BERKELEY, Calif.—The most “innovative” credit union in the U.S. is $2.6-billion Educational Employees CU in Fresno, Calif., according to a new study that indicates that those CUs that embrace tech are growing much faster than those that don’t.
Financial tech startup Shastic has released the first Shastic Index, a quarterly ranking that scores financial institutions on innovation. The Shastic Index reveals where a financial institution ranks in user satisfaction and performance across new digital channels such as mobile banking and social media compared to peers in the industry.
“According to the NCUA, the median annual asset growth rate for credit unions ending in Q4 2015 was 3.3%, and the median annual loan growth rate was 4%. In contrast, the most innovative credit unions on the Shastic Index are growing three times faster than the industry, with median asset growth and loan growth rates of 10.36% and 11.07% respectively,” said Joseariel Gomez, CEO of Shastic.
The $75-billion Vienna-Va.-based Navy Federal ranked second and $3.4-billion Eastman CU in Kingsport, Tenn., was third. See the chart below for the top ten.
“In a time when consumers, especially Millennials, are fleeing physical branches and migrating to screens and devices for their banking needs, user experience is the ultimate competitive advantage,” Shastic stated. “As Apple and Facebook have proven worldwide, a great user experience results in loyalty and high growth. The Shastic Index is a resource for financial institutions to better engage their peak borrowers through mobile, and social media channels.”
The Index analyzes end user data, taking into account iTunes user ratings and Facebook metrics. It then consolidates this data into a score that financial institutions can use to determine their performance within their peer group.
"Mobile banking and social media have become strategic channels that impact not only customer satisfaction, but also the ability to attract key growth segments," said Jim Lowe, director of marketing at Educational Employees Credit Union. "At EECU, we're always trying to find more meaningful ways to engage with our members and attract new ones."
Shastic’s Innovation Index currently extends to credit unions, with banks set to follow as the next expansion, the company said.
The Shastic Index is available as an annual subscription. To request a copy, email contact@shastic.com or call (408) 6000540.