Share of Wallet Part II

Share of Wallet Part II:

Last month, we looked at the share of the total personal customer wallet for the top 25 credit unions and we discussed the various factors driving growth. This month, we look at share of wallet by product and how share has changed over the last 5 years.

  • This table shows the ratio between share of the Provincial personal bank and credit union market to the member share of the Provincial population.
  • An index of 100 suggests the share of wallet is commensurate with the average of all banks and credit unions.
  • Most credit unions do not separate personal and commercial deposits for reporting purposes.  This would result in the deposit index being somewhat higher than lending share.
  • Only 4 of the credit unions have a total deposits and loans index higher than 100.
  • 13 of the 25 credit unions have a deposit share of wallet index of over 100 whereas only one credit union has a loan share of wallet index over 100.  This is likely reflective of the aging demographic of credit union customers.
  • Most banks have strong mobile mortgage specialist networks and some participate in the mortgage broker channel.  This would be one reason why banks would enjoy a higher loan share of wallet.
  • Competition is more intense in major urban centres for branch, direct and broker channels resulting in a lower share of wallet for credit unions in these markets.
  • This table shows the 5-year change in the share of wallet index.
  • A cleanup of member numbers often associated with the implementation of a newbanking system can impact the share of wallet change over 5 years. This appears to have been the case for Affinity (decrease in member count) and Assiniboine (increase in member count)
  • All but 5 of the credit unions improved share of wallet over the last 5 years. This demonstrates the leverage within the client base for driving growth.

McVay and Associates monitors share of market, member share and share of wallet down to the branch and Federal Election District market levels. Drop us a line if you would like to know more.

David McVay