Banks, credit unions, you’ve probably asked yourself, what’s the real difference between them? And should I be switching to a credit union?
We've put together five reasons why you should break up with your bank and switch to a credit union today.
1. They have competitive interest rates
Credit Unions are owned by their members. This means all the money they make goes straight back into the organisation to improve their products and services, rather than in the hands of investors. By not needing to make a profit for investors, credit unions are able to offer competitive interest rates on their loans in comparison to the Big 4. Why put money in investor’s pockets when you can keep it in your own? The difference may seem small, but it all adds up.
2. They are trustworthy
In the current climate, we’re all feeling a little distrust towards the banking industry. As a result, we’re looking for financial institutions that we can trust. Factors such as multiple customer satisfaction awards and customer loyalty are all playing a big part in our decisions.
Members of credit unions are more likely to recommend their financial institution to their family and friends. The Net Promoter Score (NPS) is a great metric to gauge loyalty and advocacy from customers. Our NPS for example is well above the market average. This is something we’re extremely proud of as an organisation and are continuing to improve for our members.
3. They reinvest in members
At the heart and soul of a credit union is you, the member. Not only do credit unions invest in their products, they also invest in their members. Their profit improves business processes, upskills staff and educates members. They are working to better serve you, because you’re not just a customer, you’re a member.
This also means your feedback counts. What’s the point in releasing a new mobile application design or a new product without asking members if they like it? At People’s Choice, we do this by asking for feedback from our members through our Green Room community. By considering member feedback in everything we do, we are continuously investing in improving technology and services for members.
4. They are good for the community
Credit unions are made up of communities, because really, they are one big community. Credit unions use some of their profits to help local groups and charities in order to support and build stronger communities. In 2018/19, we contributed 4.7% of pre-tax profit to corporate community investment. This is six times more than the 0.72% average contribution made by Australian and New Zealand companies.
Not only do we help the community through contributions to local groups, we also refuse to invest in the fossil fuel sector, nor do we lend to companies in those sectors. Protecting our planet is important to both us and our community.
5. They work with you to achieve your goals
Members, and more importantly the relationship and service provided to their members, are at the core of a credit union. According to our last Green Room survey, 29% of our members believe customer service is what makes each financial institution different from one and other. As a member you’re a part owner which means working with you is paramount to our success.
So what are you waiting for? Make the switch today!