Although the commonwealth’s large banks often have the resources necessary to keep up with emerging technology, smaller institutions, including credit unions, may feel greater pressure to remain competitive by offering the latest services. Assessing new technologies, from wireless services to Internet banking, and determining which will most benefit their customers can be difficult when departments are spread thin.

But a new Internet service aimed toward credit unions may help executives of those institutions crunch data on emerging technology and gain access to downloadable research and analyses of how it is expected to affect the industry.

The research, provided by TowerGroup of Needham, is part of an agreement reached with the Credit Union National Association & Affiliates to create a Credit Union Technology Advisory Center for credit unions.

“The service is really brand new, and it’s quite unique,” said Mark Sievewright, president and chief executive officer of TowerGroup.

“The Credit Union Technology Advisory Center will be a subscription-based service through the Web,” said Vicki Joyal, vice president of market research and information at CUNA.

Set for roll-out in early 2001, the service will offer research to credit unions on subjects ranging from e-payments to electronic checks and wireless technology. The service will offer not only research but also case studies, applications and costs, said Joyal.

“We’re going to be writing research that’s focused specifically to credit union issues,” said Sievewright.

To accomplish this, TowerGroup is launching a survey in mid-November that will be sent to about 2,000 credit unions to find out what issues most concern credit union personnel, he said.

“The credit union movement is unique. It’s set up under different [rules] legally and statutorily than community banks, but also they face different sorts of challenges. One challenge is the investment potential for technology … versus a large commercial bank. We also think the market they serve, while it’s very broad, is deep-routed in the credit union philosophies. They make decisions differently,” he said.

TowerGroup employees will answer subscribers’ questions submitted via e-mail with a one- to two-day turnaround time “depending on the nature of the question,” said Sievewright. “We plan to make it as interactive as we possibly can. We believe e-mail provides flexibility all the way around. We have high hopes, naturally, but until we roll it out we really don’t know,” he said.

Two other offerings through the service will include consultation services by TowerGroup and a teleforum program, said Joyal. The teleforum program will allow subscribers interested in a topic to listen to a live presentation via phone line and ask questions of TowerGroup professionals as well as network with each other, she said.

The idea for the service came as a result of listening to what credit union professionals are talking about, said Joyal.

“We actually have been hearing things, but our research had shown credit unions are mainly interested in receiving information in two areas; one of those is technology. Anything relating to technology they are [interested in] far and above anything else,” she said.

Consumer research and trends is the other area of interest. The research to which Joyal referred was conducted through the “1999 CUNA Publications Readership Survey.” The goal of the survey was to find what members wanted to read in its publications, she said. As the results came in, the idea for the CUTAC was solidified. However, Joyal said the survey results were not the sole reason for creating the service.

“So many of our customers, especially the larger credit unions, are on the Web and we felt this would be a good idea. It’s more efficient and I think it will allow us to bring them more information in a cost-efficient manner,” she said.

‘Huge Challenge’
The decision to partner with TowerGroup was easy, said Joyal, considering the shared history the two share.

“They’re very well-respected and very knowledgeable, Joyal said. “We also had started working with TowerGroup CEO Mark Sievewright when he was at PSI Global.

“It’s kind of a combination of their reputation and the fact that we had a very good working relationship with their CEO,” she said.

“The CUNA and I have quite a lengthy relationship. I’ve lectured and spoken on a number of credit union events around the country,” Sievewright said. One recurring theme was the priority credit unions place on technology.

“We wanted to try to get quite an efficient mechanism for knowledge sharing … and hence we chose the online route,” he said.

Sievewright said he expects the subscription fees to range between $10,000 and $15,000 “at the top end,” depending on the information grouping to which the credit union wants access. “We obviously want to research the price sensitivity,” he said.

“I think technology is the number-one challenge right now for credit unions in this country and beyond. What we’re seeing right now is an unprecedented level of technology. Credit unions face a huge challenge to stay ahead as new players and new technology enters the market,” he said.

“We’re hoping the service we can offer can go some way in helping credit unions to make the right decisions,” Sievewright said.