MADISON, Wis.—How do consumers approach financial services when they physically move from one city to another?
The Filene Research Institute is offering some answers. After studying that question, it has released a slide deck that summarizes much of what it found after surveying 862 people in late 2014.
“In many cases, credit union members have the ability to stay with their credit union after moving,” Filene said in a statement accompanying release of its research. “It may be difficult for these credit unions to keep members engaged once they’ve moved. After all, in today’s digital world, online banking offers an alternative to the branch.”
According to Filene, the survey reveals little correlation between relocating and switching financial institutions.
“This suggests that member relocation has a miniscule dollar impact on the credit union sector,” Filene said. “Members who do end up switching financial institutions after moving do so to remain within a reasonable distance of a physical branch. Since the survey asks respondents what types of financial institutions they bank at, it is unclear whether members stayed at their current credit union or chose a new one after moving.”
The Filene researched urged credit unions to invest in robust online DIY tolls and apps, and to give priority to broadening access points and service channels. The report concludes with a number of recommendations.
The research can be found here.
