Number of Prime Borrowers Among CU Members Continues to Drop

By Jon Haller
Director of Market Research
Credit Union National Association

The percentage of credit union members that fall into the prime borrowing age groups of 25 to 44 has continued its gradual, but consistent decade-long decline. This according to CUNA Research's recently updated Member Statistics Benchmarking Database, based on a nationwide survey of credit union members and nonmembers. As a result, and as expected, an already challenging environment for lending is becoming that much tougher. That is, if increased competition hasn't been enough, there is an ever-shrinking pool of strong borrowers from which you and your competitors can attract loan business. People 25 to 44 now account for just 41% of the country's adult members - down from 42% in 2002 and 49% in 1994.

Other highlights from the member-nonmember comparisons include the continuation of several historical trends that indicate members, when compared to nonmembers, are more likely to be married, be employed full-time, have college educations and be home owners (see figure).

The above information can be used as benchmarks to which your own credit union's member demographics and/or member survey information can be compared. Meaningful differences in, say, your percentage of prime borrowers, member-home-ownership levels, etc. can point to unique challenges and/or opportunities for your credit union to attract more of your members' financial business.

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