An examination of SOHO revenue potential, financial product usage trends--both nationwide and among credit union members--and opportunities for cross-selling to both the SOHO member and business are included in the 68-page research report, The SOHO Market – Growth and Potential. Other topics include a detailed look at defection rates from current financial services providers, satisfaction issues, and strategies and implications to help credit unions achieve success within the SOHO market.

SOHO business owners tend to use a variety of different financial services providers, although most consider a bank to be their primary provider (see chart above). Currently, only 9% identify a credit union as their primary business provider. Among business owners who prefer to consolidate their primary personal and primary business financial relationships, 70% say they began their personal relationship with the provider first.

"This is great news for credit unions," says Katy Slater, vice president of Consumer Information Services for NFO WorldGroup Financial Services. "They have the opportunity to capitalize on their traditionally strong trust relationships with members to cross-sell into SOHO business activities."

Additionally, business financial service providers are not actively pursuing members who own SOHOs. Nearly two-thirds of SOHO owners say they have not received a sales pitch for business financial services during the past year. Credit unions with the resources to establish a small business development function and fill any product line gaps necessary to target this market segment could potentially reap huge rewards.

Along with business checking and savings accounts, about two-thirds of SOHOs use some type of credit product, generally from their primary provider. As a result, the credit union share of business credit is currently small. At best, credit unions have an 18% market share of commercial, unsecured lines of credit and a 17% share of personal loans to finance business activities. Less than 1% of SOHO members have commercial mortgages and/or business term loans with a credit union.

"It is clear that there are opportunities available for credit unions wishing to enter the SOHO market," says Oetzel. "Opportunities to not only increase revenue through the offering of business products and services, but also to strengthen existing personal financial relationships with members who own small businesses. This report provides the background information that credit unions need to ensure their success in tapping the expanding, and often forgotten, SOHO market."

To order The SOHO Market–Growth and Potential, call CUNA Customer Service at 800/356-8010, ext. 4157, and ask for stock number 23278-QEA. Or order online at www.cuna.org, by selecting "Research & Statistics," and "Strategic Marketing/Planning." Single copies are $295 each for credit unions, with multiple copy discounts available. The report price for non-credit unions is $395 each.