Matt KeenanCredit unions have long taken extra steps to build brand loyalty and separate themselves from large financial institutions by delivering superior customer service. And, for years these efforts paid off. In 2011, CUNA reported that membership at not-for-profit financial institutions hit an all-time high and did so again in 2012, with credit union membership surpassing 93 million in the second quarter of that year.

However, the competitive landscape is changing at warp speed as increased financial options are creating an environment in which members are more likely to move their services elsewhere. At the same time, the perceived homogeneity or commoditization of core banking services has created a downward spike in overall brand loyalty for banks and credit unions alike, as consumers no longer have the same challenges or level of angst when shifting accounts from one financial institution to another.

In sum, the financial services market is a highly competitive and highly fragmented space with an almost dizzying array of options available to customers. Even though they have maintained their reputation for delivering better service, credit unions are not immune as they face increased competition from newer consumer options such as internet-only banks and payroll cards.


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.