Credit Unions in Business Banking Part 1: An Industry Eyes Opportunities to Grow

Credit unions stand at a crossroads in business banking. As their consumer membership base gradually erodes, many are turning to business services as a lifeline for growth. But can these community-focused institutions truly compete with banking giants and nimble fintechs? They will face significant hurdles, but the door is wide open, as many businesses—dissatisfied with impersonal bank relationships—are receptive to a more personalized approach and community focus. 

This Javelin Strategy & Research report charts credit unions' current position in business banking, drawing on new Javelin data to profile their business member base and analyze their product offerings. It also reveals how businesses perceive credit unions as financial partners. And it provides recommendations for credit unions, and digital platform providers supporting them, to abandon their defensive posture and reimagine their role in the business banking market. 

This is Part 1 of a two-part series. It sets the stage for an upcoming Maturity Path report, which will provide a detailed road map for credit unions to build out their small-business product and digital offerings. 

Key questions discussed in this report:

• What kinds of businesses are banking at credit unions today, and what does the typical product offering look like? How do business owners view credit unions as providers of financial services? 
• What digital and product levers can credit unions pull to attract and retain small-business clients? 
• What can vendors do to support credit unions as they expand into business banking?

Companies Mentioned: 

American Express, Bank of America, Block, Capital One, Chase, Navy Federal Credit Union, PenFed Credit Union, SECU, Wells Fargo