Credit union programs across the nation have been attracting more members, as evidenced by recent data that shows record earnings for 2012.
Citing data from SNL Financial, the Credit Union Times reports that credit unions reported total net income of $8.6 billion in 2012, an increase of 33.54 percent from 2011. The earnings are the highest ever recorded in one year, the Times reports. This is a sharp return from 2008 figures, when credit unions posted a total loss of 0.15 percent.
Membership enrollment and profits are expected to continue increasing for credit unions as they continue to offer valuable alternatives to big banking accounts. Unlike national banks, credit unions continue to provide free checking programs as well as low interest rates and more flexible lending terms. In addition, local institutions have been instrumental in extending small business products to companies that cannot qualify for financing from national banks due to stringent lending criteria.
Further, credit unions have remained competitive with large banks in their ability to offer sophisticated mobile banking programs and other innovative products. As mobile platforms are expected to be the future of the financial industry, credit unions are on pace to continue attracting more members in the future.