Credit unions and building societies No. 1

22 November 2006

An independant survey conducted by Smart Investor magazine has found that credit unions and mutual building societies have the highest level of customer satisfaction of any financial institution.

The annual Smart Investor League of Exceptional Service (SMILES) Survey, published in the magazine’s December issue, found that credit unions and building societies had an average score of 83%, up from 76% in 2005.

In reporting the result, the magazine stated that “big banks still have much to learn from not-for-profit, community-based credit unions and building societies”.

The magazine reports that while banks have lifted their satisfaction scores, “they are still the institution most of you say has been responsible for your worse customer experience”. The magazine goes on to state that “small, niche organisations with a targeted customer base” have achieved the highest score, “a result that will worry larger financial conglomerates”.

General Manager of Abacus – Australian Mutuals, the peak body for credit unions and mutual building societies in Australia, said the SMILES Survey results reinforce the findings of other research.

“Nielsen Media Research found in June 2006 that an average of 94% of credit union and building society customers were either satisfied or very satisfied with their financial institution,” Mr Lovney said.

“In both surveys, our customer satisfaction has risen in the past year while satisfaction with the major banks fell.

“As mutuals, credit unions and mutual building societies are 100% focused on the needs of their customers and not on generating profits for external shareholders.

“Recent record bank profits show where their priorities lie.”

For more information:

Julie Sheather
Senior Adviser – Media & Public Affairs
(02) 8299 9024; 0409 514 643