CO-OP and Filene Publish Report that Shows How to Gain a Primary Financial Relationship with Members
Consumer preference for a single provider and addressing “financial fragility” as a source of dissatisfaction are among the key findings of a new study suggesting credit unions are strongly positioned in the current marketplace.
To help credit union executives, CO-OP Financial Services commissioned Filene Research Institute to study the socioeconomic and technological changes expected to have the greatest impact on consumer behaviors and preferences. The study, titled “Payments, Personal Financial Management and Prospects for Credit Union Growth” is now available here.
Filene’s research and recommendations are based on two nationally representative surveys of U.S. consumers conducted in late May, well into the “new normal” of COVID-19. Many of the key takeaways cited by the report’s authors indicate a strong potential for stickiness among today’s financial consumers. The takeaways also highlighted a vast opportunity among people often ignored by major banks.… Read more
PSCU, the nation’s premier payments credit union service organization, has updated its weekly transaction analysis from its Owner credit union members on a same-store basis to identify the impact of COVID-19 on consumer spending and shopping trends. An infographic is also attached.
To provide relevant updates on market performance, experts from PSCU’s Advisors Plus and Data & Analytics teams today released year-over-year weekly performance data trends. In this week’s installment, PSCU compares the 37th week of the year (the week ending September 13, 2020 compared to the week ending September 15, 2019).
… Read more
- Overall card payment volume growth rates decelerated in Week 37.
- Debit card spend was up 16.4%, in line with the four-week average of +16.9%. Transactions were up 2.8% and have been positive for eleven consecutive weeks.
- Credit card spend was up 0.9%, which is lower than the four-week average of +2.3%. Transactions were down 4.1%, below the four-week average of -3%.
CO-OP Financial Services Reports on Consumer Credit and Debit Spending During August
The waning days of summer saw a continuation of the credit and debit trends of recent months. Shifts in consumer behavior were comparatively modest between July and August, as consumers solidified their purchasing routines for the post-COVID “new normal.” Yet, as the leaves begin to turn caution signs are ahead, signaling that much can change in the coming months.
The latest analysis by the CO-OP SmartGrowth Team of CO-OP Credit and Debit portfolio data shows that debit regained its momentum in August, with the number of transactions down just 3% year-over-year. Debit transaction amounts were up 10%, driving a strong net interchange increase of 12%.
Credit posted a similar story in August, with transaction counts up by 4%, transaction amounts up 11% and interchange up by 7% year-over-year.
Here are the category-level spending trends we are seeing for the month of August (data comparing August 1-31, 2020, with August 1-31, 2019):
Online Bookstores (Amazon)
Transaction Volume (#):
Credit: Up 49%.… Read more
Xtend, Inc., the Grand Rapids, Michigan-based multi-owned cooperative CUSO, announced that it has added another credit union owner. RVA Financial (10K members, $72M assets), which is based in Richmond, VA, will join the group of 80 owners who each share equal parts of ownership in Xtend.
“RVA is an active client, user and advocator for our CUSO’s services,” states Liz Winninger, Xtend’s President/CEO. “We are very happy to have them join our ownership base as an active client, and now owner who can add to our ownership voice.”
About Xtend, Inc.
Xtend, Inc. is a 100% credit union-owned CUSO formed in 2002 with headquarters in Grand Rapids, Michigan. Xtend provides a wide array of managerial, operational, marketing, technical planning and consulting services for credit unions of all sizes. In short, Xtend is an aggregation point for shared resources that allows credit unions to deliver products and services more cost-effectively. Their strategic offerings include bookkeeping services, member contact services, back-office mortgage services, partnered liquidity opportunities, shared branching, and payment processing services.… Read more