Callahan & Associates launched a survey of credit unions earlier this year to identify and better understand the priorities of their planned technology spending. This marks the fourth year that credit unions have responded to such a survey. The results provide an indication as to the direction credit unions, particularly larger ones, are taking with their technology initiatives.
One of the survey questions asked about the change in the 2007 technology budget versus the 2006 budget. Sixty-three percent of respondents indicated their credit union’s technology budget was increasing year-over-year, while only sixteen percent indicated there would be a year-over-year decline.
Larger credit unions were more likely to be increasing their budget in 2007, as shown below. Core processing conversions and investment in new VOIP technology were the most frequently mentioned investments among credit unions predicting the largest increase in their technology budget. A number of these credit unions also mentioned investing in their member networks such as ATM and call centers.
A total of 135 credit unions representing $100 billion in assets responded to the survey. This represents approximately 14% of industry assets as of year-end 2006, with an average asset size of $738 million and a median asset size of $402 million. Respondents ranged from $6 million to $7 billion in assets.
The complete survey results are published in the just released 2007 Technology Survey. The two volumes of the publication cover not only credit union technology spending trends but also provide detailed information on the core processing market, e-channel trends, and dynamics within the physical delivery channels.