Hartford Business Journal

HBJ082123UF

Issue link: https://nebusinessmedia.uberflip.com/i/1505743

Contents of this Issue

Navigation

Page 23 of 31

24 HARTFORDBUSINESS.COM | AUGUST 21, 2023 FOCUS: BANKING & FINANCE Regulatory changes allow credit unions to broaden membership fields By Michael Puffer mpuffer@hartfordbusiness.com R ocky Hill-based Nutmeg State Financial Credit Union is the first member-owned coopera- tive to attempt to expand its member- ship field under a new state law. In June, state lawmakers approved several banking industry regulatory changes, including one that allows state-chartered credit unions to enroll members based on geography, employer groups and associations, rather than one or the other. The changes, which go into effect Oct. 1, also expand the types of associations that qualify for credit union membership. Bruce Adams, pres- ident and CEO of the Credit Union League of Connecticut, said the shifts in state law come closer to leveling the playing field between state-chartered credit unions and those chartered either federally or by other states. "What we allowed was for credit unions to mix and match various fields of membership, and added associations," Adams said. Nutmeg, with $562.4 million in assets, is currently open to people who live, study, volunteer, worship or work in Middlesex, Hartford, Tolland and New Haven counties, as well as parts of Fairfield County. It recently applied to the state Department of Banking to serve members and employees of the AAA Club Alliance, as well as employees and members of the nonprofit Community Impact Fund. Nutmeg serves about 42,000 members in 10 branches. It also has an office at Rocky Hill High School. Its Glastonbury branch hosts a AAA office. Pat Ahern, Nutmeg's chief operating officer, said an expanded membership field would broaden enrollment potential. Need for growth Adams said allowing credit unions to broaden their membership fields could slow the consolidation wave that has swept through the industry over the past 15 years. Connecticut credit union assets and enrollment have grown during that time, even as the number of institutions has been cut dramatically through mergers. At the close of 2007, Connecticut was home to 148 credit unions with a combined $7.1 billion in assets and 884,449 members. Fifteen years later, at the end of 2022, the number of individual Connecticut credit unions dropped 45% to 82 institutions. At the same time, Connecticut credit union membership grew 6.8%, and assets nearly doubled to $14.7 billion. Credit union executives have cited higher regulatory and operating costs, and a need to modernize as factors driving consolidation. "With an expanded basis for membership, credit unions will have more options than ever to figure out how to navigate the future," Adams said. "If you add more potential customers to the market, you have more options for growth." REGISTER YOUR FOURSOME TODAY! PRESENTED BY HTTPS://E.GIVESMART.COM/EVENTS/WCP/# CT GOLF CLASSIC SUPPORTING BREAST CANCER RESEARCH THURSDAY, SEPTEMBER 21 1 1:00 AM - REGISTRATION & BRUNCH 12:30 AM - SHOTGUN START / SCRAMBLE FORMAT DINNER & GOLF OPTIONS AVAILABLE Bruce Adams 1M 800,000 600,000 400,000 200,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 CT CREDIT UNION MEMBERSHIP Source: National Credit Union Administration MEMBERSHIPS

Articles in this issue

Links on this page

Archives of this issue

view archives of Hartford Business Journal - HBJ082123UF