The banking industry and credit card companies on the whole finish high on the list of worst industries for customer arrive. (Money Magazine 2012) Despite seemingly deteriorating reputations, banks have in fact been gaining consumer confidence. According to the 2012 American Customer Satisfaction Index (SACS), banks scored a 77 percent customer satisfaction rate – an increase of 2. 7 percent over the previous year. Credit unions – known for their outstanding customer service – have fallen in SACS rankings by 5. 7 percent to a score of 82 as of 2012. Nonetheless, out of all banking services, credit unions still rate better than banks.
Additional strengths of A MFC include: Members have fee-free access to over 25,000 Tams across the country through the CUE Anytime, CO-POP, and Bank of the West networks. Member growth has increased in the past 12 months. Big enough to handle most customer transactions yet small enough to personally respond to members (I. E. Restructure loans in cases of hardship etc. ). Wide variety of financial products. Loan delinquency rate is better than their competitors. Growth in loans and deposits outpaces peer groups. Smaller volume CUE is less likely to take unnecessary risks. Weaknesses According to the 2010 U. S.
Census Bureau, there are more than 95,000 bank locations marred to more than 7,000 credit union locations in the country. Due to numerous mergers, as well as the growing popularity of mobile and online banking, the number of physical branches is rapidly declining. Unlike banks, according to The Financial Brand Credit Union Industry Outlook, the total number of credit union branches has grown – increasing from 20,694 in 2007 to 21,433 in 2011 – with only the largest credit unions adding branches. A MFC has only two locations in Albuquerque and one in Farmington. Collectively A MFC has the third fewest number of CUE members in
New Mexico. Additional weaknesses include: Social media presence is entirely under-utilized. Rates not as competitive vs… Other NM Cuss for a number of loan types. Average SOOT For Credit Union By Teledyne me to stay there and explore. No Federal Bail-out money during economic downturns. New members must come aboard via SEG (Select employer groups). Limited advertising budget Limited collaboration with auto dealerships, builders etc. Opportunities The ability to bank online or through a mobile device is a necessity as technology becomes an ever greater part of our everyday lives.
Credit unions typically offer bare- bones online and mobile interface, which may sport an outdated look and functionality. Additionally, banking technology has evolved to include convenient features such as person-to-person payments, remote check deposit, and mobile payments. Although a MFC is making the effort to keep pace with new financial technologies, they are still trailing banks on this front. Consumer Reports (2012) compared average fees on common financial products and services between banks and credit unions and found credit union members (when charged) generally enjoy rower fees than bank customers.
As people grow increasingly frustrated with banks, MFC could capitalize on this frustrated customer niche to recruit and educate new members about the benefits of Cuss. While no lending institution is going to be careless with loans, community-based credit unions such as MUFFIN tend to be easier to deal with than megabucks and lending decisions are made locally with more flexibility.
Additional opportunities include: Social media presence should be expanded. A student loan option should be created (despite high default rates) to further attract youth.
Establish a youth council Incentive teen membership: Offer rewards for grades, community service, excellent driving record etc. Partner with some of the large teen employers like Din’s. A simple brochure or forms at the location could make it easy to open an account and do direct deposit. Expand growth in service reach to undeserved areas of New Mexico (I. E. Farmington branch). Plan a large scale celebration of 80 year anniversary in NM. (Founded in 1935! ) Expand strategic partnerships (such as: NM Animal Friends, Bike ABS etc. ) and Keg’s Train Mom’s to upsetting/cross sell products. Threats
Credit unions offer the same deposit guarantee offered by banks up to $250,000. Federal credit unions have their own insurance fund, which is run by the National Credit Union Administration, of NINJA. (The Street, 2011) Additional threats include: Industry regulatory changes Nine additional credit unions in NM! Some offering wider variety and lower rates for various products Economic stagnation/downturn. Diminished growth and wealth-distribution Fraud (and new types of fraud), Identity theft, cyber-attack/data breech Increasing operational costs (workers’ salaries, facility repairs, theft etc. ) Damaging media reports for A MFC or