Higher Savings Mean LowerExpenses

MADISON, Wis. - (06/15/04) -- Credit union can reduce theiroperating costs by focusing on larger savings accounts, accordingto a new study issued Monday by the Filene Research Institute. Thestudy, 'Building Savings-Per-Member at Credit Unions,' found thatby increasing savings per member, credit union can lower theiroperating cost per asset ratio. The ratio declines from 5.12% forsavings per member under $2,500, to 1.23% for savings per memberover $15,000. The authors of the study analyzed the institutionaluse and financial and demographic characteristics of various groupsand developed marketing implications for credit unions.