With the growing popularity of Internet opportunities, credit unions
continue to provide more electronic services to their members every
year as they strive to become their members' primary financial institution.
While some credit unions hesitate before providing more services,
those who have expanded their service offerings have reaped the
benefits. Examples of electronic services include items such as
Internet home banking to more advanced features such as share account
transfers and electronic signatures.
use these services to please and retain members while also attracting
new members. In the first quarter of 2002, those credit unions that
offer more services have seen greater increases in membership. Credit
unions that offered 11 electronic services or more increased their
membership by 4.34% as compared to those credit unions that offer
0-5 electronic services, which increased their membership by 3.20%.
Not only did
membership grow, but these members took advantage of and utilized
the services offered. Credit unions that offered more than 11 services
had a credit card penetration rate (number of credit card accounts/
number of members) more than 8.5 percentage points higher than those
that offered 0-5 services. Share draft penetration for credit unions
providing 0-5 services was 34.29% compared to a 47.13% rate for
credit unions that offer more than 11 services. In addition, auto
loan penetration rates are 13.32% for those credit unions that offer
0-5 services and 17.90% for those that offer more than 11 services.
Credit unions offering more than 11 services also returned an astonishing
1.2% on their average assets.
As credit unions
consider whether or not to offer more electronic services, member
needs and wants should be considered. Credit unions that are member-focused
are performing well by continuing to maintain and add new electronic
All Industry-side data refer to credit unions over
$50 million in assets as reported for the first quarter of 2002.
All data was analyzed using Callahan & Associates' Peer-to-Peer