Credit unions deliver quality in-person and digital services but have room for improvement in security, advisory services and member appreciation, according to Jacksonville, Fla.-based fintech firm FIS' annual study.
The "2016 Performance Against Customer Expectations Index," is an in-depth global research study on consumer expectations of financial institution performance.
PACE surveyed more than 10,000-banked consumers in 10 countries, including Australia, Brazil, Canada, Germany, India, Philippines, Poland, Switzerland, the United Kingdom and the United States. Germany and the United States received the top two PACE index scores.
Among the key global findings:
- The ability to understand and use banking products grew in importance, reflecting growing consumer demand for user-friendly banking products and services.
- Consumers continue to expect more in terms of loyalty rewards than financial institutions are providing.
- Expectations for aspirational support, the primary financial institution helping guide consumers toward their financial goals, increased in every country, providing opportunities to grow relationships with customers.
Being digitally connected to their financial institution matters more than reliability and transparency to millennials. Banked millennials are four times more likely to use a mobile personal financial management app from their primary financial institution than from another source.
Other millennial findings: Slow loan processing is their single biggest pain, 72% have no financial advisor, 28% are receptive to robo-advisors and 22% are open to online financial coaching.
"This year's PACE Index shows that consumers worldwide generally turn to their primary financial institutions first, but those institutions must be prepared to serve their needs immediately," FIS Chief Operating Officer, Banking & Payments Anthony Jabbour said. "That's particularly true of millennials, who stood out in this survey for how deeply they expect their banking services to mesh with their daily lives."
Within the PACE study, FIS did a survey slice for the U.S. with data very specific to credit unions.
"Overall there are three categories for credit unions: How to run the credit union, how to connect with members and how to grow the credit union," Jabbour said.
Credit union members place the most importance, as do U.S. banked consumers overall, on the attributes that provide the foundation for building trust, Jabbour pointed out. These included safety, trust to protect money; security, protecting personal identity; fairness, no hidden charges or fees; reliability, follows through on promises; simplicity, offers easy to understand products and services; and transparency, easy to understand pricing and terms.
"We measure what was the importance of a certain attribute and what was the performance of the credit union against it, how important it was to the member and how did the credit union perform," Jabbour stated.
Strong positives included in-person service, digital payment options and anywhere, anytime access to accounts.
The index revealed some critical negative gaps exist between member expectations and credit union performance in security and fairness, key foundational attributes that need fixing. Jabbour explained some other negative gaps were associated with attributes that could enable financial institutions to grow revenue such as helping members achieve important financial goals and offering financial advice.
Members also expressed a lack of sufficient rewards for their business.
The index indicated there are opportunities for credit unions starting with using digital to bridge the gap with millennials.
For example, 20% of millennial members currently use a mobile personal financial management app to control finances, slightly less than the 23% percent average for all U.S. banked consumers. However, 61% would be interested in at least one benefit provided by MPFM.
Advisory services present another member opportunity with 85% not having a financial adviser, versus 79% for all U.S. banked consumers. More than 90% of members with financial advisers use another source.
Overall the PACE index revealed that if a credit unions and banks want to be a customer's financial institution for life, it must first meet all of the customer's daily needs. A third of U.S. customers ranked their primary financial institution as the first place they would turn for major life events that require financial investment. However, at least twice as many customers may consider an alternative resource, particularly when it comes to investing or retirement planning.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.