Variety of Offerings Key to Credit Unions’ Success

August 7, 2001

FOR IMMEDIATE RELEASE
Contact: Tom Dunn
(608) 231-4002
tdunn@cuna.com

MADISON, WI — Credit unions will face increased competition from financial services "mega-malls" in the coming years, according to Vicki Joyal, vice president of Market Research & Information for the Credit Union National Association (CUNA).

"Industry convergence among banks, insurance companies, and investment/ brokerage houses has resulted in similar super-arrays of financial service offerings," says Joyal. "Credit unions will need to seek out strategic alliances that will enable them to compete with these huge financial service providers by offering the widest array of financial products and services possible to attract and retain members."

Joyal also shared insights on several other key issues for credit unions from CUNA’s new 2001/2002 Credit Union Environmental Scan.

• Demographics & Consumer Behavior. Small business owners represent vast untapped potential and will become the most intensely pursued group of clients in the financial services marketplace.



• Marketing & the Competition. Customer Relationship Management (CRM)—a sales and service strategy—seeks to create, maintain, and enhance the relationship between credit unions and their members at all touch points.



• Economics & Finance. The aging population and low member penetration levels among young adults will result in a shortage of peak borrowers – members age 25 to 44.



• Technology & Delivery Channels. Credit unions will need to integrate wireless, the so-called fifth delivery channel, with other delivery channels—branches, call centers, voice response systems and online banking.



• Human Resources & the Workplace. A predicted shortage of 10 million workers over the next decade will require credit unions to focus on innovative recruiting strategies and benefits that match their business goals.



• Financial Products & Services. Wealth management is becoming the major focus of the financial services industry.



• Legislation & Regulation. New tax reform legislation will enhance the asset acquisition and retention potential of credit unions, given expanded portability and contribution limits for IRAs.

Joyal is the publisher of the Credit Union Environmental Scan (E-Scan), now in its 20^th year of publication. Information on these issues and more can be found in the new 2001/2002 E-Scan. The E-Scan provides a comprehensive look at issues impacting the credit union movement from marketing and consumer behavior, to legislative and regulatory initiatives.

The 2001/2002 E-Scan, available in Report (#20583-PR), PowerPoint (#23507-PR) or Video (#30006-PR) formats, can be ordered by visiting www.cuna.org (enter "E-Scan" in the search box) or by calling CUNA Customer Service at (800) 356-8010, press 3. The report version is now shipping. The PowerPoint and Video versions will begin shipping later this month.

With its network of affiliated state credit union leagues, Credit Union National Association serves more than 90% of America’s 10,700 credit unions, which are owned by more than 80 million consumer members. Credit unions are not-for-profit cooperatives where people are worth more than money. For more information, visit www.cuna.org.

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