The Bankwatch

Tracking the consumer evolution of financial services

Archive for the ‘credit unions’ Category

Payments, interchange, competition and … … Credit Unions?

I sense there are big changes afoot in the payments industry in Canada.  Translated that could mean changes in pricing, which in turn would mean changes for consumers.  Those changes might be positive or negative, but either way are enormously significant for Banks. 

Interac seeks shift to for-profit status

Mr. O’Connell fears Interac risks falling behind as the industry rapidly innovates. There are already products, such as MasterCard’s “tap & go” PayPass, that he would like Interac to be keeping up with. “The payments market is evolving every day,” he said. “It’s not just the U.S.-based credit card companies. You have PayPal, you have a number of unique payment companies in the marketplace, a number of new technologies. Look at mobile payments and its evolution in other countries around the world.

“Canada needs to ensure we can keep up and innovate in those areas,” he added

Payments revenues account for 30% +/- of payment related revenue.  While interest on cards is a big revenue source, interchange is the hidden secret of revenue, and the one component that is at risk.

This presentation is just terrific.  Deloitte are on fire these days, and this deck is no exception.  The data and breadth of the study is enormous, and anyone in Canadian payments needs to read this.  Statistics include how Banks make money from payments, and there is data on new competitors. 

However what strikes me the most is the source;  why am I learning about payments from the Credit Unions?  This is symptomatic of the problem that Banks in Canada <everywhere> have.  The whole “if we don’t talk about it, no-one will challenge us’ mindset is ridiculous.  Go Credit Unions, and thank you for making this kind of information available. 

Credit Union Central – Payments

This site is about our member services, education and training, government relations services. It explains our collective value to everyday Canadians who believe in a better way to achieve financial well-being. A warm welcome to all who visit…


Written by Colin Henderson

September 8, 2008 at 23:40

Posted in credit unions, Payments

Young and Free Alberta | Commonwealth CU

Took another look at Commonwealth CU site, Young and Free Alberta. [hat tip] This is a highly novel and fresh approach top finding and retaining new customers. It is novel because they have managed to integrate the bank account with what is primarily the social site.

The site and the products are built around people starting in financial life, and includes credit cards and student cards designed for them.

Young & Free Account

If you are between 17 and 25 years of age, you qualify! No fine print; no exceptions. Fill out the form below and we’ll contact you to get you set up, or you can visit any of our branches to open an account.

Written by Colin Henderson

August 11, 2008 at 11:23

Posted in credit unions

America’s largest Credit Unions

The largest Credit Unions in the United States, by Assets and membership.

The top 50 U.S. Credit Unions

In total assets, these top 50 credit unions account for $219 billion of the $805 billion in U.S. credit unions. In members, the top 50 account for 18 million of the 89 million memberships.

Here are the top three for each category.

Top 50 by Assets

  1. Navy Federal Credit Union, Merrifield, VA. $35.3 billion in assets.
  2. State Employees Credit Union, Raleigh, NC. $15.9 billion in assets.
  3. Pentagon Federal Credit Unio, Alexandria, VA. $11.9 billion in assets.

Top 50 by Membership

  1. Navy Federal Credit Union, Merrifield, VA. 3,050,981 members.
  2. State Employees Credit Union, Raleigh, NC. 1,446,228 members.
  3. Pentagon Federal Credit Union, Alexandria, VA. 801,878 members.

Written by Colin Henderson

August 6, 2008 at 09:32

Posted in credit unions

Large Scale Collaboration | Credit Union innovation

Large scale collaboration, as an alternative to mergers to allow Credit Unions to achieve scale. No details yet however.

CU Brand Blog

Large-scale collaboration is a legitimate alternative solution. It allows credit unions to remain smaller and independent, yet allows these credit unions to share, cooperate and, most importantly, innovate. If you are not involved in collaborating with other like-minded credit unions, it’s time to get started.

Written by Colin Henderson

July 16, 2008 at 08:31

Posted in credit unions

%d bloggers like this: