Increasing member usage of credit union services is a direct result of how well products are promoted and provided. Member Service Usage is a component of Callahan & Associates’ Return of the Member score. The credit unions that are leaders in this category have a high number of core account relationships with their members.
The factors of Member Service Usage are:
Number of Share Draft Accounts / Members
This factor helps determine if members consider their credit union to be the primary financial institution (PFI). In 2006, 43% of members considered their credit union to be their PFI, a 3% increase from 2000, according to CUNA’s 2006 National Member Survey.
Number of Auto Loan Accounts / Members
Auto lending, which accounts for $89.5 billion of credit union loan balance and remains the industry's bread and butter, is a major component of the loan portfolio and shows whether members are using their credit union's services.
Number of Credit Card Accounts / Members
With an average outstanding balance of $2,118, members are taking advantage of credit union credit cards' low rates and fees. In the first quarter of 2007, credit card penetration stands at 17%, up from 16.5% a year ago.
Total Loan and Savings Accounts / Members
A variety of lending services conveys strong loan quality.
Three Year Member Growth
Strengthening existing member relationships is a key path to greater wallet share, but tracking new member growth is a key component of Member Service Usage. Monitoring member growth in turn measures member response to products and services.
Fee Income / Members
Does the credit union charge less than its peers in fees? Fees are not looked upon kindly by members, but credit unions continue to rely on fees less than banks and thrifts, therefore enhancing member value. Lower fees often result in higher member service usage.
Click the image to view the credit union industry's Member Service Usage leaders for 1Q 2007