirements to maximize profits.
Over 800,000 people have joined financial cooperatives in Pennsylvania from year-end 1990 to present, pushing total credit union membership to over 3.3 million. Membership has more than tripled since 1970 when total membership was 983,000.
"People are learning that as not-for-profit cooperatives, credit unions offer consumers better rates for savings and loans. Credit unions have fewer and lower fees, and their credit card rates are often four points or more below some bank cards. Credit union members also know they'll be treated like part of a family, not like an account number or just as a profit center," stated James McCormack, President/CEO of the Pennsylvania Credit Union Association.
"This consumer-friendly approach — being member-driven, not profit-driven — helps people to get ahead financially by letting them keep more of their money."
Pennsylvania has the highest number of credit unions in the country with 627. As of June 2006, Pennsylvania credit unions had over $23.7 billion in assets and $20.6 billion in shares/savings accounts, and 3.3 million members.
While a small percentage of credit unions have grown to offer a variety of financial services, including mortgage and home equity loans, ATM services, credit cards, IRAs, education loans and other services, the majority of Keystone State credit unions remain small operations in terms of a financial services provider.
Despite credit union growth, banks continue to tower over the financial services field. At year end 2005, banking institutions held over fifteen times more assets than credit unions ($10.9 trillion vs. 701 billion) Each of the nation's largest three banking entites are larger than the entire credit union movement.
In recent years, bank assets grew as much as credit unions have totaled in 86 years. Bank profits are also climbing at a rapid rate, paced by record profits from fee income.
To locate a credit union to join, click here.
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