Credit union members more apt to use their credit union's credit card products

ST. PETERSBURG, Fla. -Sixty-nine percent of credit union members prefer their credit union's credit card over other non-credit union cards according to Card Services for Credit Unions' 2000 cardholder survey results. "This year was the highest level of cardholder and credit union satisfaction in the five years we've been doing the survey," said Bob Hackney, CEO of CSCU. Speaking at CSCU's annual meeting, which was held in St. Petersburg, Fla. from April 13-16, Hackney said 31% of members surveyed said they prefer their credit union's credit card because of the low or $0 annual fee; 24% cited a lower interest rate; 20% said loyalty to the credit union; 10% cited value enhancements; 8% said customer service; and 7% cited their credit limit. Interestingly the most popular reason among those respondents who do not prefer their credit union's credit card had to do with interest rates. Thirty-four percent of those who did not prefer their credit union card said they preferred the lower interest rate of another card. Another 25% said they preferred the value enhancements of another card. Key note speaker Rory Rowland told attendees to pay close attention to the e-commerce related results in CSCU's 2000 cardholder survey. He said the Internet has forced a dramatic change in American society that's going to forever change the way credit unions serve members. Rowland recommended that credit unions start collecting their members' e-mail addresses. "There's no more effective way to make a relationship then through constant connection via e-mail," said Rowland, who told a story of a state representative he will never forget because she sent him daily e-mail updates on issues. He said one red flag from the CSCU survey is that 25% of respondents said they utilize online banking. That should concern credit unions, said Rowland, because the national average for member penetration for a credit union's Internet banking solution is around 11%. Rowland said the other 10% or so of members are getting Internet banking service somewhere else. Rowland noted that while credit unions likely serve a lot of casual Web surfers there is a growing contingent of members that are using the Internet to find homes and obtain mortgages; and find cars and then find financing for the cars. He said credit unions should do a better job of surveying their members to find out what's on their e-commerce wish list. USA Today typically only surveys 1,500 people for its popular front-page stats box, said Rowland. He said credit unions shouldn't be fooled into thinking they need to survey every member to get a feel for what they're looking for in Web services. Rowland said the CSCU survey showed that balance inquiry, bill payment and online investing are the three most desired Web products among members. About 97% of CSCU CUs offering Internet banking said they offer balance inquiry; 63% offer bill payment; but only 14% are offering online investing. -pgentile@cutimes.com