SYDNEY, Australia–More CUs in this country are responding to their shrinking numbers by rebranding themselves with the word “bank.”
According to research by Finder.com.au, one in eight Australian credit unions closed or rebranded in the past year, while the number of building societies in the country declined by a significant 37%.
Finder.com.au quoted one analyst as saying the move is being driven by the fact many younger people don't really understand what credit unions are. People hear the word “credit” and think of credit cards, while “union” has become even more controversial since it was originally used to evoke the cooperative spirit, the analyst suggested.
"So for young people, these words strung together don't make much sense," the analyst was quoted by Finder.com.au as saying. "If no one knows what you do, it will be hard to attract new business. Using the word ‘bank’ is more simple for customers and younger generations."
Among those making the move: The Queensland Police Credit Union, which is changing its name to QBANK on July 1.
Credit unions in Australia are known as “customer-owned” institutions.