Using data to demonstrate the credit union difference

During GAC this week, America's Credit Unions' team of economists shared some of the myths often heard about credit unions and the facts to counter them. You likely have heard these myths before. Now, you have the data to back up your responses and demonstrate the credit union difference.

Myth #1: "Credit unions are just like banks"

Fact: Credit unions produce significant positive outcomes that are entirely unique within the financial sector.

  • As not-for-profit cooperatives, credit unions are democratically controlled by member-owners. Their leadership generally reflects the communities they serve with mostly volunteer boards. No stockholders result in $37 billion in direct and indirect financial benefits to members through lower loan rates, higher savings yields, and fewer and lower fees.
  • There is significant restriction on who they can serve based on the field of membership. Regulation and oversight are handled by a separate entity, the National Credit Union Administration (NCUA).
  • Credit unions have a federal income tax exemption based on their not-for-profit structure and member ownership.
CU financial benefits.png

Myth #2: "Credit unions harm banks"

Fact: Banks are thriving—despite credit union presence in the market.

  • Banks are now reporting record earnings, record stockholder dividends, and the highest asset growth rates in over a decade.
  • Banks have a near-monopoly presence in the market with a 91.2% market share of the total financial institution assets based on the end of the third quarter data of 2024. Bank assets grew $5.7 trillion in the past 5 years-2.5 times more than credit unions have grown since their start.
  • Two U.S. banks (JP Morgan Chase and Bank of America) individually control more assets than the total assets in all 4,600 U.S. credit unions.
Bank vs CU depository assets.png

Myth #3: "Credit unions don't pay taxes"

Fact: Credit unions and their more than 140 million members bear a significant tax burden while bank tax rates have declined.

  • Credit union contributions in revenue accounted for a total of $36.3 billion in taxes in 2023: $23.3 billion in federal taxes and $13 billion in state/local taxes.
  • Credit union contributions include both direct payments by credit unions ($12 billion taxes in 2023 with $8.7 billion in federal taxes) and indirect payments from employees and other economic entities that interact with credit unions.
CUs pay in taxes.png
  • The budgetary impact of bank tax breaks is 16 times greater than the impact of the credit union federal tax status.
  • Banks receive $28.8 billion tax cut in 2017 through the Tax Cuts and Jobs Act, which, over the next 10 years, will result in $447 billion in tax breaks.
Bank tax breaks vs cus.png

Removing the tax status would threaten the survival of the 4,600 credit unions and greatly erode the financial well-being of over 140 million credit union members, along with the loss of the broader benefits credit unions provide to communities.

Find even more of the latest data you need to help tell your credit union's story, including the Credit Union Impact Dashboard and CU Snapshots.