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72 Percent of CU Members Have a Bank Account
Tuesday, November 19, 2013 7:00 AM

Recent research by the Cornerstone Credit Union League shows that 72 percent of credit union members not only have a bank account, but of those same members, 30 percent will say their largest balances are with those banks and 43 percent will say that the bank handles most of their financial business.

“Disloyal? Perhaps, but then again, maybe not,” suggests Rick Grady, vice president of Research for Cornerstone. “Sometimes members just don’t know what is actually available. We may think all members are good listeners and readers with great retention skills, but often, when performing member studies and focus groups, we discover that even the simplest messages can go unnoticed or drowned out.”

Members are bombarded with messages every day with confusing alternate signals. For example, the credit union may advertise a wonderful new or used car loan rate, but all day long the member also hears other financial institutions provide auto loans too. And when the actual act of shopping for a car takes place, and the member walks onto a dealer’s lot, the sales person has a whole new set of messages.

“All of these messages compete for the member’s attention and typically the last one that sounds like a real good deal wins,” notes Grady. “This may explain why just slightly more than 20 percent of members have their auto loans with the credit union.”

Fortunately, exceeding that national average is not difficult. As the study and white paper “Moments of Truth” points out, “three principles, applied flawlessly, led the credit unions to outperform their peers, their competitors, and the industry.”

The ground work for discovering how the credit union fits into the members’ financial picture is to ask them, through research surveys and focus groups. Cornerstone can help credit unions in that discovery. Visit the Research section of Cornerstone’s website to learn more about focus groups; member and non-member surveys.

If you have any questions, you may contact Grady, at (469) 385-6486 or email rgrady@cornerstoneleague.coop.