Boston, February 22, 2011 – A new report from Aite Group highlights key trends that are shaping the future of the U.S. credit union industry, and discusses how credit unions will leverage technology to meet their objectives. Based primarily on the results of an online survey of 83 U.S. credit unions, conducted by Aite Group during December 2010 and January 2011, the report details credit union demand for more than 25 different technologies.
U.S. credit unions, like other financial services segments, are faced with new market conditions as a result of the financial crisis. Credit unions have seen far fewer failures than their bank counterparts over the last few years, but have had to alter their strategies and business models to operate in the “new normal.” These institutions continue to be challenged by stringent regulatory requirements, declining loan portfolio balances, and rising losses associated with fraud. The role technology plays in credit union strategies has grown more critical than ever before as a way to overcome these challenges. Technology will also be used to attract new members, compete against larger institutions, and ensure future growth and success.
“Several opportunities exist for credit unions in the current marketplace,” says Christine Barry, research director with Aite Group and author of this report. “By leveraging technology (such as the online and mobile channels), and moving toward new strategies (to better target small-business customers, for example) credit unions will be better positioned to take advantage of these opportunities.”
This 38-page Impact Report contains 22 figures and one table. Clients of Aite Group's Retail Banking or Wholesale Banking service can download the report.