What Can Increasing your Electronic Services Offered Do for your Credit Union?

Research shows a direct correlation between membership growth and the number of electronic services offered. Find out just how much growth can be expected!

 
 

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.

Credit unions 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 services.


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 software.

 

 

 

July 15, 2002


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Comments

 
 
 
  • This was an extremely well written and informative article! Job Well done Niral Patel.
    Anonymous