Callahan & Associates Identifies Link Between Tech Adoption and Growth at Small Credit Unions

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Callahan and Associates' latest infographic shows a correlation between technology adoption and improved performance for credit unions with less than $50 million in assets.

This analysis shows that it isn’t the size of the credit union, but their commitment to serve their members which is fueling success.

A newly released infographic from Callahan & Associates analyzing the performance of the 21 most tech-savvy credit unions in the United States with less than $50 million in assets shows a strong correlation between technology adoption and improved performance.

As of year-end 2013, the credit unions identified in the analysis are outpacing the industry average for similarly sized credit unions in share draft, credit card and auto loan penetration growth by 6.5, 3.3 and 3.8 percent, respectively. Additionally, these tech-savvy credit unions exceed the industry average share growth rate by 2 percent and loan growth rate by 1.3 percent.

Credit unions with less than $50 million in assets had to offer a full suite of technology services in order to be included in the report. These include mobile banking, remote deposit capture, and online applications for membership, share accounts and loans.

“It’s impressive how these credit unions have championed technology, and their investment is certainly paying off,” said Jon Jeffreys, Managing Partner at Callahan & Associates. “The financial services game has changed, and members are demanding quick and easy access to their money. This analysis shows that it isn’t the size of the credit union, but their commitment to serve their members which is fueling success.”

These credit unions are also benefiting from significantly higher member relationship balances than those credit unions of similar asset size without the full range of tech offerings. The average member relationship at the small tech-savvy credit unions is $10,439 compared with $8,966 for other credit unions under $50 million.

The featured credit unions are even outclassing larger financial cooperatives in certain key areas. For instance, while the small, tech-savvy credit unions included in the analysis are enjoying an average 3.6 percent 5-year compounded annual growth rate (CAGR) in loans, credit unions with assets between $100-$250 million can only claim a 2.5 percent 5-year CAGR in loans.

Two credit unions whose performance stood out in Callahan’s analysis are Gallup Federal Credit Union (Omaha, NE) and Roswell Community Credit Union (Roswell, NM). Gallup FCU is enjoying a 26.7 percent spike in loan growth and a 7.1 percent increase in share growth. Meanwhile, Roswell CCU is experiencing 14.9 percent and 12.6 percent growth in the same categories while also boasting a 14.1 percent increase in member growth rate.

To view the full infographic, including the list of all 21 credit unions featured, please visit CreditUnions.com.

About Callahan & Associates
Callahan & Associates is dedicated to helping the credit union industry thrive. Our team of experts provides leading research, analytics, networking and consulting solutions. More than 4,000 credit unions and industry suppliers rely on us for the latest data, actionable insights and benchmarking tools to develop their unique competitive advantages and achieve their strategic goals. Our nearly 30 year history has enabled us to build an unparalleled knowledge transfer consortium which connects the industry’s best minds. To learn how you can join Callahan’s network, please visit http://www.callahan.com.

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Salvador Lopez
Callahan & Associates
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