TUCSON, Ariz.–The consumer migration to credit unions is part of something larger than just numbers, according to Hope Schau, an expert in consumer behavior patterns and associate professor of marketing at the University of Arizona.
"Right now, in this perceptual space, consumers are really looking at those attributes credit unions have–being locally focused, being consumer driven–and they're seeing that as a welcome change" from the traditional financial services business model.
"Think about smartphones in comparison to regular phones," said Schau. "Smartphones came along and changed the entire way we think about phones, and I think the credit union movement is more like that. It changes the way people think about financial institutions. Even though they're not new, they were relatively undiscovered, especially by Gen Y. Even Gen Xers probably weren't thinking in terms of community and sustainability as they do now."
While some had suspected that credit unions' window of opportunity borne out of Bank Transfer Day was closing, Schau scuttled that idea. "As long as people are talking about it, the window remains open."
Rather than seeing consumers eventually revert to normal behaviors and returning to the big banks, Schau noted that even as CU growth levels return to normal, a sea change has already occurred, with consumers responding en masse to the community-focused, member-centric aspects of credit unions.
"This is part of a bigger shift toward participation, and why shouldn't they participate in financial institutions?" said Schau. "They have a ready ally with that, because credit unions are all about members. It's more a question of 'Why haven't more people caught on to credit unions?' than 'Why are they now?'"
