Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Credit Unions - US - May 2011

This report builds on several previous Mintel studies, including Online Banks—U.S., February 2011; Online and Mobile Banking—U.S., November 2010; Retail Banking—U.S., October 2010; Deposit Accounts—U.S., July 2010; and U.S. and Canadian Credit Unions—U.S., May 2007. This report examines the trends and opportunities within the U.S. credit union industry. It also provides an overview of how credit unions and their products are being received by the U.S. consumer, and makes suggestions about how those consumers will look at those products in the future.

The following terms are also used in the report:

Apps Applications that can be downloaded and installed on cell phones.

Cloud Computing A system of internet-based applications and file storage, in which these applications are stored in the web "cloud" (rather than locally), where clients can access them from anywhere.

E-bill Short for electronic billing, enables billers to create and distribute digital bills to their customers instead of printing and mailing out paper bills, saving on paper and postage costs.

Electronic wallet Also known as an e-wallet or digital wallet, a service that allows internet users to store and use online shopping information to make electronic commerce transactions quickly and securely.

Mobile Banking Conducting banking activities using a mobile device such as a cell phone. This can be done by 1) sending the bank a text message, 2) using the bank’s mobile website, 3) using the banking phone app, or 4) any of the above.

Mobile Payments Using a mobile phone to pay for goods and services in lieu of a credit card.

Short Messages Service (SMS) or text messaging Electronic text messages on a wireless network, used primarily on phones and pagers; also known as "Sims."

Smartphones Phones with robust operating systems that allow for PC-like capabilities. One of the main features of these robust operating systems is the ability to add applications to the phone, whereas on regular phones the user can only use factory-installed applications.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Scope and Themes

      • What you need to know
        • Data sources
          • Consumer survey data
            • VMS
              • Abbreviations and terms
                • Terms
                  • Companies mentioned in this report
                  • Executive Summary

                    • Industry overview
                      • Innovation in the industry
                        • Marketing strategies – an overview
                          • Who banks where and why
                            • Credit union members versus bank customers
                            • Insights and Opportunities

                                • Key points
                                  • Get the word out: Credit unions are as safe as banks
                                    • More people are eligible to join a credit union than they think
                                      • Credit unions need to attract younger members: social media can help
                                      • Inspire Insights

                                          • Trend: “Moral Brands”
                                            • What's it about?
                                              • What we've seen
                                                • Specifics
                                                  • Implications
                                                  • Market Size and Forecast

                                                    • Key points
                                                      • Credit unions’ assets total less than $1 trillion
                                                        • Credit union history and nonprofit status
                                                          • Figure 1: Credit union industry statistics, 2006-10
                                                      • Competitive Context

                                                        • Key points
                                                          • Largest credit unions have a small share of market
                                                            • Figure 2: Top 10 credit unions by assets, September 2009 and September 2010
                                                            • Figure 3: Top 10 credit unions by deposits, September 2009 and September 2010
                                                          • Credit unions increase their market share versus banks in assets and deposits
                                                              • Figure 4: Credit unions versus banks, change in market share, 2008-10
                                                              • Figure 5: Credit unions versus banks, change in market size, 2008-10
                                                          • Segment Performance

                                                            • Key points
                                                              • Credit union net income rises on reduced interest costs, lower loan losses
                                                                  • Figure 6: Net income at credit unions and banks, 2006-10
                                                                  • Figure 7: ROA at credit unions and banks, 2006-10
                                                                • Challenges for 2011: Interest rate and concentration risk
                                                                  • Debit fee law may have big impact on credit unions
                                                                    • Viability of some credit unions threatened
                                                                    • Marketing Channels

                                                                      • Key points
                                                                        • More U.S. credit unions use social media campaign to attract Millennials
                                                                          • Differentiating credit unions from banks
                                                                            • Missouri credit union allows customers to tweet through online banking
                                                                            • Market Drivers

                                                                              • Key points
                                                                                • Stronger economy bodes well for credit unions and members
                                                                                    • Figure 8: U.S. unemployment rate, January 2009-March 2011
                                                                                  • CU members are beginning to spend again
                                                                                    • Figure 9: U.S. personal saving rate, January 2005-January 2011
                                                                                  • Member borrowing expected to pick up
                                                                                    • Figure 10: Residential mortgage debt outstanding, 2006-10
                                                                                    • Figure 11: Consumer credit outstanding, 2006-10
                                                                                • Leading Companies

