Survey: Georgians Value Their Credit Union
Thursday, October 8th, 2015
Georgia consumers value their credit union membership, according to a Mid-Year 2015 Membership Survey by the Georgia Credit Union Affiliates.
Of those surveyed, 87 percent said they encourage their friends and family to use a credit union. So, what is the appeal over banks at these not-for-profit financial institutions?
When asked what respondents value about their credit union, 74 percent of participants said they are treated like an owner rather than a customer. Fifty eight percent said they value the lower interest rates on loans, 35 percent note lower fees on credit cards, 30 percent said it's the higher interest return on accounts while 22 percent said it's the lower mortgage fees.
Because of these benefits, credit union memberships continue to grow. According to CUNA Mutual Group's Economic and Credit Union Monthly Update in August, credit union membership growth will continue in 2015 and 2016 due to strong U.S. job growth. This is expected to push the total number of credit union memberships to 104.5 million by year end 2015, which is equal to 33 percent of the total U.S. population.
In Georgia, consumers recognize the value of credit union membership. While Georgia memberships surpassed the 2 million mark last year, total memberships in the state's credit unions grew by 1 percent in the second quarter of 2015 and 2.1 percent in the first six months of 2015 - boosting the membership mark to 2.1 million.
Insider's Perspective:
"Personal service is the game changer," said Augusta Metro Federal Credit Union President and CEO Sherry Saxon. "Oftentimes, we get to know our members on a first-name basis. And what they say matters, whether it's in regards to applying for a loan and needing to explain their credit situation, or suggesting new products or services - we listen. This is their financial institution and whether they have five dollars or five million, we treat them all the same."
Saxon said a main difference between credit unions and large, for-profit financial institutions is rapport.
"Our members love to be able to speak to people who are local and they value the personal touch they receive at our credit union," Saxon said. "Members love being called by their name and the staff enjoys developing relationships with them."
Benefits of credit union membership include:
Commitment to Service - Credit unions continue to receive the highest marks in the financial services sector for excellent service.
Convenience - Credit unions offer the same conveniences with mobile and/or online options and easy nationwide access through shared branching.
Federally Insured Deposits - The National Credit Union Share Insurance Fund (NCUSIF) insures members' deposits up to $250,000.
Free Checking - A majority of credit unions still offer free checking accounts.
Higher Saving rates - Credit unions have fewer expenses than most banks, which enables them to reward and attract members with higher rates on saving accounts.
Lower Loan Rates - Credit unions offer the same lending products and services as banks, but usually with more attractive rates.
Lower Fees - Credit unions typically have lower fees than for-profit financial institutions.