WASHINGTON–A new survey finds credit unions are far better at supporting their members' feelings of wellbeing than banks are—but the numbers are also relative, as across seven-of-eight attributes CUs were never scored higher than 30% by their members when it comes to helping improve their lives.
Credit unions beat banks across all eight financial wellbeing attributes measured by Gallup, including:
- Helps me reach my financial goals (20.7% for CU members, 11.8% for bank customers)
- Looks out for my financial wellbeing (25.5% of CU members agreed vs. 14.5% of bank customers)
- Has my best interests at heart (27.1% for CU members, 14.2% for bank customers)
A Key CU Differentiator
“Caring about and supporting financial wellbeing has traditionally been a focus – and competitive advantage – for credit unions. Retail banks are clearly encroaching on a key credit union strength and differentiator, with little evidence of achieving the ambitious goal,” said Gallup’s analysts. “But Gallup research shows how retail banks -- neo banks, too -- could improve the perception of financial wellbeing with their customers and finally close the "customer-care gap" that credit unions have long enjoyed.
“The credit union business model and member-centric ethic also enhance members' belief that the credit union has its members' best interests at heart. This all adds up to help credit unions create better perceptions of financial wellbeing support among their customers,” the Gallup analysis continued. “The feeling credit union members enjoy -- of being cared for and looked after by trusted advisers -- is real. It's not marketing. To generate the same perception among their customers, banks have to do what credit unions do: seek to understand their customers' definition of wellbeing.”
Where Banks Have Strengths
Gallup said banks do have competitive advantages that can be leveraged, including financial, staffing and technological scope and scale.
“All of it could be employed toward fulfilling a financial wellbeing value proposition, as long as it includes the type of deep customer knowledge that credit unions have used so well,” Gallup said.