A focus group made up of representatives from 10 largebusinesses in varying industries said credit unions just don't havethe products or technical expertise they need from a financialinstitution.

The focus group was coordinated by a market research firm forCU Business Group in Portland, Ore., the business services CUSOsaid.

The group consisted of owners, CEOs, and accountants atbusinesses with annual sales ranging from $1 million to $10million.

Participants were asked about their relationship with theircurrent financial institution, the products and services that weremost important to them, and their perception of credit unions.

Some of the respondents said credit unions haven't marketedtheir business services to them, while they get contacted by largerbanks on a regular basis, according to CUBG.

“Just call me and take me to lunch,” stated one participant. “Inever have been contacted by a credit union so why would I evenconsider them?”

Overall, participants shared that technological sophisticationand expertise were key, almost unanimously agreeing that onlinebanking was the product or service that was most important to them,CUBG said.

Businesses use this for everything from checking balances andtransferring funds to remote deposit capture, cash management andACH origination.

The focus group participants said another important factor inchoosing their bank was branch locations so that their employeescan have access to services.

While all agreed that credit unions were “great for personal,friendly service,” they can't see credit unions meeting theirbusiness needs.

One participant specifically mentioned that using a nationalbank makes his business seem larger and more sophisticated, whileusing a credit union would make his clients think he was a smallerorganization, according to CUBG.

In particular, he shared that he didn't believe credit unionscould handle his international banking needs.

“It is sometimes difficult to look in the mirror, but alwaysbeneficial,” Ted Rosen, president of Expert Business DevelopmentLLC, a Bala Cynwyd, Pa.-based financial service managementconsultation firm. He spoke to attendees at CUBG's recent BusinessServices Conference after the focus group's video was viewed.

Larry Middleman, CUBG president/CEO, said the goal ofcommissioning the focus group was to gather important feedback onbanks and credit unions from larger, more sophisticatedbusinesses.

“This is very eye-opening. Many credit unions are consideringexpanded business services and this session (provided) excellentdirection for what is needed to serve larger businesses,” Middlemansaid.

He added, “These will be some of the most profitablerelationships at the credit union and it is imperative that we knowwhat it takes to win them over.”

Middleman said credit unions interested in viewing thevideo-taped focus group session, can contact CUBG.