How Can Credit Unions Compete?

Posted by Colleen Cormier on March 16th, 2021

It’s no surprise that larger banks have a bigger budget. Yes, that can sometimes be difficult to compete against; however, something major that a credit union can do to compete is to have consumer trust. They also offer better customer service. Of course, customer service is imperative. However, some may not realize that generally, credit unions are considered to offer a more friendly environment than a traditional bank.  Banks are typically considered more “get in-get out,” whereas credit unions are considered more warm and inviting. Working to maintain this image can help to compete against other financial institutions. Additionally, keeping rates low and maintaining lower fees will help as well.

What Can a Credit Union Do to Compete?

The entire point of a credit union is to serve its members and provide the best service possible. However, there are certain goals that credit unions can set to be more capable of effectively serving their members. Knowing what people typically look for in a credit union is an excellent place to start; this will help a credit union to compete in 2021. The points people generally consider when deciding if a credit union is right for them include:

• Membership requirements- a credit union can compete by allowing a broader group of people to apply for membership.
• Offering a wide range of products- does the credit union have everything a customer could need or want?
• Savings rates
• Lending rates
• Deposit insurance- people want to know that their money is safe.
• Online banking services
• Mobile App
• ATM Locations

The Bottom Line

When trying to compete as a credit union, it is of the utmost importance to keep the consumer in mind. Members are the foundational element of a credit union, so it is important to provide excellent service in order to attract and gain new members.

About Author

On The Mark Strategies is a team of trailblazers guiding financial institutions in the areas of speaking, branding, strategic planning and marketing services. Technically, they are a consulting firm, but their clients prefer to think of them as trail guides. Their experience as former credit union employees, combined with the customized programs they create in-house, enable them to lead financial institutions through the great unknown. On The Mark Strategies stands ready to guide financial institutions looking to chart a new course or navigating their current path.