WASHINGTON – Annual investment in technology adoption and upgrades by the nation’s credit unions will top $2 billion in 2008, according to Callahan & Associates.
Despite the current sagging economy, two-thirds of credit unions plan to increase their spending on technology in 2009, Callahan said.
“Despite a tepid economy and tightening margins, credit unions continue to launch significant technology enhancements,” said Jay Johnson, Executive Vice President at Callahan. “One of the strategic strengths of credit unions is their ability to stay the course for the long-term benefit of their members. By consistently investing in technology that will not only increase efficiencies, but improve service to existing members, and aid in bringing new members on-board, they are strengthening their long-term value proposition.”
Reflecting a business landscape impacted by hurricanes, wildfires, floods, and cyber hacking, investments in business continuity and security were the most frequently identified categories of budgeted technology in 2008. Backup operations for member services were identified as a leading initiative by more than half of respondents.
On another key front, many respondents are investing in core member-facing technologies. Forty-eight percent of credit unions indicated they are undertaking a website redesign in 2008, while 46% reported budgeting investments in online banking during the year. Expanding member self-service channels was a focus for many as well, with 50% of respondents indicating they will install new ATMs in 2008 and 12% planning kiosk deployments during the year.
A total of 205 credit unions representing $124 billion in assets responded to the 2008 survey, Callahan said. Accounting for 16% of industry assets at year-end 2007, this group of credit unions had an average asset size of $606 million and a median asset size of $197 million.
