Dive Brief:
- U.S. credit unions consistently earn higher customer satisfaction scores than U.S. retail banks during periods of economic uncertainty, according to a J.D. Power study released earlier this month. J.D. Power surveyed nearly 10,000 credit union members.
- Overall satisfaction with credit unions is significantly higher than retail banks. On a 1,000-point scale, credit unions scored 729 — nearly 11% higher than banks’ score of 655.
- “Credit unions are doing a great job when it comes to their core focus on delivering competitive rates and driving very high levels of member satisfaction, loyalty and brand advocacy,” Dann Allen, senior director of banking and payments intelligence at J.D. Power, said in a news release.
Dive Insight:
Credit unions typically offer better interest rates and lower fees than retail banks, making them especially attractive to consumers amid high prices, elevated interest rates and unemployment.
Credit unions outperformed retail banks in each category measured by the study, including trust, people and problem resolution.
“Top-ranked credit unions perform significantly better than banks in trust-related actions such as supporting members and providing convenience,” Allen said.
SchoolsFirst Federal Credit Union, Idaho Central Credit Union and Navy Federal Credit Union are the three highest-ranked credit unions, according to J.D. Power.
Financially healthy credit union customers are significantly more satisfied than those who are financially unhealthy, scoring 788 and 702, respectively, an 86-point difference. More than two-thirds of credit union customers are financially unhealthy.
Fees were one source of displeasure, especially among younger members. Nearly one-third of credit union members under age 40 say they will probably or definitely leave their credit union within a year because of the fees they pay. Meanwhile, only one-quarter of credit union members age 40 and older say they will leave because of fees.
Credit unions scored higher on customer satisfaction with digital channels than retail banks, with each scoring 715 and 670, respectively, a 45-point difference. However, credit union members grew more dissatisfied with mobile apps due to a lack of clear information, limited services and apps being challenging to navigate.
“While digital is a risk for the [credit union] industry, the study shows that many credit unions are overcoming that challenge,” Allen said.