                                                                                  • Key points
                                                                                    • Navy Federal Credit Union
                                                                                      • (North Carolina) State Employees' Credit Union
                                                                                        • Pentagon Federal Credit Union
                                                                                          • Boeing Employees Credit Union
                                                                                            • SchoolsFirst FCU, Santa Ana, Calif.
                                                                                              • Golden 1 Credit Union, Sacramento, Calif.
                                                                                                • Alliant Credit Union, Chicago
                                                                                                  • Security Service Federal Credit Union, San Antonio, Texas
                                                                                                    • American Airlines Federal Credit Union, Fort Worth, Texas
                                                                                                      • Suncoast Schools Federal Credit Union, Tampa, Fla.
                                                                                                      • Innovation and Innovators

                                                                                                        • Key points
                                                                                                          • PenFed teams with USAA to offer complementary financial products
                                                                                                            • PenFed introduces hassle-free online car-buying program
                                                                                                              • Navy Federal launches auto buying service that touts CU’s financing
                                                                                                                • Iowa tech start-up offers mobile phone payment app for CUs
                                                                                                                  • Mobile software enables CU members to “Cre8” instant personalized cards
                                                                                                                    • Utah CU to offer online electronic mortgage closings
                                                                                                                      • Prime Alliance, MetLife to provide reverse mortgages to CU members
                                                                                                                        • Maryland CU seeks rare conversion-to-thrift charter
                                                                                                                          • Long Island CU urges members to fight, not switch
                                                                                                                            • Alaska USA FCU allows California offices to use shared branching
                                                                                                                              • Save to Win contest generates accounts for Michigan Credit Unions
                                                                                                                              • Marketing Strategies

                                                                                                                                • Key points
                                                                                                                                  • Overview
                                                                                                                                    • Representative direct mail and email advertising
                                                                                                                                      • Navy Federal Platinum Card from Navy Federal Credit Union
                                                                                                                                        • Figure 12: Navy Federal direct mail ad, February 2011
                                                                                                                                      • Signature Loan from Weokie Credit Union, Oklahoma City, Okla.
                                                                                                                                        • Figure 13: Weokie Credit Union direct mail ad, February 2011
                                                                                                                                        • Figure 14: Affinity FCU direct mail ad, February 2011
                                                                                                                                      • Home Equity Loan from Credit Union of New Jersey
                                                                                                                                        • Figure 15: Credit Union of New Jersey direct mail ad, February 2011
                                                                                                                                      • Auto Refinance Loan from MidWest America Federal Credit Union, Fort Wayne, Ind.
                                                                                                                                        • Figure 16: Midwest America FCU direct mail ad, January 2011
                                                                                                                                      • Checking Account from Star One Credit Union, Sunnyvale, Calif.
                                                                                                                                        • Figure 17: Star One Credit Union direct mail ad, January 2011
                                                                                                                                      • Mortgage Loan from Pentagon Federal Credit Union
                                                                                                                                        • Figure 18: Pentagon Federal CU email ad, January 2011
                                                                                                                                      • EChecking from Western Federal Credit Union, Arkansas
                                                                                                                                        • Figure 19: Western Federal Credit Union direct mail ad, December 2010
                                                                                                                                      • Television advertising
                                                                                                                                          • Figure 20: National Credit Union Association television ad, 2010
                                                                                                                                          • Figure 21: Alabama Telco Credit Union television ad, 2010
                                                                                                                                          • Figure 22: C Plant FCU television ad, 2010
                                                                                                                                          • Figure 23: Cap Com FCU television ad, 2010
                                                                                                                                          • Figure 24: Roanoke Valley CU television ad, 2011
                                                                                                                                          • Figure 25: FM Financial CU television ad, 2010
                                                                                                                                      • The Consumer

