Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
FIs turn to relationship products to raise wallet share
SAN ANSELMO, Calif. (1/23/09)--Research indicates that financial institutions--including credit unions--are bundling relationship products to raise their wallet shares. With relationship products, members are rewarded for purchasing multiple products from a credit union. Financial institutions are offering rate premiums for depositors who have a multi-product relationship with them (BusinessWire Jan. 21). For example, the average annual percentage yield (APY) for a regular share certificate is 1.85%, while the average APY for a relationship share certificate is 2.15%, according to Market Rates Insight (MRI). “This measure was designed to encourage existing and new [members] to increase their deposit surface with the institution by having multiple deposit products such as checking, savings, [share certificates] and others,” said Dan Geller, MRI executive vice president. Institutions also are using statistical modeling to optimize product pricing by breaking demographic and geographic markets into sub-groups, and pricing products accordingly, MRI said. MRI is a research firm that tracks rates for deposits, loans and fees for financial institutions.


RSS print
News Now LiveWire
Number of @CUNA-certified fin. counselors hits 2,175 http://t.co/3fQGcdxyLO
10 minutes ago
Jobless claims drop by 19,000 this week #Market #NewsNow http://t.co/LSqaYCsmX4
54 minutes ago
#RBC draws letters from @SenatorBegich, @SenShelby to @TheNCUA See #NewsNow http://t.co/JvLBwkHwxF
2 hours ago
It's #summercamp with a financial literacy, #creditunion twist http://t.co/5eaps9ZoVB
3 hours ago
Mich #creditunions encourage everyone to #CULunchLocal Oct 14 as part of #ICUDay http://t.co/NZp71fgr8Z
4 hours ago