Security, BCP Top CU List of Tech Expenditures in New Technology and Spending Report

April 21, 2008

FOR IMMEDIATE RELEASE
Contact: Katye Long
CUNA Communications; (608) 231-4038
klong@cuna.coop

MADISON, Wis. - When it comes to technology, credit unions plan to spend the biggest portions of their budgets on security and business continuity planning over the next three years, according to the results of a just-released CUNA survey.

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In the 2008-2009 CUNA Technology and Spending Report, credit unions were surveyed about their top three technology expenditures in the next three years. Overall, 47 percent of respondents cited information technology (IT) security, followed by business continuity planning at 39 percent, risk management/compliance automation at 34 percent, and expanding e-commerce activities, also at 34 percent.

However, those priorities change somewhat as asset size increases. A higher percentage of larger credit unions with $500 million or more in assets cite expanding e-commerce activities than cite IT security as one of their top three expenditures.

In addition to the top expenditures, the report details credit union technology spending in terms of total technology budget and its percent of overall operating expenses, average annual vendor expenses, functions supported by IT staff and vendors, and more. It also uncovers the average dollar amount and percent of total budget allocated to specific areas such as hardware, software, security measures, data/voice communications, online banking, training, and the like.

The report then explores credit unions current usage and future plans for several key areas of technology: Internet banking, electronic bill payment, online loan applications, marketing customer information files and relationship management, security, and general technology services.

“Retail financial services are no longer a physical delivery system with technology layered on top. They are rapidly becoming a technology-based business, supplied through physical and online delivery channels,” said Beth Soltis, senior research analyst for CUNA’s Center for Research and Advice. “That is the future for all financial institutions, including credit unions. But it’s a future that must be tempered by business realities and return on investment expectations in the here and now. That’s why spending decisions must be made wisely: Your core business function is at stake.”

The report, along with its key findings and insights, are the topics of the upcoming “Exploring Credit Union Technology and Spending Trends” webinar, taking place May 15. For more information or to register, go to training.cuna.org and enter “EW51508” in the Event Finder search engine.

CUNA’s Technology and Spending Survey Report is available in hard copy or as a downloadable PDF. For more information or to order, go to buy.cuna.org and enter stock number 28103 in the product finder search box, or call (800) 356-8010, press 3, and use the stock number as a reference.

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About CUNA

With its network of affiliated state credit union leagues, Credit Union National Association (CUNA) serves 90 percent of America's 8,500 credit unions, which are owned by more than 90 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information, visit www.cuna.org.

Copyright © 2008 - Credit Union National Association, Inc.