By Ray Birch
PALM COAST, Fla.—What can credit unions do to regain their service advantage over banks? It’s a question that has been regularly discussed among analysts after credit unions slipped in service rankings to banks for the third consecutive year in a well-respected national study.
As CUToday.info has extensively reported, CUs have fallen behind banks for three straight years in the American Customer Satisfaction Index (ACSI) study. The study’s data reveal the primary reason is digital—banks have used their deeper pockets to invest in mobile apps perceived by consumers to be better than similar credit union apps.
What the ACSI study has found is that how consumers define “excellent service” has evolved from the long-time credit union strength, the in-person, friendly face, to preferences for a strong mobile app that offers a great experience.
CUToday.info has embarked on a series to address this troubling trend, seeking answers as to why this is happening and what specifically can credit unions do to improve.
From seamless digital solutions to much better onboarding tools to strategies that will help small CUs overcome this hurdle, CUToday.info has been providing readers with wide-ranging coverage on this important issue with months of coverage:
The coverage includes:
The One Advantage CUs Still Have Over Banks
ST. PETERSBURG, Fla.—Credit unions still have at least one “sweet spot” they can leverage in the era of digital relationships, says one expert.
Jeremiah Lotz, managing vice president, digital and data at PSCU, stressed that credit unions have done well with building trusted relationships with members, more so than banks.
How CUs Are Hurting Their Own Member Growth
WASHINGTON—There is a single question credit unions frequently ask prospective members that is thwarting membership growth, according to one person, who added the way credit unions also take other steps only make the problem worse.
The Steps CU Leaders Should Be Taking Now
SCOTTSDALE, Ariz.—While credit unions may once have had the technology edge over banks, that lead has eroded and it has done so at a very bad time, says one expert, who is recommending CU leaders take several steps.
WARNER ROBBINS, Ga.—It is as much a David and Goliath battle among financial providers as ever, but it’s a fight that small CUs can win if they have the right sling and stones, according to one small credit union.
Consumers Want Seamless Interactions
LOMBARD, Ill.—The biggest challenge for members and would-be members in doing business with many credit unions is there is just too much “friction” in the process, says one expert, who noted that CUs not only must respond to banks that have been working and investing diligently to ensure seamless customer interactions, but also to a generational shift.
Here's What Survey Of CUs Found
LAKEWOOD, Colo.–Credit unions were quick to move to digital banking when the health crisis hit in 2019, but where they stand today with e-services may not be good enough to carry them into the future, according to the findings of one analysis.
Time To Focus On Members' Lifestyles
RANCHO CUCAMONGA, Calif.—There’s a “splintering” of member relationships taking place right now, according to one analyst who stresses if many credit unions don’t change their focus they will be left behind as members move on.
CUs Risk Losing Young Account Holders
RANCHO CUCAMONGA, Calif.—Credit unions have long prided themselves on building trust with members, but that’s simply no longer enough to keep them in the fold—especially when more than half of young consumers have expressed an openness to making a move, says Suzette Kent.
Small CU Closes Branches, Opens Itself to Growth
LEBANON, Ind.—How serious was one credit union about going completely virtual? It took baseball bats to its office printers, smashing them to pieces to emphasize the importance of ditching its bricks-and-mortar ways.
Durning the past few years NorthPark Community Credit Union has made many other unconventional moves, which it contends outline a path small CUs can follow to continue to grow and win in the fight against much larger players.
A Deeper Look At a Troubling Trend
ANN ARBOR, Mich.–It’s now become clear that what was once considered an alarming finding—credit unions falling behind banks in a highly respected national consumer satisfaction survey—is an established trend, and it may not end soon if CUs can’t improve their digital presence, according to one expert.
Expert Says CUs Must Leverage One Strength
IRVINE, Calif.–Credit union leaders frequently worry they and their CUs are going to “lose” in the financial services market due to a lack of the latest in technology, but what they are overlooking is the great strength they have in consumer trust, according to one expert. And when that trust and tech are effectively blended, it can be powerful, the same expert added.