Dec. 13, 2004


Comments

 
 
 
  • Great reserarch numbers on growth.
    Anonymous
     
     
     
  • What have bank deposits done over this same period, I would guess that the low rate environment has a great deal to do with the slow down in deposit growth.
    Anonymous
     
     
     
  • The stats are great but we need someone to analyses why member growth and share growth are so slow, because even though CUs have not raised their rates they are still paying more than banks.
    Anonymous
     
     
     
  • Recent data has shown that there is not a strong correlation between core deposits in credit union and banks. Other underlying causes, such as the upturn in the stock market, credit unions' delayed responsiveness to rising interest rates, and aging demographics, are more likely attributable to the decline in share growth. Since many credit unions have a difficult time competing with banks on convenience or brand recognition, they tend to leverage their superior rates as a way of gaining deposits. Some credit unions now attempt to lure new business by promoting highest rate guarantees and above-market rates on CDs and money market accounts. These tactics are necessary for organizations that do not have the advantage of large-scale corporate visibility, or which do not offer the same convenience in terms of branch network size or service offerings. -- Scott Homa, Callahan & Associates Industry and Analysis
    Anonymous
     
     
     
  • In regards to the slow member growth, how many of the credit union experiencing negative growth are cleaning up inactive accounts to reduce operating expenses vs. those who have members actively closing accounts?
    Anonymous
     
     
     
  • While most credit unions are offering higher savings more than the traditional big banks, one only has to look to some of the community banks and institutions that are primarily online, such as Countrywide Bank & ING Direct. These financial institutions blow credit unions out of the water.
    Anonymous