The State of Credit Unions - Experian

[Pages:8]Report

The State of Credit Unions

2017

In the financial services universe, there is no shortage of players battling for consumer attention and share of wallet.

So how do credit unions stack up in a pack filled with heavy-hitting banks and aggressive online lenders?

Review our latest findings, which reveal insights and stats on credit union members as well as how credit unions are faring on various loan products in comparison with the competition.

Credit Union Member Snapshot

From Traditionalist to Gen Z

Average VantageScore?

Average number of credit cards

Average credit card balance

Average revolving utilization

Average total debt

Average number of retail cards

Silent

Age 70+

752 3.38 $5,493 18% $19,848 2.58

Boomer

Age 50?70

725 3.71 $8,280 30% $32,774 2.86

Gen X

35?49

683 3.37 $8,650 39% $37,351 2.72

Gen Y

Age 21?34

659 2.64 $4,925 38% $28,454 2.20

Gen Z

Age 18?20

639 1.50 $1,407 40% $9,954 1.59

While 25% of U.S. consumers have one or more credit union tradelines on their credit file, there is a huge opportunity to build relationships with millennials and Gen Z. Currently, only 20% of those with a credit union trade on file are millennials and only 1% are Gen Z.

Concentration of Credit Union Consumers Across the Country

Highest Concentration

Utah Alaska Idaho Washington Hawaii

55.8% 51.4% 43.1% 41.0% 38.2%

Lowest Concentration

New Jersey West Virginia Arkansas Mississippi Kentucky

10.8% 14.1% 15.0% 15.4% 17.3%

Credit Union Member vs. Non-Credit Union Member

Consumers with 1+ CU trades

Consumers with 0 CU trades

701 3.35 $7,388 0.35 $31,626

Average VantageScore?

Average number of credit cards

Average credit card balance

Average number of trades currently past due

Average total debt

665 2.90 $5,613 0.40 $20,820

Overall, consumers with credit unions have:

? Higher risk scores. ? Higher credit card

balances and utilization. ? Higher total debt (excluding mortgage). ? Lower delinquency levels.

Credit Unions vs. Competitors

2% While credit unions have seen some growth in this space (up

in 2 years)

-- and have expressed interest in growing their personal loan business -- the online

51% lenders and finance companies own this universe with

share.

Personal Loans

Personal Loan Originations Q1 2015

Retail 8% 24% Credit Union

Other 2%

Personal Loan Originations

Q1 2017

Retail

Credit Union

4% 26%

Other 2%

Bank Finance 44% 21%

Finance 51%

16% Bank

Credit Unions vs. Competitors

Credit Card

Banks own this space, but credit unions have seen growth. Credit unions

18% experienced an

increase in card originations from Q1 2015 to Q1 2017,

and total credit limits on newly originated cards from that same period approached

$100B in Q1 2017.

Credit Card Originations -- Q1 2015 Credit Card Originations -- Q1 2015

Bank -- 97% Bank -- 97%

Credit Union -- 3% Credit Union -- 3%

Credit Card Originations -- Q1 2017 Credit Card Originations -- Q1 2017

Bank -- 96% Bank -- 96%

Credit Union -- 4% Credit Union -- 4%

Credit Unions vs. Competitors

7% Credit unions have seen mortgage market share rise

from Q1 2015 to

Q1 2017. Banks have seen a decline in that same period as online lenders start to

take away share, offering a more digital experience.

Mortgage

Mortgage Originations -- Q1 2015

53%

37%

Other

Bank

6%

Credit Union

3% Finance

Mortgage Originations -- Q1 2017

50%

33%

Other

Bank

13%

Credit Union

5% Finance

Credit Unions vs. Competitors Auto

Credit unions have taken an edge in the auto space. Their auto originations have

1.54M 1.93M increased from

accounts in Q1 2015 to

in Q1 2017 -- a

25% increase.

Auto Originations Q1 2015

Finance 21% 23% Credit Union

Auto Originations Q1 2017

Finance 21% 28% Credit Union

Other 1%

Other 1%

Captive 26%

Bank 29%

Captive 25%

Bank 25%

To learn more about the latest in credit union news and solutions, visit

creditunions.

Experian 475 Anton Blvd. Costa Mesa, CA 92626 T: 1 888 414 1120

? 2017 Experian Information Solutions, Inc. ? All rights reserved

Experian and the Experian mars used herein are trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

VantageScore? is a registered trademark of VantageScore Solutions, LLC.

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