Boston, MA, August 26, 2009 – A new report from Aite Group, LLC examines challenges and opportunities faced by credit unions in the current economic environment. Based on a July 2009 survey of 93 U.S. credit unions fielded by Aite Group with the cooperation of the Credit Union Executives Society (CUES), the report also analyzes how the credit union model is evolving, and how credit unions must continue to change and leverage new opportunities to ensure future success.
The financial crisis and current recessionary environment have created new challenges for credit unions, but have also brought new opportunities for credit unions to grow their market share and broaden their member base. Over the last year, credit unions have been able to attract new members away from larger banks and even grow deposits. Even so, credit unions must do more to maintain positive market momentum and ensure that the credit union model continues to thrive. Aite Group's research reveals that many credit unions continue to ignore a range of new products and services that carry limited risk and are not capital-intensive when introduced using the right vendor partners.
"While credit unions fared extremely well through the financial downturn, which saw consumers grow wary of traditional banks, they must remember that growing deposits is traditionally a great challenge for them," says Christine Barry, research director with Aite Group and author of this report. "Credit unions need to differentiate themselves, not only by continuing to offer superior levels of service, but also by better leveraging technology, implementing member segmentation strategies, and offering unique member programs that appeal to segments beyond credit unions' traditional member base."
This 43-page Impact Report contains 41 figures and one table. Clients of Aite Group's Retail Banking and Wholesale Banking services can download the report.