Credit Unions’ Activity and Factors Determining the Choice of Them in Lithuania

Abstract

In the recent years, the role of credit unions in the financial sector of Lithuania has gradually become more significant. The number of credit unions grew together with their assets, number of members, and depo sits. The beginning of a rapid process of credit unions' establishment and development caused unmeasured risks which led to a suspended activity of several credit unions in 2013. This caused an insignificant migration of credit unions' shareholders (members) from one union to another, retirements, etc. Although residents haven't lost the confidence, this fact demands to investigate and analyse the factors determining the choice of a credit union. After a survey of credit union members in Lithuania, the factors most significant for shareholders were determined. Also, the factors least significant for the choice of a credit union were determined, and conclusions and recommendations for managers of credit unions were given. Conclusions and recommendations can help the management to choose the strategy which would result in a higher level of new members' involvement in the union.

Causes of the low penetration rate in the South African co-operative financial institution sector: A consumer perspective

“…However, the main responsibility to make the sector a success remains that of the co-operatives themselves. In Lithuania, Jaseviciene et al (2014) found that effective advertising can help credit unions to attract new members and to choose certain strategies in order to create a credit union's public image. In North America, one of the key success factors (diversification) of a Canadian credit union is 'delivery channels', which focuses on enhancing the existing channels and developing new channels, such as wireless access and grocery store branches, so that the consumers can transact easily in any way they wish to (Schoemaker et al, 2002).…”