Which came first? Share Draft Penetration or Share Growth.

Is there a strong correlation between above industry average share growth and share draft penetration? Within top five states in share draft accounts per member, it seems to be so.

 
 

Florida’s 229 credit unions led the nation in the number of members that maintain checking accounts. Credit unions in Florida reported 30 percent higher rate than the national average of 43.0 percent. The state ranked second in share growth at 10.5%

Many credit unions consider share drafts a key relationship account. Does a high penetration of share draft accounts lead to share growth? When looking at the top five states, the answer is yes. All show share growth that exceeds 5.4 percent. Looking at another measure, average share balance, Florida, New Hampshire and Washington all have average share balances over $7,000.

Top Five Performing States in Share Draft Penetration
Data as of 12/31/04
         
   
#Share Draft Accounts/
Annual
Average Share
Ranking State
#Members
Share Growth
Balance
1 Florida
55.7%
10.5%
$7,029
2 Arizona
54.3%
6.5%
$6,317
3 New Hampshire
50.3%
6.0%
$7,113
4 Washington
50.1%
6.0%
$7,712
5 New Mexico
49.4%
7.1%
$6,687
  US Totals
43.0%
5.4%
$6,679

Comparing national averages gives only one benchmark. Examining trends in your state or among similar business models helps to make an apples-to-apples comparison based on economic environment, operational capacity and resource capabilities.

 

 

 

April 11, 2005


Comments

 
 
 
  • Thank you, we in California will go to work. SESLOC FCU, slo, CA
    Anonymous