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If you are trying to determine whether a conventional bank or a family credit union service center will be best for your banking titan needs, you might want be interested to find out what other American consumers and depositors feel about the different types of financial institutions that are available. Generally speaking, credit unions are a much more customer friendly banking alternative that usually offer better services and charge lower fees and rates than do conventional banks. In fact, many polls and surveys bear this out also.
The University of Michigan American Consumer Satisfaction Index
The University of Michigan publishes one of the most respected and recognized customer satisfaction surveys in the United States. In fact, it is often referred to as the most authoritative and well implemented survey or index of its type. According to the University of Michigan American Consumer Satisfaction Index, credit unions consistently outperform conventional banks in customer satisfaction and confidence levels. In fact, in recent years family credit unions have outperformed conventional banks by a very wide margin.
The satisfaction survey is based on a 100 points scorecard with zero being a company that is considered to offer absolutely the lowest level of quality service and customer sales satisfaction - while 100 is considered to be a perfect score. The way the index is designed there are there is never a company or organization that would receive a 100 point score. However, credit unions consistently are scored in the mid to high 80s while conventional banks typically score in the low to mid 70s on this index. While this index is not a true indicator of the quality of services that may or may not be offered by a credit union, it is a good indicator of how customers view the quality of the services.
Reasons People Choose Credit Unions
While there are countless reasons why some consumers feel that credit unions offer better services than conventional banks, it would be impossible to list all of them in a single article. However, one of the biggest reasons that credit unions consistently outperform conventional banks is the fact that they almost always charge much lower fees and rates for banking products and loans.
Credit unions are not for profit cooperative institutions - while banks are always designed to earn a profit for shareholders. Therefore, credit unions can usually concentrate on providing better service and lower prices for members of the credit union instead of always seeking a higher return on investment or a higher profit. In fact, in order to open an account with a credit union, you must first become a member, thus becoming an owner of the credit union.
Generally speaking, this type of business approach allows for much more personalized service for the member or account holder versus conventional banking services which are primarily designed to earn a profit for the bank. In fact, more and more Americans every day are leaving conventional banks and attempting to find credit unions for which they may be eligible for membership. If you're not yet a member of a credit union, you might want to check with your local Chamber of Commerce or simply search your Yellow Pages directory. Almost everyone is eligible for membership in one credit union or another, but it may require some research and diligence on your part to find the credit union that is best for you.
