Credit unions once again beat banks in new member/customer service ratings released by Forbes.
Credit unions earned an average score of 80 versus 75.2 for banks in Forbes’ first-ever Best-In-State Banks and Credit Union Ratings.
Respondents also offered a satisfaction rating of 4.42 for credit unions and 4.24 for banks, on a scale of 1 to 5.
“Customers prefer credit unions because they themselves are the shareholders,” says Friedrich Schwandt, CEO of Statista, a market research firm that Forbes partnered with to produce the ratings. “This is somewhat in keeping with the motto ‘Small is beautiful.’”
Credit unions benefit from their nonprofit status, which typically allows for higher interest rates on CDs and savings accounts, as well as lower rates on loans and credit cards, the report says.
Instead of gauging the balance sheets and profit and loss statements as Forbes does for its ranking of the 100 largest banks published annually in January, Statista surveyed more than 25,000 customers in the U.S. for their opinions on their current and former banking relationships, according to the report.
Banks and credit unions were rated on overall recommendations and satisfaction, as well as five subdimensions (trust, terms and conditions, branch services, digital services and financial advice).