Banks and credit unions recognize that success requires creativity, particularly in how they present themselves to a steadily more discerning customer base. There is much more to the member relationship than simply marketing a low-fee, low-interest-rate credit card.
A recent report of over 2,000 consumers showed that nearly three of four consumers give to charity, and they want their financial institutions (FIs) to also support local causes. Consumers’ desire to see their FIs connect with local charities is strong enough that some will go as far as to move their accounts to another FI that does.
The most successful FIs are active in the communities they serve and recognize that actively participating in local affairs is a necessary part of business. It is important for credit unions to learn more about these insights on how local charitable giving affects where consumers choose to do business.
The link between charitable giving and local businesses
Consumers feel strong connections to their local communities, and many contribute time and money to support local charities.
- 74% of consumers donated money to charity in the past year
- 44% of consumers volunteered their time
Those who support local charities financially are more likely to do business with local FIs and service providers such as doctors, lawyers, accountants, and financial planners.
- 88% of consumers who donated a significant amount of money to charity without volunteering their time bought meals at local restaurants
- 82% percent of consumers who made charitable contributions did business with merchants in their localities
- 53% of consumers who donated a significant amount of money and volunteered a significant amount of time to charity did business with local FIs
How charity and customer satisfaction intertwine
Overall, FIs seem to be doing a good job with customer satisfaction. Eighty-nine percent of FI customers who donated significant money and volunteered significant amounts of time are either very or extremely satisfied with their primary FIs.
Consumers’ readiness to switch FIs because their bank or credit union does not support local charities is varied, but noteworthy.
- 43% of bridge millennials and 42% of millennials would move their accounts over to FIs that charitably support their local communities
- High credit card spenders, a valuable cohort of consumers, are the most likely to switch to an FI that donates more to local charities
Prioritizing charitable giving in your community
The pattern is clear: 93% of consumers who say their FIs were generous with their charitable contributions are very or extremely satisfied with their primary FIs, and 86% of consumers who say their FIs made more modest charitable donations are equally satisfied.
These are just a few key findings in “Financial Institutions and Customer Loyalty: The Value of Investing In Your Community,” a PYMNTS and Elan collaboration.
At Elan, we understand that supporting our partners goes beyond credit card servicing. In 2022 alone, we have donated over $625,000 on behalf of our credit union partners to nonprofits in their local communities through our charitable giving program. These gifts are paired with in-person volunteer events alongside our credit union partners.
Download the full report for more insights and learn why prioritizing community is necessary.