LOUISVILLE, Ky.– Two-thirds of consumers say they don’t feel they are really known by their FI, and more than half of members say they feel less of a connection with their credit unions, according to a new survey.
The survey found those sentiments have remained largely similar in recent years, despite advances in AI, digital banking, and marketing.
White Clay, a provider of relationship profitability and analytics software, said it conducted it conducted a survey online in conjunction with The Harris Poll and polled nearly 2,000 U.S. adults who use financial institutions were surveyed about their relationships with their primary bank or credit union.
The Findings
Among the findings:
- 67% do not feel truly known by their primary financial institution, with almost a third (31%) feeling like just another account number.
- Users of online-only and national banks are more likely to not feel truly known by their primary financial institution, with 75% and 68% reporting this sentiment, compared to 65% of users of local/community banks or credit unions, and 63% of users of regional banks.
- 52% of people surveyed feel less personal connection with their bank/credit union now than they have in years past. The survey found this sentiment is stronger among users of local/community bank/credit unions and regional banks, with 57% and 56% expressing the loss, compared to 52% and 42% of those who use national and online-only banks.
- 53%) of the respondents would consider switching from their financial institution if another bank/credit union offered more personalized financial guidance than their current financial institution.
- Online-only bank users are most likely to consider switching (63%) compared to users of national banks (55%), regional banks (50%), and local/community banks or credit unions (45%).
A ‘Loud Alarm’
“Consumer sentiment is sticky; while the world is rife with change, from more advanced technologies to shifting economic landscapes, year over year data on consumer feelings remains unchanged,” Mac Thompson, CEO and founder of White Clay, said in a statement. “These are times when trust and stability in one’s financial provider matter. Still, most consumers don’t feel seen and would consider moving their accounts because of it. This is both a significant opportunity and a loud alarm. Banks and credit unions must move beyond transactional engagement and focus on relationship banking to earn long-term loyalty in this new environment.”
2 Responses
Excellent reminder for CUs.
people it claims to serve.
When credit unions chase scale instead of service; when they reward executives for mergers while telling members nothing is changing; when boards become spectators instead of stewards; when trade associations celebrate asset size and branding deals instead of cooperative virtue, this is what happens.
Members feel less connected because the institutions themselves are less connected. The movement that was born in parish basements and factory floors now behaves like a mid-tier banking sector with better tax treatment.
Now the members are saying it out loud. They’re not confused. They’re not uneducated. They can feel the drift.
This survey is not a data point. It is an indictment. A movement that loses the trust and affection of its members has already begun to lose its soul. And if leaders don’t reverse course, the members’ disconnection won’t be the problem — it will be the verdict. Edward Speed”