                                                                                                                                        • Key points
                                                                                                                                          • Eighteen percent of respondents use a credit union
                                                                                                                                            • Figure 26: Primary banking institution, by gender, January 2011
                                                                                                                                            • Figure 27: Primary banking institution, by age, January 2011
                                                                                                                                            • Figure 28: Primary banking institution, by household income, January 2011
                                                                                                                                            • Figure 29: Primary banking institution, by race/Hispanic origin, January 2011
                                                                                                                                            • Figure 30: Primary banking institution, by census region, January 2011
                                                                                                                                          • Online is a close second to branches for transactions
                                                                                                                                            • Figure 31: Where banking transactions are conducted, by gender, January 2011
                                                                                                                                            • Figure 32: Where banking transactions are conducted, by age, January 2011
                                                                                                                                            • Figure 33: Where banking transactions are conducted, by income, January 2011
                                                                                                                                            • Figure 34: Where banking transactions are conducted, by race/Hispanic origin, January 2011
                                                                                                                                            • Figure 35: Where banking transactions are conducted, by census region, January 2011
                                                                                                                                            • Figure 36: Where banking transactions are conducted, by area, January 2011
                                                                                                                                            • Figure 37: Where banking transactions are conducted, by gender and income, January 2011
                                                                                                                                          • Checking accounts are the most popular product
                                                                                                                                            • Figure 38: types of banking products owned, by gender, January 2011
                                                                                                                                            • Figure 39: types of banking products owned, by age, January 2011
                                                                                                                                            • Figure 40: types of banking products owned, by income, January 2011
                                                                                                                                          • Checking, credit cards are most likely products to carry rewards
                                                                                                                                            • Figure 41: Incidence of rewards on banking products, by gender, January 2011
                                                                                                                                            • Figure 42: Incidence of rewards on banking products, by age, January 2011
                                                                                                                                            • Figure 43: Incidence of rewards on banking products, by income, January 2011
                                                                                                                                            • Figure 44: Incidence of rewards on banking products, by race or Hispanic origin, January 2011
                                                                                                                                            • Figure 45: Incidence of rewards on banking products, by area, January 2011
                                                                                                                                          • Young men, Hispanics most likely to switch to a credit union
                                                                                                                                              • Figure 46: Transferred account to credit union, by gender, January 2011
                                                                                                                                              • Figure 47: Transferred account to credit union, by age, January 2011
                                                                                                                                              • Figure 48: Transferred account to credit union, by gender and age, January 2011
                                                                                                                                              • Figure 49: Transferred account to credit union, by race and Hispanic origin, January 2011
                                                                                                                                              • Figure 50: Transferred account to credit union, by income and Hispanic origin, January 2011
                                                                                                                                              • Figure 51: Transferred account to credit union, by age and Hispanic origin, January 2011
                                                                                                                                            • Better rates attract new credit union customers
                                                                                                                                                • Figure 52: Reasons for transferring account to credit union, by gender, January 2011
                                                                                                                                              • Only 20% have switched banks recently, most have never switched
                                                                                                                                                • Figure 53: Frequency of switching financial institutions, by gender, January 2011
                                                                                                                                                • Figure 54: Frequency of switching financial institutions, by age, January 2011
                                                                                                                                                • Figure 55: Frequency of switching financial institutions, by race/Hispanic origin, January 2011
                                                                                                                                                • Figure 56: Frequency of switching financial institutions, by age and Hispanic origin, January 2011
                                                                                                                                              • Vast majority of respondents are satisfied with their bank or CU
                                                                                                                                                • Figure 57: Satisfaction with current bank or credit union, by gender, January 2011
                                                                                                                                                • Figure 58: Degree of satisfaction with current bank or credit union, by gender, January 2011
                                                                                                                                                • Figure 59: Satisfaction with current bank or credit union, by age, January 2011
                                                                                                                                                • Figure 60: Degree of satisfaction with current bank or credit union, by age, January 2011
                                                                                                                                                • Figure 61: Degree of satisfaction with current bank or credit union, by income, January 2011
                                                                                                                                                • Figure 62: Degree of satisfaction with current bank or credit union, by income, January 2011
                                                                                                                                              • Cause for concern: Less than half believe CUs are as safe as banks
                                                                                                                                                  • Figure 63: Attitudes about banks and credit unions, by gender, January 2011
                                                                                                                                                  • Figure 64: Attitudes about banks and credit unions, by age, January 2011
                                                                                                                                                  • Figure 65: Attitudes about banks and credit unions, by income, January 2011
                                                                                                                                                  • Figure 66: Attitudes about banks and credit unions, by race and Hispanic origin, January 2011
                                                                                                                                                  • Figure 67: Attitudes about banks and credit unions, by census region, January 2011
                                                                                                                                                • Banks and CUs get high marks for convenience, less for value
                                                                                                                                                    • Figure 68: Description of bank or credit union, by gender, January 2011
                                                                                                                                                    • Figure 69: Description of bank or credit union, by age, January 2011
                                                                                                                                                    • Figure 70: Description of bank or credit union, by income, January 2011
                                                                                                                                                • Custom Consumer Groups—Credit Unions vs. Banks

