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CU Snapshot

 Mar '18Feb '18
# of CUs5,5965,757
Total Assets
($ billions)
Total Savings
($ billions)
Net Cap.
Loans to Savings81.5%82.6%
Loan Delinq.0.8%0.9%

         Credit Union Indicators

Loan Growth Requires Advanced Targeting

Three member segments to watch.

Growing your loan portfolio—a challenge essential to profitability—requires detailed knowledge of target members, according to Harvey Foster, Fiserv's product management strategist for lending solutions.

Millennials, the 75 million Americans born between 1979 and 1999, represent one target demographic. By 2022, millennials will make 40% of new vehicle purchases, according to Deloitte projections.

But don't abandon other major demographic groups, especially for home purchase and home equity credit opportunities.

Based on its research, Raddon Financial Group recommends targeting these three member segments:

1. Credit-driven (ages 18 to 34 with more than $50,000 in annual income). This is a net borrowing market. This segment's income level qualifies members for a wide variety of credit products, making it a key segment for lending.

2. Middle market (ages 35 to 54, earning $50,000 to $125,000 per year). At this stage, members have built household balances high enough to offer the industry good profit potential from both savings and borrowing.

3. Upscale (age 35 and over, earning more than $125,000). The upscale segment provides the highest level of profit potential to credit unions. These members exhibit the greatest product use.

Credit unions must provide an enhanced member experience to successfully connect with these groups.

Members of each group will have unique preferences and will need to have access to an array of engagement options: online, mobile, and in-branch.

(Via Credit Union Magazine)