BOSTON (8/15/08)--Consumers' trust in their primary financial institution is directly correlated to wallet capture--and credit unions are doing well, indicates a study released this week.
Credit unions are outperforming banks in rates, fees, pricing, products, reliability and engagement, according to the study, by Mercatus LLC, a financial services consulting firm (MarketWatch Aug. 13).
The average wallet capture share for financial institutions increased by 18 percentage points on a five-point scale, from 34% at a trust score of 1, to 52% with a trust score of 5, the study said.
Trust relationship scores for credit unions and banks ranged from 64% to 84%. Credit unions and local banks scored higher in transparency than other financial institutions at 75%, compared with national banks' average score of 63%.
Factors affecting trust include transparency of costs, employees' willingness to go "above and beyond," and operational processes clarity. Trust also drives retention and cross-selling.
To build trust, the study said financial services providers should:
Disclose fees for products and services;
Explain steps to open new accounts or address service issues;
Ensure safety of members' information; and
Maintain fees at levels members expect.
courtesy of cuna.org