Fostering member loyalty is something to which credit unions pay great attention. Credit unions are known for their superior customer service, dedication to their members and support for their local communities; these are a few of the core characteristics that sets them apart from banks. In a recent article published in the Credit Union Magazine, it was noted that,
" Small businesses that use a credit union are more loyal to their financial provider and exhibit higher levels of satisfaction than those that use a bank ... Small Businesses that use a credit union as their primary financial institution are also more likely to recommend their financial institution to family members or friends than small businesses that use a bank. " (Credit Union Magazine, March 2017 p.58)
Because credit unions' core values are focused on its members and the communities in which they reside, credit unions often times are able to take into account intangibles like community reputation and accountability. Understanding the value which a small business and its owners add to their community and their market, creates a distinct advantage for credit unions in building strong personal relationships with their business members. Personal relationships are key to fostering loyalty, especially with small businesses!