Credit unions continue to show phenomenal share growth, sound loan quality and increased earnings compared to one year earlier. As they continue to seek ways to improve performance, many credit unions are thinking about implementing relationship-based pricing, a strategy for increasing profitability through more active member participation.
The percentage of members using key products can indicate the extent to which the credit union is being used as its members' primary financial institution. The percentage of members with share draft and certificate accounts has been stable for the past few years; as of June 2002, penetration rates on those products were 48% and 11%, respectively. However, the percentage of members using three key products - credit cards, auto loans and IRAs - has been stagnant or declining since 1997: