EL SEGUNDO, Calif. — A recent study found the No. 1 feature consumers look for in a bank or credit union is low or no fees, which should be an advantage credit unions can leverage, according to one analyst.
The results of the
"Credit unions still are trying to stay afloat themselves, so they cannot give away products and services for free, but strategic incentivizing is important," she advised. "Maybe have some things be free for new members. On top of that, credit unions need to show how competitive they are in rates and fees in their marketing. They have amazing products, so they should showcase them more."
GoBankingRates surveyed more than 1,500 people, and 45% of respondents said their chief concern when choosing an FI is avoiding fees. Online and mobile banking (17%) was the next-highest-ranked priority, followed by convenient branch locations (14%). Interest rates and customer service (12% each) ranked lowest on the list.
"In simple terms: Americans are really freaked out about losing money, more so than they are about growing their wealth," Jamie Catmull, a GoBankingRates representative said in an e-mail.
Wanting High Rates Of Return
The finding that was most interesting to Calonia was the responses by people in the higher income brackets.
Those who earned between $100,000 and $149,999 were far more concerned with interest rates than with fees, prioritized great interest rates, with 46.7% prioritizing great interest rates. Only 6.7% of this income bracket were most concerned with low or no fees, compared with 49.9% of those earning between $75,000 and $99,999, 46.9% of those earning $25,000 to $49,999, 44.2% of those earning $0 to $24,999 and 43.1% of those earning $50,000 to $74,999.
"The $100,000 to $149,999 said they put greater value on interest rates," Calonia assessed. "They are interested in their money making money, which I found thought provoking."
Another "interesting" finding to Calonia was the responses from 18- to-24-year-olds, who placed the greatest emphasis on mobile and online banking features. She said this is further proof that as much as credit unions need to serve all the various age ranges in their membership, they need to embrace how "different" Gen Y is.
"People in Gen Y trust what is familiar, and what they grew up on was mobile technology and simple user experiences," she assessed. "They also trust the information they are getting from their peers. So if a friend tells them about a cool app a credit union offers, it ripples down the person's entire network. Credit unions need to be developing apps, but they also need to let young people know how credit unions can help them. Use social media and outreach events to forge a stronger relationship with that group."
Among other highlights from the study:
- Females cared more about fees than males, with 48.9% of females listing low or no fees as most important, compared with 40.7% of males--a spread of 8.2%.
- The second biggest disparity between genders was on the importance of convenient branch locations; 17 percent of respondents who favored convenience were male, 10. 6 percent were female — a 6.4 percent difference.
- Gender difference varied by less than 3 percent for online and mobile banking, exceptional customer service, and great interest rates.
- The oldest age group, 65 and older, was more concerned with exceptional customer service than any other age group.
