Credit Union Technology Budgets

By Jon Haller
Director of Market Research,
Credit Union National Association

Despite the fact that on-site office visits remain to be members’ single, most relied-upon type of financial services distribution channel, from a transaction number standpoint, nothing can cast any doubts on the importance and necessity of offering remote-banking alternatives, such as Internet banking, ATM/debit cards, and electronic bill payment.

Member acceptance and active use of the various remote-banking alternatives differs significantly from one type to the next, but few doubt that members will ultimately rely more heavily on most of these methods—particularly PC banking and electronic bill payment—when conducting financial business.

Credit unions, of course, realize this and are adding these services and/or upgrading their capabilities, and marketing these services at an accelerated pace. Credit unions with marketing budgets are devoting an average of 13% of their marketing dollars to promoting their remote-banking services, according to CUNA’s 2002 National Member Survey.

Moreover, in 2002 credit unions budgeted for an average of nearly $95,000 (excluding staff salaries and benefits) in technology expenditures, according to preliminary information from CUNA’s upcoming 2002 Technology and E-commerce Survey Report. Expectedly, this amount rises dramatically as asset size increases, topping out at just under $1.5 million among credit unions with assets of $500 million or more.

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