Trends And Takeaways From 2Q20 Trendwatch

Consumers are turning to credit unions at an unprecedented pace in 2020, with both deposit growth and lending activity at record levels through June.

These trends and more were highlighted in last week’s Trendwatch, a quarterly webinar from Callahan & Associates that highlights industry performance, shares credit union success stories, and identifies areas of opportunity.

Callahan’s early data program allows us to share industry trends three weeks before the data is officially released from the NCUA.

Using 99% of the industry’s assets reporting, Callahan analysts identified three standout trends from second quarter credit union performance data:

• Members increased their savings in credit unions by more than $176 billion over the first six months of 2020 – nearly three times the total deposit increase reported in the first half of 2019.
• Credit unions continue to lend to members during the pandemic, funding $314 billion in loans through June – a 26% increase versus the first half of 2019 that was driven by a 94% jump in first mortgage originations.
• Over 4.1 million consumers have joined a credit union since June 2019. Thanks to deepening member engagement, the average member relationship increased by $1,392 year over year to reach $20,676.

“Members are turning to their credit union during these unusual times, as evidenced by the double-digit savings growth,” said Jay Johnson, Callahan chief collaboration officer. “This strengthens the relationships with their credit unions and underscores the trust they have in the cooperative model.

“Of course, the growth wouldn’t happen without credit union employees, who are the financial first responders for members. Credit union employees were able to adapt to a new work environment on a short timeline while continuing to serve members and help them navigate a period of tremendous uncertainty.”

This quarter’s Trendwatch webinar featured a presentation from Travis Flora, culture & values officer at Commonwealth Credit Union. The Kentucky cooperative wanted to create a company culture that empowered and united its employees so that it could maximize on everyone’s strengths and continue to flourish. Read more in How To Foster A New Culture Across The Credit Union on CreditUnions.com.

Every quarter, Callahan relies on the employee-owned company’s proprietary Peer-to-Peer software to analyze credit union performance data weeks before the official release from the industry regulator. Callahan clients can access this data in their client portal.

Not a client? Click here to learn how to get access and see what Peer can do for you.