Study Suggests CUs Could Cash In on Bank Customers
Bank Transfer Day encouraged consumers to walk into credit union branches and open accounts last Nov. 5. And as credit unions reviewed their deposit growth data from fourth-quarter 2011, many viewed the media-hyped event a success.
But according to a new report from Javelin Strategy and Research, only 3% of consumers fully abandoned their large banks during the quarter. And now, 11% of consumers say they’re likely or very likely to switch to a different financial institution sometime in the next year, giving credit unions an opportunity to become primary banking destinations for more consumers, Javelin said.
To avoid missing out on new memberships, credit unions should consider improving the quality of their online account opening processes, Schwanhausser said. Consumers demonstrated a 50% abandonment rate when it comes to opening and funding credit union accounts online, Javelin found.
“A first impression matters,” Schwanhausser said. “Credit unions should make sure online account opening is a smooth process from the beginning.”