The report, "The Evolution of the U.S. Credit Union Market," by Aite Group, analyzes the current credit union market, and credit unions' changing strategies and product offerings. Aite Group surveyed 101 credit unions with more than $100 million in assets.
While credit unions reported their challenges, 33% of those surveyed also indicated that they are planning charter conversions to savings institutions, thrifts or banks. Head-to-head competition with banks, increasing demand for more sophisticated portfolios from members and other factors have caused credit unions to change their strategies, the report noted.
New market conditions are forcing credit unions to abandon their strict membership guidelines and competitive strategies based primarily on price. Surviving today's competitive marketplace requires flexibility and "in the case of credit unions, it also sometimes means expanding well beyond their roots," said survey author Christine Barry.
The survey is part of a larger study, in which Aite studied 201 U.S. credit unions. (CU New Now)