Community Banks View CUs as Primary Competitor for Consumer Loans

Community banks view credit unions as their primary competitor for consumer loans, according to a survey.

The survey was conducted by the Federal Reserve and the Conference of State Bank Supervisors.

The survey found that 41.3 percent of community banks stated that credit unions are currently their primary competitor for consumer loans. Survey respondents believe credit unions will in the future be their primary competitor for consumer loans (35.6 percent).

With regard to mortgage loans, 13.5 percent of community banks identified credit unions as their current primary competitor. In the future, 13 percent of community banks expect credit unions to be their primary competitor.

Only 5.5 percent of community banks view credit unions as a primary competitor for small business loans. However, the expectations is for competition from credit unions in small business lending to grow as 10.7 percent identified credit unions as their primary future competitors.

Only 3.3 percent of community banks identify credit unions as their primary competitor for commercial real estate loans. In the future, 6.9 percent of community banks believe credit unions will be their primary competitor for commercial real estate loans.

With regard to agricultural loans, banks don't view credit unions as a primary competitor in the present or the future.

Read the survey report.