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
Sony hack linked to N. Korea, says U.S.intelligence via @nytimes http://t.co/fE3PtMgEFz
1 hours ago
.@CUNAMutualGroup Klewin shares final thoughts, forecast on lending regulations with @cumagazine before retiring http://t.co/v78QY3QwqB
4 hours ago
Current @CUNA COO @JillTomalin promoted to deputy chief of staff
4 hours ago
#CU Effect:@ChartwayFCU 'branch of the future' 2 benefit members, staff. 2nd installment of new News Now series here:http://t.co/ImBY4nupEj
5 hours ago
U.K. regulators have given formal authorization for the @c_of_e to form a #creditunion.
5 hours ago