Report Ranks Michigan CU Among Most Stable Brands (Misc News: December 8, 2011)
A new ranking of the top financial institution brands finds the credit union industry to be highly stable, and puts a Michigan CU near the top of the list.
Meanwhile a survey finds that credit unions still score higher in customer satisfaction when compared with the banking industry.
The Bancography Brand Value Index is a measure of the strength of all U.S. banks and credit unions based on tangible factors such as capital base and strong earnings, as well as intangibles such as reputation, service quality, image, and market awareness.
This year, Lake Michigan CU is ranked seventh in the nation among credit unions with assets of more than $1 billion, up from its 13th place ranking in 2010.
Overall, Bancography, a positioning firm from Birmingham, Ala., said this year’s results reflect the overall stability of the credit union industry. Nineteen of the top 25 large credit unions made a repeat appearance from last year’s list. In contrast, the rankings for commercial banks saw “widespread changes” from last year, according to the report.
The results also seem to indicate improvements within the industry when compared with the 2010 credit union rankings, where only nine institutions repeated their top-25 positions from the previous year.
For the second year in a row, Texas-based Austin Telco FCU is ranked first among the largest credit unions.
To see the complete list of rankings for 2011, click here.
In the Bank and Credit Union Satisfaction Survey, Prime Performance advises credit unions and banks on improving the client experience. This year’s results show that members are more satisfied with credit unions and banks, and less likely to switch banks than in 2010.
Credit union members rate their overall satisfaction with a net score of 89 percent, according to the survey. The comparable score for large banks is 80 percent. While the survey results are mainly positive for credit unions, it does reveal that banks have made significant progress in creating a more satisfying experience for younger customers, according to Prime Performance President Jim S. Miller.
The industry average net satisfaction score increased 5 percent over 2010. Chase and large banks increased faster than the industry rate, at 12 and 6 percent, respectively. Increasing slower than the industry rate were Bank of America at 3 percent, and credit unions, small banks and Wells Fargo, all at 2 percent.
Miller told CUNA News Now "While credit unions and community banks enjoy high satisfaction and customer loyalty, their larger competitors are closing the gap, especially with younger customers." He further cautioned that "If small banks and credit unions don't live up to customer expectations and provide a more personalized service, they run the risk of losing their service advantage."