MADISON, Wis. (9/25/15)--The Filene Research Institute has released a series of reports that investigate why credit union members prefer a certain financial institution in making loan choices.
“Loan drivers: Why members choose banks over CUs” offers a product-level breakdown of drivers and takeaways of the loan shopping process. Recognizing that different loan types come with different drivers, the series examines first mortgages, refinanced first mortgages, second mortgages, home equity lines of credit (HELOCs), new-auto loans, used-auto loans, and personal loans.
Among the common themes that emerged from the research:
The research is based on interviews with 5,619 current credit union members regarding their credit union, competing credit union, or a bank. Respondents were asked to select the attributes that played a role in their decision-making process from a list of roughly 40 choices. The factors were then narrowed and ranked in order of importance.
The research explores: (1) how members form a consideration set, (2) how much time they typically spend shopping for a loan, (3) their preferred source of loan information, and (4) the most important drivers of loan selection.