The credit union tax status is a responsibility for credit unions to put people over profits, America’s Credit Unions President/CEO Jim Nussle wrote in American Banker. Nussle highlighted that—despite bank falsehoods—the data shows the reality behind the credit union difference.
“Credit union members saw more than $21.5 billion in economic benefits from September 2022 to September 2023, and nonmembers received billions more in benefits due to credit unions’ presence in the marketplace,” he wrote, adding call report data shows “report data shows low-income designated credit unions have $96.8 billion in outstanding small-business loans and 45.9 million outstanding loans to members.”
Nussle noted:
- Credit unions opened 1,373 net branches between 2012 and 2023, while banks closed 19,301 over the same time period;
- Credit unions save consumers with lower credit scores up to $10,000 over the life of a car loan and as much as $50,000 over the life of a home loan; and
- Credit union members are more financially resilient: Equifax data reflect far lower delinquency rates at credit unions — especially among consumers with lower credit scores.
“While banks face the consequences of their actions — from lower trust among consumers to record-breaking fines — they’ve turned to other practices to limit the hit to their bottom line: abandoning communities that need them,” he wrote. “Credit unions for decades have sought reforms to allow them to reach more underserved areas, but bankers push back and cry wolf. They take aim at credit unions’ commitment to serving these low- and moderate-income communities.”
