Bank Customer Satisfaction Offers Challenge to Credit Unions

Customers are finding retail bank services more satisfying in 2017—so much so that banks hit an all-time industry high score on the American Customer Satisfaction Index that is close to approximating member satisfaction with credit unions. Historically, banks were once among the lower-scoring industries in the ACSI, but now they are in the top quartile for customer satisfaction.

In 2008, credit unions debuted in the ACSI with a score that nearly topped all other industries in the Index. At 84 on the ACSI’s 100-point scale, credit unions came in second only to personal care and cleaning products (85) and were ahead of retail banks by a whopping 9 points. Now 10 years later, retail banks score 81, trailing credit unions (82) by just a point.

Digital banking plays a strong role in helping banks meet their customers’ needs more efficiently. As mobile banking grows in popularity, customers choosing to use apps can have a satisfying experience—leaving more time for bank staff and tellers to offer a personal touch for those who continue to do their banking in-branch.

Size still matters when it comes to satisfying bank customers, and smaller community and regional banks continue to offer an experience that beats both super regional and national banks. With an ACSI score of 85, small banks are significantly ahead of credit unions as well.

Credit unions and smaller banks show similar ACSI results across key elements of the customer experience and for the most part exceed the performance level of the larger banking institutions. With more personalized service, small institutions score better than big banks for staff courtesy, transaction speed, account information, ease of making account changes, and competitiveness of interest rates. The exceptions are number and locations of branches and ATMs, where the scale of big banks comes into play.

As credit union membership grows, however, the industry may be struggling with maintaining the very high level of service that once set it apart from big banks. Looking at some of the touch points where small institutions typically shine, it is interesting to note that big banks are closing the gap to credit unions over the past two years. In 2015, for example, national banks trailed credit unions by 7 points for transaction speed, but this has lessened to 3 points this year. For staff courtesy, the gap between national banks and credit unions has gone from 5 to 3 points. A similar pattern prevails for both website and call center satisfaction.

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