How unusual is credit union’s 20.3% share growth in 2020? Or the slight uptick to 23.2% for the 12 months ending March 31, 2021?
For the decade ending in 2020, the credit union system’s compound annual share growth (CAGR) was 6.7%.
Share growth drives the balance sheet. The two sources for shares are expanding existing member relationships and adding new members. The rate of new member gain in this same decade was 3.4% (CAGR). This suggests a balance of internal and external growth sources.
In 2020 however, new members grew at 3.3% or just 16% of the total gain in shares that year.
The 2020 results remind one of the marketing adage about finding more business: there is always more business to be gained from existing customers than from acquiring new ones.
In plain speaking, if existing members aren’t growing their relationship, why will new ones find your offerings attractive?
Data Source: Callahan’s 2020 Credit Union Directory (pgs. 1-2)