New study highlights what makes people switch credit unions

According to the study, "factors like customer service and convenient enrollment processes are less important" to those looking for a CU or bank.

Fee transparency, inertia, and friends and family are three of the biggest determinants in whether a member joins a new credit union or engages with another financial institution, according to new research from Chicago-based Yes Marketing.

The firm’s survey of 1,000 financial services customers found that 43% of respondents first heard about their current financial services provider from family or friends, and 57% said the thing that most influenced their trust in that financial institution was whether it provided comprehensive, up-front information about fees, rates and services.

“More than 40% of customers selected their last financial services company based on the recommendation of family and friends,” the report said. “Additionally, more than half (53%) say they chose not to use a company because of negative feedback from family/friends.”

Competitive rates and fees were the biggest draw to a new financial services provider for 42% of the respondents; 22% said it was the variety of services available. Only 13% of the respondents said the institution’s ability to protect member information would influence them to use a financial services provider they’ve never used before, and only 10% said the same for branch and ATM proximity. Five percent or fewer said the mobile app, customer service reputation and the convenience of the enrollment process were the most significant factors for them.


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