As noted in the accompanying article, community banks and credit unions are well-positioned to gain market share from their larger counterparts in today’s turbulent economy.
Per Frank Aloi of ath Consulting, “Based on the findings of the 2011 ath Power Ideal Banking Study, customers at community banks and credit unions have the highest banking experience satisfaction levels and are far more likely to recommend their financial institution to other people compared to customers at their larger competitors, who actually saw a drop in their ratings since 2010. Additionally, across 2010 and 2011, approximately 50% more customers at the Nation’s top-20 banks rate themselves as ’likely to switch banks’ compared to community banks and credit unions.”
These findings mirror similar research from Mercator Advisory Group, which found that credit unions, in particular, hold a solid second place behind full-service banks in the share of primary relationships.
Adds Frank Aloi, “These results show us that smaller institutions are now well positioned to be successful in this fragmented financial services market. This is an opportune time for them to take the initiative and sway potential customers of their larger competitors to join their community bank or credit union. Tactics for achieving these gains include marketing, advanced products and loyalty programs.”