MADISON, Wis. – Nearly 25 percent of individuals who have credit union products do not identify themselves as credit union members and more than half of non-members believe credit unions have limited locations, services and products, according to findings in CUNA Mutual Group’s annual TruStage® What Matters Now™ consumer research report.
The report, issued Friday at CUNA’s Marketing and Business Development Council Conference in San Antonio, uncovered key insights into non-member consumers, and those who fall along the member continuum. The research highlights opportunities for credit unions to better engage with subsets of existing members and non-members.
“We were surprised by the number of credit union members who don’t actually identify themselves as members,” said Susan Sachatello, senior vice president of TruStage, CUNA Mutual Group's consumer brand. “Our research gives credit unions insight into the lifestyles and attitudes of both non-members and under-engaged members to help them identify new approaches to meet their needs, challenge their misperceptions about credit unions and motivate them to consider making the switch to a credit union.”
The research identified three distinct sets of consumers, or opportunity segments, for credit unions to pursue:
- Partially-engaged members: This group recognizes they have a credit union relationship, but don’t see the credit union as their primary financial institution.
- Disengaged members: These individuals are credit union members, but don’t perceive themselves as members.
- Non-members: This segment has no credit union affiliation.
According to Sachatello, these groups all represent different consumer mindsets and have distinct needs, behaviors and perceptions of credit unions. “It’s important that credit unions understand these groups individually, so they can reach each audience where they are, with the right message, at the right time.”
- Consumers within the opportunity segments are younger and more racially diverse than engaged members—and so are new members. The opportunity segment population was more likely to be a millennial or from a race other than Caucasian. This group also puts a high value on brands that reflect their cultural identity, and are more likely to choose a financial institution based on a personal recommendation.
- One in four individuals with a credit union product do not identify as a member. Of the individuals who don’t identify as credit unions members, approximately one-third have a savings account with a credit union, more than half have a credit card and/or checking account and close to 20 percent have an auto loan.
- Disengaged members worry about financial stability more than any other group. Fifty-four percent of disengaged members worry about their family’s financial stability on a daily basis – more than engaged members (45 percent), partially-engaged members (41 percent), and non-members (43 percent).
“Tapping into how consumers identify their credit union relationship presents an opportunity to reach and serve them in a compelling manner,” said Sachatello. “At CUNA Mutual Group, we're committed to continually learning about consumers. By listening to them and sharing our findings with credit unions, we can make it easier for credit unions to help their members plan, protect and invest in their future.”
To learn more about non-members and the opportunity segments, and how credit unions can best attract, retain and engage these groups, visit www.cunamutual.com/whatmattersnow. Or, view our infographic and short video.
Protecting more than 18 million members, TruStage insurance products and programs include auto, home, life, accidental death and dismemberment and health insurance. They’re available to credit union members across the U.S. helping build financial security for their families. Credit union members seeking more information can contact TruStage at 888.888.0375 or learn more at www.trustage.com.
TruStage Insurance products and programs are made available through TruStage Insurance Agency, LLC and issued by CMFG Life Insurance Company, a member company of CUNA Mutual Group and other leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold or guaranteed by credit unions.
About CUNA Mutual Group:
CUNA Mutual Group helps people plan, protect and invest for their future – regardless of their financial standing. The company was founded more than 80 years ago by credit union leaders who were looking for an insurance and investment partner they could trust. Today, CUNA Mutual Group helps credit unions and hardworking Americans build financial security through commercial and personal insurance products; lending and payment security solutions; and risk management, retirement, investment and marketing services. Additional information about the company can be found at www.cunamutual.com.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company and MEMBERS Life Insurance Company. Corporate headquarters are located in Madison, Wis.