Survey: CU members trust CUs more than banks

SAN DIEGO (4/24/09)--A majority of credit union members--88%--said they trust credit unions more than banks, according to CUTS Performance Marketing, a performance marketing network for credit unions, which released the results Wednesday of a survey conducted in partnership with Kelton Research.

Even for members who use their banks more often, nearly 7 out of 10 (69%) still find credit unions more trustworthy than banks. Also, 61% of members said they enjoy being a member because they believe credit unions will keep their money safe, while 43% find that credit unions adhere to higher standards than other financial institutions (MarketWire April 22).

"It comes as little surprise that most credit union members trust their credit unions more than any other financial institution," said Jeff Plumer, president of CUTS Performance Marketing. "With issues like insolvency and corruption among today's financial headlines, it's no wonder members highly value the benefits and standards of their credit unions."

The survey also indicated that nearly 3 out of 4 members (72%) say belonging to a credit union has more advantages than being a bank customer. In fact, more than one-third (35%) said their preference of a credit union over a bank is one of the chief reasons for joining.

Of the top credit union advantages, 62% said the best one is knowing their money is safe, followed by access to special discount offers on non-traditional products that fall outside of typical banking offerings (55%) and convenient branch locations (51%).

Even though access to special discounts on non-traditional products ranked high and nearly all members (95%) said they trust special discount offers from their credit union, nearly 4 in 5 (79%) still purchase them somewhere other than their credit union.

Only a small percentage of products are purchased directly through the credit union's branch or website, including auto insurance (4%), tax preparation software (3%), event tickets (3%) and personal finance management software (2%).

Still, there is evidence that the availability of discount offers would increase credit union use, the survey indicated. Almost four in ten (37%) members would use their credit union more than they currently do and a majority of members (85%) expressed a desire to see more special discounts from brand-name companies offered by their credit union.

"These survey findings reinforce the immediate opportunity credit unions have to build on the strength of their members' unique trust and loyalty," said Van Barker, CUTS senior vice president. "By offering savings on non-traditional products and services, credit unions can broaden the benefits of membership while further differentiating themselves from other types of financial institutions."

courtesy of cuna.org