More Members Can Invest with Their CU Than Ever Before

The number of credit unions offering investment services has remained essentially flat for the past several years. But the credit union industry has been consolidating even faster. As a result, the share of credit unions offering investment services has increased substantially.

955 credit unions partner with the 11 largest 3rd party broker dealers, about the same number reported in 2007. Nonetheless, the share of credit unions selling investments has crept up from around 12% to above 16% over the same period, because consolidation of the credit union industry has shrunk the number of US credit unions from 7,811 in 2007 to 5,844 today.

Trends in Share of Credit Unions Offering Investment Services through TPMs

This is good news for credit union members, more of whom have access to investment advice through their credit union than ever before. Kehrer Bielan's consumer research has shown that member households would prefer to invest with their credit union rather than with competing brokerage, insurance or mutual fund firms, but many are unaware that their credit union offers investment services.

As the opportunity in investment services grows, how can credit unions position themselves to fully exploit it? Stay tuned for future Highlighters that will explore that question and others.

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