Abstract
Canadian and U.S credit unions have always experienced unique challenges and opportunities when compared to other financial services providers. This report looks at the current state of the credit union sector and the competitive landscape, including:
- Historical trends that continue to have an impact on credit unions
- Factors driving deposit and loan growth
- Regulatory issues and their likely outcome
- Potential future scenarios for the sector and the likelihood of their development
This report contains an overview of the entire market, citing developing trends, followed by a detailed breakdown of specific market drivers. Understand what motivates change and how consumers feel about different incentives and marketing strategies. Distinguish behavior in different life stages and lifestyles. Target consumers within specific regions and demographic groups. You' ll have a competitive edge when you understand consumers through this exhaustive Mintel report.
Table of Contents
- Scope and Themes
- What you need to know
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Canadian credit union statistics, year-end 2006
- U.S. credit union statistics, year-end 2006
- Credit union marketing--examples
- Targeting Hispanics
- Securitization
- Other trends
- Online and word of mouth strategies
- The credit union consumer
- Future trends
- Overview of the Credit Union Sector
- A bit of history
- Credit unions--an inadvertent advantage
- Market trends
- Small business lending
- Small business entrepreneurs
- The credit union difference
- So why should consumers use credit unions?
- Figure 1: Credit card pricing--credit unions versus banks, 2007
- Demographic Market Drivers
- Canada--age demographics
- Figure 2: Median age of the Canadian population, 1921-2004
- Figure 3: Frequency respondents have changed banks in last five years,
by age, December 2006
- The shortage of peak borrowers in both Canada and the U.S.
- Figure 4: U.S. credit union savings versus loans, 2006 and 2007
- Figure 5: U.S. households shift in financial asset mix, 1984 and 2004
- Figure 6: Canadian credit unions--income from traditional sources,
1995-2003
- Economic Market Drivers
- Figure 7: New single-family houses for sale--U.S., 1963-2006
- Figure 8: Existing single-family home sales--U.S., 1999-2006
- Figure 9: National Association of Realtors' median sales price, existing
single-family homes, 1968-2006
- Figure 10: Mortgage loan purchase composite index--U.S., 2002-06
- Technological Market Drivers
- Figure 11: Percent of all respondents who use the Internet, year end
2000--April 2006
- Canada--technological market drivers
- Figure 12: Canadians' primary methods of banking, 2005
- Figure 13: Potential steps to increase trust and protect
privacy--Canada, 2005
- Figure 14: Reasons for adult home users to go online, 2005
- The U.S.--the rise of the machine
- Electronic banking/technology
- Technological developments--budgeting
- The ' electronic member' --building relationships
- Are there any financial institutions that have unique or very individual
online experiences?
- Market Drivers--Focus on Hispanics
- Targeting Hispanics
- Figure 15: U.S. Hispanic population and projections, 1950-2050
- Figure 16: Hispanic buying power, 1989-2004
- Micro-financing and Hispanics
- Figure 17: ACCION' s partners*, 2006 statistics
- Figure 18: U. S. Hispanic firms, by paid employee, 2002
- Hispanics and education
- How do we do it?
- An actionable plan for credit unions and the Hispanic market
- Financial product development
- A payday product
- Technology loans
- Remittances
- Figure 19: Volume of remittances distributed by credit unions in six
countries, Q3 2001-Q4 2003
- Figure 20: Uses of remittances--Central America and Mexico--IDB/MIF
Central America survey, 2003
- Figure 21: Remittance cost considerations for credit unions, 2003
- Regulatory Issues
- Canadian regulatory issues
- Canadian and U.S. regulatory differences
- Regulatory environment--field of membership restrictions
- The progressive part of the country
- The not so progressive parts of the country
- Basel II--capital requirements
- Figure 22: Capital ratios of banks and credit unions in the U.S.,
1980-2005
- Securitization
- Canadian credit union securitization
- Figure 23: Canadian credit union assets in securitized issuance, January
2007
- U.S. credit union securitization
- Overall Market Size and Growth
- Market size
- Canadian credit unions
- Figure 24: Canadian credit unions at a glance, 2007
- Figure 25: The Canadian credit union system--market tiers, 2006
- U.S. credit unions
- Figure 26: U.S. credit union facts at a glance, 2004
- Figure 27: U.S. credit union market tiers, 2005
- A decreasing number of credit unions--with a growing membership
- Figure 28: Number of U.S. credit unions, 1997-2005
- Figure 29: National credit union membership trend, 2001-06
- Canadian credit unions
- Figure 30: Number of credit unions in Canada, 1987-2005
- Figure 31: U.S. credit unions total assets, 2001-06
- Figure 32: U.S. credit union return on assets, 2001-06
- Figure 33: Canadian credit unions' return on equity, 2000-03
- Figure 34: U.S. credit unions' ratio of delinquent loans to total loans,
2001-06
- U.S. credit union loan growth
- Indirect lending
- One example--indirect lending in Ohio
- Figure 35: U.S. credit unions' total loans (in $ millions), 2001-06
- Figure 36: U.S. credit union loan growth trends, 2003-06
- Indirect lending--after the growth is gone
- Figure 37: U.S. credit unions' total value of loans, 2001-06
- Figure 38: U.S. credit unions' total loan growth rate, 2001-06
- Deposit growth
- Figure 39: U.S. credit unions' total deposits, by value, 2001-06
- Figure 40: U.S. credit unions' total deposits, percentage growth, 2001-06
- Figure 41: Growth in U.S. credit unions' savings and assets, 2001-06
