
Membership growth is hard to maintain for some credit unions.
The NCUA’s Q1 2024 Quarterly Credit Union Data Summary revealed that credit unions of nearly every size were struggling with membership growth (except those with assets above $1B).
- Federally insured credit unions with assets of at least $500M but less than $1B in assets saw a $7.4% decline in membership.
- Federally insured credit unions with at least $50 million but less than $100 million in assets saw a 5.4% decline in membership.
- Federally insured credit unions with assets of at least $10 million but less than $50 million saw a 5.3% decline in membership.
This decline has also had an impact on deposits.
A report from Fitch in January of 2023 explained that they would expect to see bank deposits “shrink meaningfully through 2024, as “depositors seek higher-yielding alternatives for non-operating cash”, and “the Fed continues to shrink its balance sheet through quantitative tightening.” Fitch expected U.S. banking industry deposits to decline a further $1.4 trillion in 2024.
According to another report from TruStage, in March of 2023, the average member had $13,818 in total savings deposits, a $286 year-over-year drop, and the largest in credit union history.
While there is no silver-bullet solution, New York University (NYU) Federal Credit Union offers a prescient view and compelling blueprint for how to position your credit union to grow amid financial challenges.
When Mira Ness, CEO of NYU FCU, joined the credit union in 2006, it had approximately 2,000 members and roughly $7M in assets. Today, NYU FCU has about 10,000 members and more than $70M in assets.

Invest in Products and Services That Address Member’s Challenges
Over the years, NYU Federal Credit Union has expanded what it’s able to offer its members. That includes online banking, Zelle, and Apple Pay, as well as student loan consolidation, quick cash loans, and credit-builder loans. “We are able to provide the loans that our members need,” Mira said. “We’re constantly trying to listen to our members about what they want.”
For example, one of the first additions that Mira made at NYU Federal Credit Union when she joined 17 years ago was a mortgage program. Within six months of joining, she added five mortgage loans to the credit union’s portfolio, which allowed the credit union to begin making money on interest “right away.” Since then, NYU Federal Credit Union has continued to expand its mortgage program to include mortgage preparedness loans, first-time homebuyers’ loans, and down-payment assistance loans, which has become the credit union’s most popular offering.
Invest in Partnerships
When Mira took up her position, she began investing in partnerships. NYU Federal Credit Union partners with Citibank to give its members access to the bank’s sprawling network of ATMs. They also partner with Neighborhood Housing Services of NYC to host financial education seminars about available housing grants for low-income members. The credit union even partners with Citi Bike NYC to provide its members with a considerable discount to access thousands of bikes across New York City, Jersey City, and Hoboken. However, one of NYU Federal Credit Union’s most innovative partner relationships is with United Nations Federal Credit Union, a large, international credit union that has a presence in New York City.
Although NYU Federal Credit Union’s assets have grown considerably since Mira joined in 2006, the credit union is still too small to carry a high number of mortgages on its balance sheet, despite the demand from its membership. Therefore, to meet its members’ needs, the credit union forged a partnership with the United Nations Federal Credit Union. NYU Federal Credit Union sells its mortgages to United Nations Federal Credit Union but holds onto 10% of each loan. In return, United Nations Federal Credit Union gets to improve its balance sheet, while NYU Federal Credit Union gets to serve more members. Last year, the arrangement resulted in NYU Federal Credit Union earning approximately $400,000 in fees, which Mira says was a “huge boost” to the credit union’s bottom line.
Another partnership that’s proving to be beneficial for NYU Federal Credit Union is with CNote. In 2023, NYU Federal Credit Union became a CNote Impact Cash® Partner. CNote clients deposit Impact Cash dollars in mission-driven NCUA-insured partners like NYU Federal Credit Union, generating returns on institutional investors’ cash allocations while supporting financially underserved communities across the country. “Because we need cash flow, and we have to have liquidity for our transactional mortgages,” Mira said, “CNote has been very helpful for us.”
Invest in Financial Education
Given the popularity of its mortgage programs, NYU Federal Credit Union offers numerous financial education and information seminars. Although much of the credit union’s business flows out of these seminars, Mira says that that’s not her and her team’s goal. “Our goal is education and to help people,” she said. “We want people to get the best possible deal, and if someone else is going to be able to give it to them, we tell them to go for it. Educating people and gaining trust is the most important thing.”
This information should not be relied upon as research, investment, legal or financial advice. CNote is not a legal, financial, accounting or tax advisor. This material is strictly for illustrative, educational, and informational purposes and is subject to change. Investing involves risks, including possible loss of principal.
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