Unlocking Hidden Business Opportunities in Your Credit Union Membership

Untapped Opportunity in Your Membership

Credit unions have always thrived on deep community ties and member-first service. Yet, an overlooked truth remains: many consumer members are also business owners. Industry research suggests that as many as 40% of credit union members run a small business, side hustle, or entrepreneurial venture.

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For a mid-sized credit union with 50,000 members, this translates to over 10,000 potential business borrowers hidden in plain sight. Identifying and engaging these members before they turn to competitors is the key to unlocking meaningful growth in your commercial lending portfolio.

Why This Matters: Business Owners Are Underserved by Credit Unions

Despite their community orientation, credit unions serve only a small fraction of business owners:

• According to the Federal Reserve’s 2024 Small Business Credit Survey (SBCS), only about 15% of small businesses report having any relationship with a credit union, and even fewer list them as their primary financial partner.
  
  
• By contrast, most small businesses turn to large banks (48%) or community banks (29%) for their primary financial services.
  
  
• Yet, when business owners do engage with credit unions, satisfaction and approval rates soar, with up to 76% loan approval rates compared to significantly lower figures at big banks.
  
  

This gap is both a challenge and an opportunity. While awareness remains low, the value proposition of credit unions—relationship-driven, flexible, and community-focused banking—is precisely what entrepreneurs seek when growing their ventures.

Data as the Bridge: How Livesight Helps Credit Unions Identify Business Owners

The challenge has always been visibility. How do you know which of your consumer members also own a business?

That’s where Livesight’s real-time data platform creates an advantage:

• Direct government-verified data from all 50 U.S. Secretaries of State.
  
  
• IRS-linked signals and firmographic details for accuracy.
  
  
• Seamless API integration, allowing credit unions to scan existing consumer databases for business ownership indicators.
  
  
• Refreshable data at faster intervals than traditional providers—keeping you up-to-date as businesses form or dissolve.

By integrating this into their member engagement strategies, credit unions can proactively identify opportunities instead of waiting for members to request them.

Real-World Examples of Credit Unions Unlocking Growth

Triad-Area Credit Unions: Commercial Lending on the Rise

Credit unions in North Carolina’s Triad region reported over $1.26 billion in commercial loans by late 2024. By investing in business data tools and targeted outreach, they successfully grew their portfolios while maintaining high approval rates.

Why Now? Market Momentum for Credit Union Business Lending

The timing could not be better.

• Business lending among credit unions has surged. In 2022, credit unions reported a 24.5% increase in commercial loans, one of the fastest-growing asset classes.
  
  
• 80% of credit unions plan to expand business services by 2025, according to industry reports.
  
  
• Membership growth is strong: Entrepreneurs using credit unions as a starting point rose from 2.4% in 2010 to 6.3% in 2016, per Federal Reserve Survey of Consumer Finances data, with continued momentum since.
  
  

These trends point to an inflection point: credit unions are positioned to seize market share from large banks, provided they have the correct data to compete.

How to Put This Into Action

Here are three practical steps to help credit unions get started:

1. Integrate Real-Time Business Data into Member Insights

• Use Livesight’s API to enrich member profiles.
  
  
• Flag members who own businesses, even if they only appear as consumers.
  
  
• Identify newly registered businesses in your field of membership, ensuring you’re first to approach.

2. Build a Targeted Outreach Strategy

• Segment identified business owners and tailor offerings like business checking, equipment loans, or lines of credit.
  
  
• Train staff to recognize opportunities when consumer members bring up work-related financial needs.

3. Leverage Early Engagement for Loyalty

• Approach entrepreneurs at the startup stage, when they are most in need of guidance and financing.
  
  
• Position your credit union as a partner in their entrepreneurial journey, not just a lender.

Leverage trust + actionable data to drive results

Credit unions already have the trust of their communities. By pairing that trust with actionable data, they can uncover hidden opportunities, reduce risk, and provide the financial support entrepreneurs need to succeed.

Every day, new businesses are being registered—many by your own members. The question is: Will you be the first to reach them, or will a big bank get there first? We’re here to help you get started. Book a demo today!

Frequently Asked Questions (FAQ)

Why don’t more business owners currently use credit unions?

Most small businesses default to big banks due to brand awareness and convenience. However, surveys show that credit unions provide higher approval rates and better satisfaction, making this an awareness and outreach challenge, rather than a value problem.

How accurate is Livesight’s business ownership data?

Livesight pulls data directly from all 50 U.S. Secretaries of State, the IRS, and verified firmographics. This ensures the information is both up-to-date and government-sourced, minimizing false positives.

How quickly can a credit union integrate Livesight’s tools?

With API-based integration, many institutions can start screening their consumer member base within weeks. The process is designed to be seamless and minimally disruptive to existing systems.

What types of businesses can Livesight detect?

From sole proprietorships and LLCs to corporations and partnerships, Livesight captures the full spectrum of registered businesses, including newly formed entities.

What is the most significant benefit for credit unions?

The main advantage is growth with reduced risk. By identifying qualified business owners early, credit unions expand lending portfolios, lower acquisition costs, and deepen member relationships.