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The NAFCU Board of Directors and senior staff met with Federal Reserve Board of Governors Michelle Bowman Monday to share the association's 2023 Annual Report on Credit Unions, which details the latest issues and trends affecting credit unions and the impact of Fed actions. A copy of the report – now available online – was sent to members after the meeting.

Through the report, NAFCU details updates in five key advocacy areas, including: industry growth, regulatory relief, technology and innovation, data protection, and the fair market.

Some highlights include:

• total credit union membership now exceeds 137 million, with membership growing 4.4 percent in 2022, versus a long-run average of roughly 2.5 percent;
• NAFCU members noted that on average, 26 percent of total interchange income supports credit and debit rewards programs;
• there are about 531 CDFI credit unions now, a rise of over 50% in two years, and credit unions represent more than one-third of all CDFIs;
• 38 percent of NAFCU members are considering joining FedNow in a receive only capacity and 31 percent are considering joining with both send and receive capabilities;
• the top tech investment area for NAFCU members was data analytics, followed by fraud prevention; and
• NAFCU members have reported that the area where they see the most competition is deposits, with large banks as the clear top competitor.

The report also highlights NAFCU's policy priorities in relation to its findings and includes priorities for a healthy regulatory environment in which credit unions can grow and thrive.

The information compiled in the 2023 Annual Report on Credit Unions is based on the association's Federal Reserve Survey, an annual assessment of NAFCU members covering topics discussed in the report. The report also draws on data collected for NAFCU's Economic & CU Monitor and CU Industry Trends Report.

NAFCU's Board of Directors has met with Federal Reserve Board members for many years to discuss issues of mutual concern affecting the credit union community. his marks the association’s 30th year of meeting with the Fed.