Credit unions have a huge opportunity to grow membership among middle-income Americans, attendees of CUNA Mutual Group’s sixth annual Discovery Conference were told today.
“Through our What Matters Now™ research, 64 percent of middle-income, non-credit union members surveyed say they would consider opening a credit union account,” said Angie Fuhrken, director of marketing strategy and commercialization for TruStageTM, CUNA Mutual Group's consumer brand.1 “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.”
Fuhrken explained middle-income Americans were defined in the study as those between 30 and 70 years of age with household incomes ranging from $25,000 - $100,000.2 This accounts for approximately 36 percent of the U.S. adult population, and 42 percent of credit union members.3
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 NowTM research.4 That translates into more than 5 million middle-income bank customers who are open to switching financial institutions.5 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.6 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.7 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.8 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.
“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.”
Credit unions can learn more about this research here, and view Fuhrken’s Discovery Conference session on-demand at cunamutual.com/registerondemand.
The Discovery Conference is an annual event sponsored by CUNA Mutual Group that attracts a national and international credit union audience of more than 1,300. The virtual, no-cost event is designed to give credit union leaders valuable industry insight and trends in the insurance and credit union industries. After the event, select content is available on-demand for attendees to leverage and share best practices through the end of the year.
Photo Caption: CUNA Mutual Group’s Angie Fuhrken gave Discovery Conference attendees member acquisition ideas from the company's What Matters Now™ research.