- Figure 42: Credit union savings growth rate--percent change over
previous year, 2005-07
- Figure 43: U.S. credit unions' total surplus funds, 2005 and 2006
- Canadian credit union growth
- Figure 44: Canadian credit unions' comparative six-month growth rates,
Q2 2004-Q2 2006
- Market Share and Segmentation
- Canadian credit unions--market share rankings
- Figure 45: Canadian financial institution market share, by assets, 2005
- Figure 46: Number of credit unions in Canada, 1987-2005
- Figure 47: Canadian credit union ranking, by quarterly revenue, 2005
- Figure 48: Canadian market share, by domestic assets, deposits, consumer
credit & mortgages, 2006
- Figure 49: Canadian credit union income from traditional sources,
1995-2003
- Figure 50: Top ten Canadian credit unions, by asset size, Q4 2005-Q2 2006
- U.S. credit unions
- Loan growth performance by segment
- Figure 51: Key year-end performance results, 2006
- Figure 52: Top 20 U.S. credit unions, by loan growth--greater than $500
million, December 2006
- Figure 53: Top 20 U.S. credit unions, by loan growth--greater than $100
million to $500 million, December 2006
- Figure 54: Top 20 U.S. credit unions, by loan growth--greater than $50
million to $100 million, December 2006
- Figure 55: Top 20 U.S. credit unions, by loan growth--greater than $10
million to $50 million, December 2006
- Figure 56: Top 20 U.S. credit unions, by loan growth--greater than $2
million to $10 million, December 2006
- Figure 57: Top 20 U.S. credit unions, by loan growth--less than $2
million, December 2006
- U.S. credit union market segmentation by asset size
- Figure 58: U.S. credit union distribution, by asset size, 2005
- Figure 59: Top 20 U.S. credit unions, by assets, 2005 (1)
- Figure 60: Top ten credit unions, by number of members in 2005
- Figure 61: Top ten credit unions, by number of employees in 2005
- Canadian and U.S. competitive landscape
- Advertising and Promotion
- Responding to customers
- Marketing for growth
- Customer surveys--one viewpoint
- Customer surveys--another viewpoint
- Customer surveys--an example
- Demographic and psychographic marketing
- Marketing strategies--targeting the Hispanic market
- A credit union opportunity
- Figure 62: Hispanic survey--which language do you use for Internet
marketing programs specifically geared to target Hispanics?
- Internet advertising and search engine optimization
- Figure 63: U.S. online searches, by engine, February and March 2007
- Word-of-mouth marketing
- The U.S. Consumer
- Summary highlights of consumer survey
- Membership
- Figure 64: Credit union membership and/or eligibility, by gender and
age, April 2007
- Figure 65: Credit union membership and/or eligibility, by income, April
2007
- Figure 66: Credit union membership and/or eligibility, by
race/ethnicity, April 2007
- Figure 67: Credit union membership and/or eligibility, by employment
status, April 2007
- Credit unions as primary provider
- Figure 68: Credit unions as primary provider, by gender, April 2007
- Figure 69: Credit unions as primary provider, by age, April 2007
- Figure 70: Credit unions as primary provider, by income, April 2007
- Products provided by credit unions
- Figure 71: Financial products owned by credit union clients and/or
credit union-eligible clients at a credit union, overall, April 2007
- Figure 72: Financial products owned by credit union clients and/or
credit union-eligible clients at a credit union, by age, April 2007
- Figure 73: Financial products owned by credit union clients and/or
credit union-eligible clients at a credit union, by Hispanic/non-Hispanic,
April 2007
- Figure 74: Financial products owned by credit union clients and/or
credit union-eligible clients at a credit union, by region, April 2007
- Figure 75: Financial products owned by credit union clients and/or
credit union-eligible clients, where products are owned, overall, April 2007
- Figure 76: Advantages of using a credit union for a loan(s) and/or
credit card(s), April 2007
- Figure 77: Advantages of using a credit union for a loan(s) and/or
credit card(s), by age, April 2007
- Figure 78: Advantages of using a credit union for a loan(s) and/or
credit card(s), by Hispanic and non-Hispanic, April 2007
- Figure 79: Advantages of using a credit union for
savings/checking/investments, by gender, April 2007
- Figure 80: Advantages of using a credit union for
savings/checking/investments, by Hispanic/non-Hispanic, April 2007
- Are customers feeling valued?
- Figure 81: Perceptions of retention efforts by financial institutions,
April 2007
- Figure 82: Perceptions of retention efforts by financial institutions,
by age, April 2007
- Figure 83: Perceptions of retention efforts by financial institutions,
by income, April 2007
- Joining the credit union "club"
- Figure 84: Importance of links to community, work, or other groups, by
gender, April 2007
- Figure 85: Importance of links to community, work, or other groups, by
Hispanic/non-Hispanic, April 2007
- Future and Forecast
- Future trends
- The future couldn' t be brighter
- Revolutionary change?
- A checklist for revolutionary change
- Market forecast
- Credit union assets
- Figure 86: Forecast of total U.S. credit union assets, at current and
constant prices, 2006-11
- Figure 87: Forecast of credit union assets, at current and constant
prices, 2006-11
- Forecast factors
- Appendix: Trade Associations
- Credit Union Organizations
- State Credit Union leagues
- Canada trade associations
- Appendix: Advertising and Promotion
- Figure 88: Navy Federal Credit Union mailing, September 2006
- Figure 89: CUNA Mutual Insurance Company/Hartford Federal Credit Union
mailing, April 2007
- Figure 90: AM Federal Credit Union/Liberty Mutual auto insurance
mailing, April 2007
- Figure 91: SCE Credit Union Premier Money Market Account mailing,
October 2006
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