Credit Union Memberships Surge in Michigan
Lansing, MI (Sept. 12, 2016) Michigan credit union memberships are inches away from the 5 million-member milestone. This means roughly half of the state’s population is choosing the not-for-profit financial cooperatives to meet their financial needs spanning from home and auto loans to high-interest checking accounts.
2016 second quarter National Credit Union Administration (NCUA) data shows Michigan credit union memberships reached 4.9 million at the end of the quarter. The 3.1 percent increase over the 12-month period is the largest membership percentage gain in several years.
Michigan credit unions showcased their commitment to supporting members’ financial dreams through double-digit 12-month loan gains in several categories as highlighted below.
- Total Loans: 11.1 percent
- Credit Cards: 5.7 percent
- Member Business Loans: 16.9 percent
- Other Unsecured Loans: 8.8 percent
- New Car: 14.0 percent
- Used Car: 14.8 percent
- First Mortgage: 7.7 percent
The confidence consumers display in credit unions is contrasted with recent news of the Consumer Financial Protection Bureau (CFPB) fining Wells Fargo an unprecedented $100 million for the illegal opening of unauthorized credit cards in customer’s names in an effort to meet sales targets, according to the CFPB.
“There’s a reason credit unions are consistently named one of the most trusted industries when it comes to consumer confidence,” MCUL CEO Dave Adams said. “Whether it’s their low rates and fees or steadfast commitment to their communities, people know credit unions put members’ best interests—and not profits—above all else.”
Putting members first means supporting the small businesses that help drive Michigan’s low unemployment rate and increased wages. The support is showcased by a 16.9 percent increase in business lending compared to last year.
Due to their history of lending responsibly to businesses, the National Credit Union Administration, (NCUA) recently relaxed requirements to allow credit unions greater business lending autonomy. This move has been met with a lawsuit from the Independent Community Bankers Association of America.
Here’s a look at average regional 2016 Q2 business loan growth based on credit unions headquartered in each city:
- Alpena: 41.7 percent
- Detroit: 72.8 percent
- Grand Rapids: 15.4 percent
- Marquette: 23.9 percent
- Traverse City: 23.5 percent
“During the Great Recession, when banks stopped lending to small businesses, credit unions continued to infuse money into the economy through stepping up to support small business dreams,” MCUL CEO Dave Adams said. “That support continues today, and credit unions are proud to be playing a role in Michigan’s comeback.”
Check out the 2016 2Q economic analysis below from CUNA's Sr. Economist Mike Schenk.
About the Michigan Credit Union League & Affiliates
Organized in 1934, the Michigan Credit Union League is a trade association representing Michigan’s Credit Unions. Based in Lansing, the MCUL works to build awareness of these locally owned, cooperative institutions and their mission to support members, communities and local businesses.Go to main navigation