Technology Spending Expected to Exceed $600 Million in Credit Unions in 2004

A recent survey by Callahan & Associates indicates that technology spending likely represents the third highest expenditure among credit unions in 2004, just behind salaries and office operations.

 
 

A recent survey on 2004 technology spending priorities among credit unions by Callahan & Associates revealed the extent to which technology has become embedded in credit union operations. Technology is likely to be the third highest expenditure after salaries and office operations among responding credit unions, accounting for between 12 and 14% of total operating expenses based on the median response. This figure includes software, hardware, consulting, security and communication, but excludes salaries and depreciation.

As shown in the graph below, the proportion of operating expenses dedicated to technology varies among credit unions but asset size does not appear to be a factor in this number. Based on the 12-14% median response, it is estimated that credit unions will spend between $650 million and $800 million on technology in 2004.

 

 

 

July 5, 2004


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