MADISON, Wis.—A new study indicates that credit unions have a huge opportunity to grow membership among middle-income Americans.
Angie Fuhrken, director of marketing strategy and commercialization for CUNA Mutual Group's TruStage brand, said that new TruStage research shows that 64% of middle-income, non-credit union members would consider opening a credit union account.
“If we can reach this group and educate them on the benefits of membership, there’s a good chance they can be influenced to join a credit union,” she told attendees at CUNA Mutual Group’s sixth annual Discovery Conference Wednesday.
Fuhrken explained that middle-income Americans were defined in the study as those between 30 and 70 years of age with household incomes ranging from $25,000 - $100,000. “This accounts for approximately 36% of the U.S. adult population, and 42% of credit union members,” she said.
Twenty-eight percent of middle-income bank customers said they were “very” or “somewhat likely” to switch financial institutions in the next year, according to TruStage’s What Matters Now research.
“That translates into more than five-million middle-income bank customers who are open to switching financial institutions,” Fuhrken said. “This doesn’t include the millions of customers that are considered to be non-banked.”
To boost credit union membership within this demographic, Fuhrken recommended credit unions focus on:
Family and friends
“Find opportunities to reach new members through your community presence and continue to deliver a superior member experience. Sixty-one percent of middle-income Americans search for customer service when selecting a financial institution,” she said. “Credit unions as a whole have a high net promoter score, suggesting that members are talking about their credit union and recommending membership to others. Encourage members to share their member experience with family and friends today.”
Convenience
“Credit unions are commonly perceived as inconvenient. While in fact credit unions consistently score an average of 90 on a 100 point scale for their online and mobile banking satisfaction,” said Fuhrken. “Reinforce shared branching, a robust ATM network and mobile capabilities as part of the credit union’s service messaging.”
Financial stability
“Sixty-two percent of middle-income Americans worry about their family’s financial stability on a daily basis. They are looking for ways to make auto loan payments, mortgage payments and other expenses more manageable. Promote low interest rates and fee structures to show how credit unions can help build financial security.” Fuhrken said.
“We continue to see strong growth in credit union membership but there are millions of consumers out there who are open to joining a credit union,” said Fuhrken. “As you develop your plan to build membership, consider leveraging referral opportunities, reinforcing convenience and offering new products and programs to help members and their families build financial stability long-term.”