MADISON, Wis.—Compared with banks, credit unions are excelling at providing quality products and service, which is keeping consumers happier and more satisfied.
Those are findings from a new survey from the Filene Research Institute that indicates CUs should continue to capture more market share and retain members.
The study, titled "The Consumer Experience: Financial Institution Preference and Usage Factors," noted that while credit unions can't prevent every member from shifting their funds or closing their account, CUs' "current outlook for growth is extremely promising."
The report, which analyzed consumer usage and preferences using McKinsey & Company survey data from 2013, suggests that consumers have more trust in credit unions than in banks. As a result, credit union members are more likely than bank customers to keep a greater portion of their holdings with their institution.
"As long as this trust is sustained," the study noted, "there is no reason to think credit unions can't grab more market share. We have learned that consumers choose financial institutions based on income, age, and attitudes toward service offerings. These preferences are always subject to change. The onus will be on credit union leaders to ensure they don't."
Those who use credit unions as their primary financial institution consistently report the highest level of satisfaction with various attributes of their PFI.
Among credit union respondents, 85% feel their assets are completely safe at their credit union, while only 68% of bank customers feel the same about their institution.
Other study findings include:
- Consumers who use a credit union as their primary financial institution are much more likely than bank customers to agree strongly with positive statements about their primary financial institution.
- Some 48% percent of credit union members feel their credit union rewards them for remaining loyal to their brand, compared to 34% of bank customers.
- Credit union members are happier with the level of service they are receiving from their institution compared with their bank counterparts.
