HARTFORD, Conn. -- The Connecticut Department of Banking has compiled the results of its year-end 2005 survey of state-chartered credit unions it conducted to determine what types of fee-producing services are being provided to consumers. The results offer an interesting insight into the revenue producing services being provided to members through credit unions and their subsidiaries.
Among the findings of the survey in which all state-chartered CUs in the state participated, CUs all together offered a total of 46 various revenue-producing services to their members. Fifteen of those revenue-producing services were offered through subsidiaries.
Of the services offered, consumer loans were the most popular and were provided by 75% of the CUs. Another three-quarters indicated they offer consumer lending/personal loans--a 10% increase from the 2004 survey--while 61% offered home equity loans. That figure is down 10% from 2004.
In addition, the number of CUs offering signature loans decreased 28%, from 29 in 2004 to 21 in 2005.
The Department of Banking did a similar survey of state-chartered banks, and it showed those financials offered 76 different revenue-producing services to consumers. Of those services, the ones most commonly offered were: wire transfers, money orders/cashier checks, safe deposit boxes, home equity loans, consumer lending, commercial construction lending and residential construction lending. About 85% of institutions participating in the survey said they offered these services.
Another finding of the survey showed that most services, except for mutual funds and insurance products, continue to be offered directly by banks rather than by holding companies or subsidiaries.
In another related survey, the Connecticut Department of Banking conducted an electronic credit union services survey for year-end 2005. Those results showed: 50% of responding CUs had an Internet site; every CU Web site offered deposit and loan rate information, and a majority offered new account information, loan history, account inquiries and links to external sites; approximately 80% of the sites offered loan application downloads; slightly less than half of the CUs offered telephone banking.
In addition, 46% of the responding CUs indicated they provided debit cards to their members. --egbarr06@bellsouth.net
