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CU Snapshot

 Apr '17Mar '17
# of CUs 5,926 5,953
Members
(millions)
111.2110.7
Total Assets
($ billions)
$1,381.2$1,374.7
Total Savings
($ billions)
$1,161.4$1,163.6
Net Cap.
Assets
10.4%10.4%
Loans to Savings79.3%78.2%
Loan Delinq.0.8%0.7%

         Credit Union Indicators

Millennials Face Financial Challenge

The future hinges on effectively serving this critical market segment.

Attracting and retaining millennials—those ages 18 to 34—is critical for credit unions. Young members, in part because they've historically been heavy borrowers, form the lifeblood of a healthy, vibrant cooperative finance sector.

Young people face some important challenges in what has been a comparatively weak economic recovery. That makes engagement more difficult—but also more important than ever.

Millennials are having a particularly tough time in the job market. Workers ages 25 to 34 have a slightly elevated 5.8% unemployment rate, while those ages 20 to 24 reflect a remarkably high 9.6% rate.

Another troubling statistic: Recent college graduates have consistently experienced unemployment rates double the average of their counterparts with college degrees who have been in the labor force longer, reports the Bureau of Labor Statistics.

As member-owned financial cooperatives, credit unions clearly help those challenged by the weak economic recovery. This includes millennials and recent college graduates.

As a group, we've had a long history of focusing on consumer education and financial consulting. We provide personalized advice and guidance that helps people reach their financial goals and make better personal financial decisions. And that's what young people need.

Millennials increasingly recognize the credit union difference and value the unique cooperative approach to locally sourced financial services. CUNA's 2015-2016 National Member & Nonmember Survey reveals that 28% of adults ages 18 to 24 belong to a credit union. This is up from 22% two years ago.

While young people face great challenges in today's economy, credit unions are helping many rise to those challenges.

For many, success in the future hinges on continuing to effectively serve this critical market segment.

MIKE SCHENK is vice president of CUNA's economics and statistics department. Contact him at 608-231-4228.

(Via news.cuna.org)