ANN ARBOR, Mich.–Credit union member satisfaction is at a four-year low, according to a new study.
The 2016 Credit Union Satisfaction Index from CFI Group shows that despite strong membership growth for credit unions–or perhaps because of it–member satisfaction has slipped three points on a 100-point scale from 87 in 2015 to 84 in 2016.
“The lower score serves as a wake-up call to credit unions,” CFI Group said in a statement. “As credit unions celebrate a strong 2016 and look to 2017, they must be on guard to protect against member attrition.”
CFI Group said it has identified four opportunities for credit unions to reduce member attrition and grow in 2017. “Each of these opportunities involves a managerial shift that includes continuing to manage current practices while simultaneously developing new practices,” the company said. According to CFI Group, the four opportunities are:
1. Measure the Member Experience. “In addition to managing key financial ratios, develop key member engagement metrics to provide a holistic view of performance,” the company recommended.
2. Target Millennials. “Maintain engagement with Boomers and Gen Xers, but also further develop Millennials as a customer segment for future growth. Millennials are generally less satisfied with credit union services, and growth with this sector will require additional focus.”
3. Lower Deposit Account Interest Rates. “Limit fees, deliver fee transparency, and be generous with fee cancellations; in return, Millennials will accept lower deposit account rates. Older Millennials (age 26-34) are of particular interest, since they tend to carry high checking and savings account balances.”
4. Improve Online Processes. “Current availability and functionality for online banking and apps are falling behind, particularly for older Millennials,” the company said. “Credit unions must continue to develop processes that are robust and seamless to keep up with these high expectations.”
"Credit unions in the U.S. are experiencing seismic shifts as consumers grow more comfortable with cloud banking and alternative banking models such as Bitcoin,” said Mark Galauner, senior customer insights consultant at CFI Group. “If credit unions closely measure and follow their members, they can anticipate changes in the demands of their members and preemptively act to retain their member base."