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Gallup: Mortgages Offer Opps for Member Engagement
Monday, November 30, 2015 6:40 AM

Getting a mortgage can be a stressful and unhappy experience for consumers, a new Gallup study reported. Only about one in five recent mortgage buyers (22 percent) were fully engaged with their mortgage provider. That compared with 29 percent of customers who are fully engaged with their investment firm, 30 percent with their primary financial institution, and 32 percent with their home, auto, or life insurance provider.

The study suggests credit unions have an opportunity to leverage their stellar reputation for member service to engage consumers in the mortgage-buying process and nurture future growth in the process.

When consumers need a mortgage, they're more likely to turn to their main credit union or bank if they are fully engaged with the organization. Among consumers with a mortgage, 39 percent of those who were fully engaged used that institution for their mortgage, compared with only 25 percent of actively disengaged customers, according to Gallup's 2014 Retail Banking Panel Study.

Engagement is also a good indicator for future growth. Fully engaged mortgage borrowers are more than twice as likely to return to the same bank or credit union for another mortgage when the need arises. Further, one in five customers reported that they chose their mortgage provider based on a recommendation from a friend, family member or colleague. However, organizations must earn these endorsements.

When asked how likely they were to recommend their mortgage provider to a friend or family member, 93 percent of fully engaged customers said they were extremely likely, compared with only 3 percent of actively disengaged customers who said the same.

Other respected business rankings have put credit union on top for trust and service as well—Consumer Reports, the American Customer Satisfaction Index, Harris Poll, Temkin Group, and Chicago Booth/Kellogg School Financial Trust Index among them.