Member Satisfaction With Credit Union Loan Service

By Jon Haller
Director of Market Research
Credit Union National Association

Credit union loan-to-share ratios are hovering around the 75% level, and loan growth is expected to taper off in 2005, according to CUNA Economics and Statistics, as interest rates rise and limited pent-up demand reduce members’ interest in obtaining loans.

Credit unions that stay on top of the competitiveness of their rates, fairness of their loan- granting policies, and quality of service provided by their loan staff, and make the necessary adjustments to better meet members’ needs stand to benefit during the expected slow-down.

CUNA Research’s Member Survey Benchmarking Database reveals that the ease of applying for loans at the credit union and the decision turn-around time earn recent borrowers’ strongest praise, with each registering borrower-evaluation scores of 4.2 on a 5-point scale, where 5.0 represents "much better than elsewhere" and 1.0 represents "much less than elsewhere." Credit unions earning the highest scores on these two loan factors recorded figures of 4.5 (see figure).

Where does your credit union fall? If you’re not sure, now may be the time to conduct your next member survey.

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