CHICAGO (9/3/14)--Credit unions are holding strong on their position as trusted financial providers in the latest Chicago Booth/Kellogg School FinancialTrust Index, released Tuesday.
About 60% of respondents said they found credit unions to be trustworthy compared with 30% for big, national banks, "which tend to be for-profit and invest in financial products that are unfamiliar to many Americans," the study's release said.
"It is not just because of the not-for-profit motive of credit unions," said study co-author Luigi Zingales. "People trust more local than national banks and trust more credit unions than local banks. The more local an institution is, the more trusted it is."
Zingales, a professor at the University of Chicago Booth School of Business, and Paola Sapienza, a professor at the Kellogg School of Management at Northwestern University, surveyed 1,014 financial decision-makers June 18-25 for this year's index.
The FinancialTrust Index also found that respondents were concerned with income and educational inequality. "While on average, the economy, the housing market, and the stock market are doing better, Americans fear that--because of income inequality--most of them will not enjoy the benefits of these improvements," Sapienza said.