Annual Checkup Finds a Greater Share of Credit Unions Now Offer Investment Services Than Banks
The number of US depository institutions continues to decline, as institutions gobble one another up to achieve scale and market relevance.
As the number of FDIC-insured banks has declined, so has the number of banks selling investments, which shrank by 3% during 2024.
The share of banks selling investments has held steady for the past decade.
Credit unions have experienced similar consolidation.
Yet, the number of credit unions offering investment services continues to increase, indicating that more and more credit unions are entering the business that were not before.
The share of credit unions selling investments has increased steadily, growing to 24.4% by year end 2024 and surpassing, for the first time ever, the share of banks in the investment services business.
“The fact that credit unions have now surpassed banks in the share offering investment services represents a significant milestone for the industry,” said Chris Thompson, Managing Director of Business Consulting and Marketing Strategy at Financial Resources Group Investment Services. “This shift reflects the strategic priority many credit unions are placing on delivering comprehensive financial solutions to their members. As demand for personalized financial guidance continues to grow, we are seeing more credit unions embrace investment services as a core offering to strengthen relationships and enhance member value.”
“At Financial Resources Group, we support credit unions and banks alike in building scalable, compliant, and impactful investment programs,” Chris added. “Credit unions’ ability to expand their wealth management capabilities speaks to their agility and deep understanding of evolving member needs. We remain committed to partnering with financial institutions to help them meet these demands and position their investment programs for long-term growth.”
About the Kehrer Group Annual Industry Checkup
Since 2012 Kehrer Group has combined proprietary and industry data to provide an annual review of the health of investment services in banks and credit unions. The data for this year’s Checkup cover 2,343 of the banks and credit unions that provide investment services, which collectively manage 8,892 advisors. Financial Resources Group and Terrapin Technologies sponsored the 2024/2025 Annual Industry Checkup.
About Financial Resources Group
At Financial Resources Group, we value the power of partnerships. Thank you to our partner banks and credit unions for collaborating with us to help your advisors navigate through their financial advising journeys. Our goal is to guide your investment program towards a path of success. Working in lockstep with our partner financial institutions across the country, we develop a strategy to enhance your program’s business, grow revenue, help attract new relationships, and recruit/retain top talent.
The services we provide — onboarding, marketing, compliance, technology, accounting, business development/recruiting, and more — are enhanced by the positive relationships we have with our partner financial institutions. Contact us to learn how partnering with us can lead to empowering your advisors.