The Rapid Growth of E-Statements Among Credit Unions

Although e-statements have been around for a few years, their popularity has dramatically increased this year. When Callahan & Associates began tracking the e-statement market in 2002, there were 141 credit unions with assets greater than $25 million dollars that reported using this new technology. That number has more than quadrupled so far in 2003, according to the just released 2003 Credit Union Technology Survey. For that reason, e-statements are experiencing the same level of adoption growth as seen in the early days of Internet banking, which took about the same, short time to reach the 500 credit union mark.

 
 

Although e-statements have been around for a few years, their popularity has dramatically increased this year. When Callahan & Associates began tracking the e-statement market in 2002, there were 141 credit unions with assets greater than $25 million dollars that reported using this new technology. That number has more than quadrupled so far in 2003, according to the just released 2003 Credit Union Technology Survey. For that reason, e-statements are experiencing the same level of adoption growth as seen in the early days of Internet banking, which took about the same, short time to reach the 500 credit union mark.

One of the reasons for this dramatic increase is clearly the perceived cost savings. On average, it costs a typical credit union about 75 cents to print out member statements and send them through US mail. e-Statements have helped reduce these direct mail costs and also provide members with more timely statement information.

Perhaps more importantly to some, e-statements are beginning to offer another direct medium through which credit unions can keep in touch and offer new services to members. For instance, Brian Warfel of Power 1 Credit Union in Pembroke Pines, FL, one of the speakers at our August 14th webinar E-Statement Strategy: Increasing Enrollment and Best Practice Approaches, uses e-statements to encourage members to sign up for on-line banking. In addition, monthly e-statement notifications are now accompanied with relevant information the member may be interested in. Examples of these include an HTML version of their newsletter and ''e-Stuffers'', forms of marketing that are normally included with the paper statement that can instead be included in the e-statement through promotional banners and links. Another innovative credit union, Seven Seventeen in Warren OH, sends forms of marketing via e-statements that are targeted to specific groups of members by such demographics as age.

For credit unions who are still considering implementing e-statements, there are three primary options. They can work with their existing statement printer, find a third party provider that specializes in e-statements or even develop an e-statement system on their own. For those looking at third party vendors, the provider market is very fragmented, an indication of how new this technology is, with only one company accounting for over 10% of the market and just five accounting for more than 5% of the market each:

 

 

 

Aug. 4, 2003


Comments

 
 
 

No comments have been posted yet. Be the first one.