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Market Data

Credit Union Digital Readiness Study

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Credit unions provide vital financial services to millions of Americans. Because credit unions are owned by their members, they have the opportunity to offer lower interest rates on loans and higher interest rates on deposits.

However, in an increasingly digital world, price is not the only factor in a decision on where to bank or borrow. Consumers want digital access to their accounts. The fastest growing banks and credit unions offer their customers the ability to bank and borrow online and via mobile banking apps.

The purpose of this study is to use NCUA (National Credit Union Administration) data to answer a few questions:

  • Have credit unions adopted digital technologies?
  • Which credit unions are the most advanced?
  • In what areas do credit unions need to do a better job of servicing their customers?

Key Findings

The level of digital adoption varies widely between credit unions. But the study clearly shows that:

  • The largest credit unions (by assets) are far more digitally advanced than the smallest.
  • Credit unions that are digitally savvy grow their member base much more quickly than credit unions that are not digitally savvy

This study shows that the large credit unions are investing in digital technology, growing their user base and creating best-in-class experiences for their consumers. However, there is a real risk for the smallest credit unions. They will need to find cost-effective ways to embrace digital technology, or face risks.

Data

National Credit Union Administration

The NCUA collects information from all credit unions. In addition to financial metrics, the NCUA also collects data from credit unions on digital capabilities. MagnifyMoney has used the data to score the digital adoption rates of credit unions nationally.

The data used in this analysis is from the latest 5300 call report containing data from December, 2015.

Digital Adoption Score Calculation

The table below shows the methods by which members may perform electronic financial services and the services the members may perform digitally.

The digital adoption score is calculated by assigning equal weights to all the services above and examining how many of the services are offered by each credit union.

For example, “Golden 1 Credit Union” offers 20 of the above 24 electronic services, thus it will have a digital adoption score of 83. This score does not judge which digital capabilities are more important than others.

Below you can see the digital adoption score by the size of the credit union. As the data clearly demonstrates, the largest credit unions (with more than $2 billion of assets) are the most digitally advanced, with score of 83. And the smallest credit unions (with assets of less than $250 million) are the least digitally advanced.

The Most Digitally Savvy Credit Unions

Top 5 Credit Unions

Top 3 Credit Unions In Each Asset Class

Membership & Asset Growth

Overall Membership Growth

In an increasingly digital world, consumers are demanding digital access to their accounts. It is not surprising that credit unions with the highest digital adoption scores are actually growing their member base the fastest. Over the last six months, credit unions with a Digital Adoption Score (DAS) of more than 75 grew their membership base by 2.63%. The least digitally advanced credit unions, with score below 25, actually saw a reduction in their membership base. This sends a clear warning to credit unions: if you want to grow and prosper, you will need to invest in digital capabilities.

Overall Asset Growth

Asset growth follows the same trend as membership growth. Credit unions with the highest Digital Adoption Score (“DAS”) experienced the most rapid asset growth. The most digitally advanced credit unions had asset growth of 3.85%, compared to asset reduction for the least digitally advanced credit unions.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Market Data

Bank & Credit Union Product Snapshot – May 2017

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

A snapshot of the best and worst from MagnifyMoney.com’s proprietary database of over 3,000 financial products from over 800 banks and credit unions. Please contact Kellie Pelleiter ([email protected]) for additional data requests.

Highest late fee

$49 – Regions Bank Visa Business Credit Card

Lowest late fee

$0 – Citi Simplicity, PenFed Promise

Highest disclosed APR

(Bank) 30.24% – Continental Finance Surge MasterCard
(Credit union) 23.49% – Alliant Credit Union Visa Platinum Rewards

Lowest disclosed APR

(Bank) 6.90% – USAA Rate Advantage Platinum MasterCard
(Credit Union) – 5.24% – Variable Rate Credit Card from UNIFY Financial CU

Longest 0% balance transfer offer

(Bank) 24 months – Santander Sphere Visa Signature
(Credit Union) 18 months – TruWest Visa Platinum Card, TruWest Platinum Points Visa Rewards Credit Card

Highest cash back rewards with no spending limits or annual fees

Gas

(Bank) 3% – Farmers Rewards Visa
(Credit Union) 5% – Fort Knox Credit Union Platinum Visa Card

Groceries

(Bank) 3% – Cash Rewards American Express® Card from Camden National Bank
(Credit Union) 3% – Golden 1 Platinum Rewards Credit Card

Travel

(Bank) 5% – The Upromise Mastercard By SalliMae
(Credit Union) 4.25% – PenFed Premium Travel Rewards American Express® Card

Dining

(Bank) 5% – The Upromise Mastercard By SalliMae
(Credit Union) 3% – Golden 1 Credit Union Platinum Rewards, Power Travel Rewards World MasterCard By Security Service FCU,Signature Visa Card By State Employees CU Of Maryland

Highest Savings Account Rate – $10,000 Balance

(Bank) – 1.25% Online Savings from PurePoint Financial
(Online) – 1.10% eOne Savings By Salem Fivedirect

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

MagnifyMoney
MagnifyMoney |

Have a question to ask or a story to share? Contact the MagnifyMoney team at [email protected]

TAGS:

Advertiser Disclosure

Market Data

Bank & Credit Union Product Snapshot – April 2017

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

A snapshot of the best and worst from MagnifyMoney.com’s proprietary database of over 3,000 financial products from over 800 banks and credit unions. Please contact Kellie Pelleiter ([email protected]) for additional data requests.

Highest late fee

$49 – Regions Bank Visa Business Credit Card

Lowest late fee

$0 – Citi Simplicity, PenFed Promise

Highest disclosed APR

(Bank) 30.24% – Continental Finance Surge MasterCard
(Credit union) 23.49% – Alliant Credit Union Visa Platinum Rewards

Lowest disclosed APR

(Bank) 6.90% – USAA Rate Advantage Platinum MasterCard
(Credit Union) – 5.24% – Variable Rate Credit Card from UNIFY Financial CU

Longest 0% balance transfer offer

(Bank) 24 months – Santander Sphere Visa Signature
(Credit Union) 18 months – TruWest Visa Platinum Card, TruWest Platinum Points Visa Rewards Credit Card

Highest cash back rewards with no spending limits or annual fees

Gas

(Bank) 3% – Farmers Rewards Visa
(Credit Union) 5% – Fort Knox Credit Union Platinum Visa Card

Groceries

(Bank) 3% – Cash Rewards American Express® Card from Camden National Bank
(Credit Union) 3% – Golden 1 Platinum Rewards Credit Card

Travel

(Bank) 5% – The Upromise Mastercard By SalliMae
(Credit Union) 4.25% – PenFed Premium Travel Rewards American Express® Card

Dining

(Bank) 5% – The Upromise Mastercard By SalliMae
(Credit Union) 3% – Golden 1 Credit Union Platinum Rewards, Power Travel Rewards World MasterCard By Security Service FCU,Signature Visa Card By State Employees CU Of Maryland

Highest Savings Account Rate – $10,000 Balance

(Bank) – 1.25% Online Savings from PurePoint Financial
(Online) – 1.10% eOne Savings By Salem Fivedirect

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

MagnifyMoney
MagnifyMoney |

Have a question to ask or a story to share? Contact the MagnifyMoney team at [email protected]

TAGS: