A research and development firm that aims at helping community financial institutions better compete with the largest banks argues community banks and credit unions waste energy competing against each other.

Don Shafer, CEO of Austin, Texas, based BancVue contends that while credit unions and community banks have been competing against each other, they have each been losing market share to the biggest national banks.

"In 1994, only 15 short years ago, community financial institutions, banks and credit unions, had roughly 70% of the market for financial services and the biggest banks had roughly 30%." Shafer said. "Now it's reversed, the largest banks have roughly 70% of the market and community financial institutions have lost out."

BancVue, which Shafer described as a research and development firm, specializes in doing the market research and product development that will allow community banks and credit unions to compete effectively with banks.

Something the firm calls "rewards checking" is a recent example of their products. Rewards checking accounts carry a significantly higher interest rate for members or customers who agree to deposit their paychecks directly if possible, use their debit cards at least ten times per month, log onto to online banking once a month and use e-statements instead of paper statements.