Developing market driven strategies for credit union growth and survival

An effort was made to help credit unions develop operating plans and directions for survival and growth with the challenges of deregulation, demographic changes, and customer loyalty erosion. A survey was conducted to ascertain services use patterns over various age and income categories for credit union members and nonmembers. With a maximum of 3 callbacks, 263 responses from members and 114 responses from nonmembers were obtained. Credit unions were perceived as strong in attracting members through low interest rates on loans and high interest rates on savings. They were viewed as less friendly with less personal service than banks. By income level, members and nonmembers differed significantly statistically in use of: 1. payroll deductions/direct deposit, 2. drive-up banking, and 3. tax counseling services. By age, group usage differences were found for: 1. payroll deduction/direct deposit, 2. drive-up banking, 3. evening/Saturday banking, and 4. credit lines.