Assets: $17 billion
Headquarters: Sandy, Utah

Overview of Credit Unions

Credit unions are non-profit financial entities owned by their members.

Unlike banks, which make profits for shareholders, credit unions provide surplus money to members in the form of cheaper fees, greater savings rates, and loans.

Membership is often determined by shared criteria such as location, employer, or membership in a group or association.

Credit unions follow a cooperative approach. This means that every member, regardless of deposit size or loan amount, has an equal voice in the credit union’s governance.

This framework empowers each member while reinforcing credit unions’ community-centered orientation.

Factors Determining the Size of Credit Unions

  • Membership Numbers
  • Assets Under Management
  • Market Share

1. Membership Numbers

The size of a credit union is sometimes measured by its membership numbers. A high membership demonstrates trust and popularity in the community it serves.

However, a larger membership does not automatically mean greater service. A credit union’s commitment to member happiness and product quality frequently distinguishes it from competitors.

More importantly, a large number of members indicates a diverse pool of resources for the credit union.

Members’ pooled savings serve as a pool of capital for lending to other members, effectively circulating money within the community and encouraging mutual growth and prosperity.

2. Assets Under Management

Another indicator of a credit union’s size is its assets under management (AUM). This encompasses loans, investments, and cash reserves.

A large AUM often indicates that the credit union has significant economic clout and can offer its members a wide range of services.

However, a large AUM does not always indicate a credit union’s performance. The credit union’s financial health and stability are also heavily influenced by its managerial effectiveness and capacity to create returns on its assets.

Prudent asset management supports the credit union’s longevity and effectiveness in serving its members.

3. Market Share

Another metric for determining a credit union’s size is its market share, or the portion of the market its services in comparison to other financial institutions.

A big market share shows a substantial presence and influence in its operational area. It also implies that the credit union has efficiently satisfied its members’ demands and is a top choice for financial services.

A big market share, on the other hand, can be difficult to manage. It may face regulatory scrutiny and require more significant infrastructure to run its operations.

Furthermore, a big market share may make a credit union a target for cyberattacks, needing strong cybersecurity procedures.

Key Performance Indicators of Top Credit Unions

  • Membership Growth and Retention
  • Asset Management Strategies
  • Range of Financial Products and Services
  • Innovation and Technological Integration

1. Membership Growth and Retention

For credit unions, consistent membership growth and retention are critical measures of success. They demonstrate that these organizations are adding value, addressing their members’ demands, and gaining their trust. However, growth involves more than just a numbers game.

A credit union’s capacity to retain members through high-quality service, reasonable rates, and innovative products is also critical.

2. Asset Management Strategies

A credit union’s asset management practices have a significant impact on its financial stability and capacity to serve its members.

These techniques concern how a credit union uses its assets — its members’ funds — to create income. This may include making loans to members, investing in securities, and keeping financial reserves.

3. Range of Financial Products and Services

To address the varying demands of their members, credit unions must offer a wide range of financial products and services. These could include savings and checking accounts, credit cards, auto loans, mortgages, investment services, and insurance goods.

Credit unions also offer financial education resources to help members improve their financial literacy.

4. Innovation and Technological Integration