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Increase Falling Membership? Changing FOM is 1 Option, Says NAFCU Economist, But It’s Not Answer for All

Kurt Long

ARLINGTON, Va.–What can be done about the lack of growth at more than half of all federally insured credit unions? It’s a challenge for which there is no one clear-cut answer, notes NAFCU.

Newly released data from NCUA show that while overall membership in federally insured credit unions continued to grow during the year ending in the first quarter of 2021, 55% of federally insured credit unions had fewer members at the end of Q1 than a year earlier.

That data is being reported even as overall, federally insured credit unions continued to experience double-digit asset and share-and-deposit growth over the year ending in the first quarter of 2021.

‘Disparity’ is Apparent

“We do see the big disparity between large and small credit unions when it comes to growth especially,” said NAFCU’s chief economist, Curt Long. “That’s true along a number of dimensions. It’s a long-standing trend. If you look at the median, a credit union with $50 million in assets, they are probably not growing nearly as much as a larger CU. Growth is a topic NAFCU tries to focus on. We try to give credit unions all the tools they need to grow.”

FOM & Regs

In particular, said Long, NAFCU has sought to focus on regulations related to field of membership and for opportunities to expand FOM.

“A lot of small credit unions are bound by their field of membership,” said Long. “Opening up may give some credit unions opportunities to grow.”

And in response to a question, Long acknowledged that for some credit unions facing a lack of growth a merger may be the best option.

“We support whatever is in the best interests in the membership,” said Long.
 
CUToday

 

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