BOSTON (8/15/08)--Consumers’ trust in their primary financial institution is directly correlated to wallet capture--and credit unions are doing well, indicates a study released this week. Credit unions are outperforming banks in rates, fees, pricing, products, reliability and engagement, according to the study, by Mercatus LLC, a financial services consulting firm (MarketWatch
Aug. 13). The average wallet capture share for financial institutions increased by 18 percentage points on a five-point scale, from 34% at a trust score of 1, to 52% with a trust score of 5, the study said. Trust relationship scores for credit unions and banks ranged from 64% to 84%. Credit unions and local banks scored higher in transparency than other financial institutions at 75%, compared with national banks’ average score of 63%. Factors affecting trust include transparency of costs, employees’ willingness to go “above and beyond,” and operational processes clarity. Trust also drives retention and cross-selling. To build trust, the study said financial services providers should:
* Disclose fees for products and services; * Explain steps to open new accounts or address service issues; * Ensure safety of members’ information; and * Maintain fees at levels members expect.