Musings from the CU Suite

Written by Anthony Demangone, Powered by NAFCU

Where do credit unions make their money?

Some would say loans. Others would get more specific.

Car loans. Home loans. Credit cards.

I was with a group of credit union peeps yesterday when it hit us. 

Do car loans make credit unions money?

Yes, and no.

People driving cars makes credit unions money. If more people drive cars, there will be the need for more cars. And there will be more car loans. 

The converse is true.

Mortgages? Or the desire for people to own their own home? Which really drives credit union income. One leads to the other.

Business loans? Or the desire for entrepreneurs to run down new ideas? 

It is the behaviour that leads to the business. And that's why it is so important to understand what people are doing. 

Will people need cars more in the future? Housing? Starting businesses? 

I wish I had hard answers. But I think those at least are the right questions.