SOURCE: CUTS Performance Marketing

April 22, 2009 08:57 ET

88 Percent of Credit Union Members Trust Credit Unions More Than Banks

More Than 3 in 5 Believe the Best Benefit Is Knowing Their Money Is Safe

SAN DIEGO, CA--(Marketwire - April 22, 2009) - CUTS Performance Marketing, the leading performance marketing network for credit unions, today released the results of a comprehensive survey conducted in partnership with Kelton Research that showed an overwhelming majority (88%) of credit union members are quick to admit that they trust credit unions more than banks. Even for those that use their banks more often, nearly 7 out of 10 (69%) still find credit unions more trustworthy than banks. In addition, 61 percent of members enjoy being a member because they believe credit unions will keep their money safe while 43 percent find that they adhere to higher standards than other financial institutions.

"It comes as little surprise that most credit union members trust their credit unions more than any other financial institution," says Jeff Plumer, president of CUTS Performance Marketing. "With issues like insolvency and corruption among today's financial headlines, it's no wonder members highly value the benefits and standards of their credit unions," adds Plumer.

The survey also found that nearly 3 out of 4 members (72%) say belonging to a credit union has more advantages than being a bank customer. In fact, more than one-third (35%) say their preference of a credit union over a bank is one of the chief reasons for joining. And of the top advantages, 62 percent say the best one is knowing their money is safe followed by access to special discount offers on non-traditional products that fall outside of typical banking offerings (55%) and convenient branch locations (51%).

Credit Unions Still Have Work to Do

Ironically, even though access to special discounts on non-traditional products ranked high and nearly all (95%) members say they trust special discount offers from their credit union, nearly 4 in 5 (79%) still purchase them somewhere other than their credit union. Only a small percentage of products are purchased directly through the credit union's branch or website including auto insurance (4%), tax preparation software (3%) , event tickets (3%) and personal finance management software (2%). Still, there is clear evidence that the availability of discount offers would increase credit union usage. Almost four in ten (37%) members would use their credit union more than they currently do and a majority of members (85%) express a deep desire to see more special discounts from brand-name companies offered by their credit union.

"These survey findings reinforce the immediate opportunity credit unions have to build on the strength of their members' unique trust and loyalty," says Van Barker, senior vice president for CUTS. "By offering savings on non-traditional products and services, credit unions can broaden the benefits of membership while further differentiating themselves from other types of financial institutions."

Survey Methodology

The CUTS Performance Marketing Credit Union Member Survey was conducted with 401 credit union members by Kelton Research between February 24th and March 2nd, 2009 using an email invitation and an online survey. The survey has a standard deviation of (+/-) 4.9 percent.

About CUTS Performance Marketing

CUTS provides free turnkey marketing programs, dedicated support and marketing analytics to enable credit unions to attract and retain members, increase adoption of online services and generate income.

Formerly known as Credit Union Tax Services, the company has developed partnerships with more than 1,000 credit unions and is committed to broadening the benefits of credit union membership by making credit union websites a destination for savings on trusted products and services from leading merchants.

Serving the credit union industry since 1992, CUTS is a National Association of Federal Credit Unions (NAFCU) Preferred Partner in recognition of understanding the unique needs of credit unions and offering superior products and service.

For more information, visit www.cutspm.com or call 1-866-348-2887.

Contact Information

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    CRVisions Communications Inc.
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    619-823-4357