                                                                                                                                                  • Key points
                                                                                                                                                    • Credit union customers are much more satisfied than big-bank customers
                                                                                                                                                        • Figure 71: Satisfaction with bank or credit union, by type of institution, January 2011
                                                                                                                                                        • Figure 72: Satisfaction with bank or credit union, by type of institution, January 2011
                                                                                                                                                      • Credit unions outscore banks in customer service, value
                                                                                                                                                          • Figure 73: Description of bank or credit union, by type of institution, January 2011
                                                                                                                                                        • Credit unions are more trusted than banks, but their safety is questioned
                                                                                                                                                            • Figure 74: Attitudes about banks and credit unions, by type of institution, January 2011
                                                                                                                                                          • Credit unions boast strong share in credit cards, auto and personal loans
                                                                                                                                                              • Figure 75: Products at primary bank or credit union, by type of institution, January 2011
                                                                                                                                                            • Fewer credit union products carry rewards
                                                                                                                                                                • Figure 76: Products with rewards at primary bank or credit union, by type of institution, January 2011
                                                                                                                                                              • Online banking is more popular at credit unions than at banks
                                                                                                                                                                  • Figure 77: Preferred method of conducting transactions, by type of institution, January 2011
                                                                                                                                                              • Cluster Analysis

                                                                                                                                                                  • Cluster 1: Credit Union Contents
                                                                                                                                                                    • Characteristics
                                                                                                                                                                      • Demographics
                                                                                                                                                                        • Opportunity
                                                                                                                                                                          • Cluster 2: Regional Intermediates
                                                                                                                                                                            • Characteristics
                                                                                                                                                                              • Demographics
                                                                                                                                                                                • Opportunity
                                                                                                                                                                                  • Cluster 3: Unhappy Big Bankers
                                                                                                                                                                                    • Characteristics
                                                                                                                                                                                      • Demographics
                                                                                                                                                                                        • Opportunity
                                                                                                                                                                                          • Characteristic tables
                                                                                                                                                                                            • Figure 78: Bank account clusters, January 2011
                                                                                                                                                                                            • Figure 79: Type of institution for primary bank, by bank account clusters, January 2011
                                                                                                                                                                                            • Figure 80: Where transactions are conducted, by bank account clusters, January 2011
                                                                                                                                                                                            • Figure 81: Satisfaction with primary bank or credit union, by bank account clusters, January 2011
                                                                                                                                                                                            • Figure 82: Attributes used to describe primary bank or credit union, by bank account clusters, January 2011
                                                                                                                                                                                            • Figure 83: Number of times switched primary bank or credit union in last five years, by bank account clusters, January 2011
                                                                                                                                                                                            • Figure 84: Attitudes about banks and credit unions, by bank account clusters, January 2011
                                                                                                                                                                                          • Demographic tables
                                                                                                                                                                                            • Figure 85: Bank account clusters, by gender, January 2011
                                                                                                                                                                                            • Figure 86: Bank account clusters, by age, January 2011
                                                                                                                                                                                            • Figure 87: Bank account clusters, by household income, January 2011
                                                                                                                                                                                            • Figure 88: Bank account clusters, by race, January 2011
                                                                                                                                                                                            • Figure 89: Bank account clusters, by Hispanic origin, January 2011
                                                                                                                                                                                          • Cluster methodology
                                                                                                                                                                                          • Appendix—Trade Associations

                                                                                                                                                                                            Companies Covered

                                                                                                                                                                                            • Bank of America Corporation
                                                                                                                                                                                            • Consumer Bankers Association
                                                                                                                                                                                            • Fannie Mae
                                                                                                                                                                                            • Federal Deposit Insurance Corporation
                                                                                                                                                                                            • Independent Community Bankers of America
                                                                                                                                                                                            • JPMorgan Chase & Co
                                                                                                                                                                                            • Mortgage Bankers Association (MBA)
                                                                                                                                                                                            • National Association Of Federal Credit Unions
                                                                                                                                                                                            • National Credit Union Administration
                                                                                                                                                                                            • Navy Federal Credit Union
                                                                                                                                                                                            • State Employees' Credit Union

                                                                                                                                                                                            Credit Unions - US - May 2011

                                                                                                                                                                                            £2,684.63 (Excl.Tax)