J.P. Morgan Chase/Bank One Merger and Others Provide Opportunities for Your Credit Union

By Jon Haller
Director of Market Research
Credit Union National Association

If your credit union is like many others, you’re probably experiencing one or more of the following challenges and asking similar questions:

• Loan volume is down. Did your members put the brakes on their borrowing, or are they simply taking more of their loan business somewhere else? Why are they obtaining their loans through other providers?
• Your Internet banking and/or bill-payment services penetration levels aren’t growing as rapidly as you’d hoped. Why? Are more-attractive programs at your competitors costing you PFI members and/or pulling away your high-income members? Are your remote-banking channels meeting members’ needs as well as they could be?
• Nationally, the gap in member/customer satisfaction with their credit union/bank is shrinking. Is this true among your members?

Uncovering the answers to these questions, comparing your performance against your peers, and ultimately, making whatever adjustments are necessary will be the keys to improving your competitive position, attracting more of your members’ business, and drawing in more consumers who may be looking for a better alternative as a result of the impending J.P. Morgan Chase/Bank One, BofA/FleetBoston, and other mergers.

Keeping your fingers on the pulse of your membership has become more important than ever, and member surveys —as well as potential-member/nonmember surveys— can play an important role in growing your service-penetration levels, membership numbers, and bottom line.

But while a majority of credit unions have recognized the value that surveys provide, not all have bought into the concept. Just 58% of credit unions with assets of $20 million or more have conducted a member survey during the past four years, according to a recent survey by CUNA Research & Advisory Services —up only slightly from 56% in 2000.

While the range of information-collection methods have expanded over the past few years, tried-and-true paper- based mail surveys continue to dominate as credit unions’ survey tool of choice. Additionally, as might be expected, the likelihood of employing a particular survey method tends to rise as asset size increases. Roughly two-thirds of credit unions’ survey work is outsourced, with the remaining third relying on in-house staff and resources for their project.

Consumers, in general, and credit union members, in particular, no longer hesitate to "jump ship" to another provider if they feel their needs aren’t being met. This poses both a challenge to, and a major opportunity for, your credit union.

If your approach to research has been "can we afford to do a survey?," take a look at the current financial services landscape, and you may find yourself asking "can we afford not to do one?" If you’re accustomed to doing your surveys every two or more years, ask yourself if there are at least some issues that warrant annual measurement and attention.

And most importantly, regardless of whether you tap the expertise of an outside provider for your survey, or choose to do it yourself, (with a nod to Nike) "just do it."

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