Credit unions versus banks. An age-old topic of discussion. But which one is truly better? And whose opinion really matters when it comes to this subject? As someone with experience in both the banking world and credit union world, I’d like to consider myself an expert on the topic. Prior to my career shift to a CUSO in 2022, I was previously employed at a bank. With my six-year tenure at the bank, and my two-year experience working for and with credit unions, I have a vast knowledge of the differences between the two. I even switched my personal accounts from a bank to a credit union because it better suited my financial needs.

However, I noticed that people tend to be less familiar with credit unions than they are with banks. Is that because credit unions are keeping their best traits a secret? And if so, why? Are they so busy trying to compete with banks that they forget to market what makes them different?

As someone making the leap from banks to credit unions, here are a few of the things that make credit unions stand out from banks that credit unions may not be marketing.

Interest rate transparency

A common conversation I had with customers while working at the bank was about loan rates. One of the most memorable days I had at the bank was when I quoted twelve loans and in turn, took in that many applications. While writing this article, I really wanted to dig into why I had to frequently quote loan rates.

That’s when I discovered another difference between credit unions and banks: rate transparency. I fired up Google, typed in “banks near me,” selected ten, and went on a search for rates. I was shocked to see only one of the bank’s websites stating they offer “personal loans as low as 7.49% APR.” Well, I couldn’t just stop there. I had to put credit unions to the test. I searched “credit unions near me” this time. Lo and behold, I found rates on every. Single. Website. Some of them even had their own loan rate page.

What’s the takeaway? Do you have your rates posted on your website? If not, why? Why make your members (or potential members) work harder to get the information? It’s much easier for a consumer if you have your rates laid out online. Not doing so, could be the difference between gaining a member or losing one.

Rate transparency could be the very reason a potential member decides to join your credit union instead of a competitor. As a consumer, I know I’d much rather go with a financial institution that is transparent in all areas, including loan rates.

Shared branching

When it comes to the accessibility of money, credit unions will always take the cake. Shared branching makes it easy to access your money from almost anywhere in the United States, and depending on the network, internationally as well.

Being a part of a bank means members are limited to transactions they can do at an ATM that does not belong to their financial institution. These limited transactions can include withdrawals and balance inquiries. Most deposits must be made either in person or at an ATM owned by the financial institution.

Those who offer shared branching do a great job noting the service on their website, however, this information is often hidden under several menus, and only a few provide details on what shared branching entails and how members can locate ATMs within the credit union’s shared branching network. Don’t keep this information hidden away! Market it prominently on your website for potential members. In fact, shared branching was a key reason why I switched my personal accounts from a bank to a credit union, and it could be for others too.

If you don’t offer shared branching, I would highly recommend hoping on the trend as this could be another reason why a potential member decides to join your credit union.

Credit union boards versus bank boards

Credit union boards and bank boards are completely different. We all know that credit union board and committee positions are all volunteer positions and not for profit. This allows member voices to be heard and decisions are in turn made in favor of the members. A bank’s board of directors, however, is made up of stockholders. In a sense, the board “owns” the bank, so the decisions they make are for the benefit of the board, not the members.

But most potential members don’t realize that, unlike banks, credit unions answer to and are owned by their members, and they can get involved in the process as well.

After my search for loan rates, it was time to look for information relating to a credit union board. I again chose ten credit unions and searched their websites. Of the ten, three had their board members listed, two had annual meetings and report information, and four had no information about their board. This means that only one credit union had a dedicated page that allows a member to submit a form and inquire about becoming a board member. I was shocked, to say the least.

But I’m not the only one. Melissa Fulgenzi had a similar outcome in her search for information on credit unions and board meetings, and Emily Claus notes that often this lack of information comes from credit unions assuming their members are aware of “the obvious.”

As a member of a credit union, I think it is beneficial to market the credit union board, board meetings, and annual meetings. This would give an opportunity for members who may usually not be involved to inquire and ask questions about the credit union board.

Making those secrets not-so-secret

The number of differences between credit unions and banks is quite substantial. I believe it will always be a huge topic of discussion. Rate transparency, shared branching, and credit union boards are just a few of credit unions’ best-kept secrets. Those barely scratch the surface. But why are we keeping our best marketing tools as secrets?

I encourage you to do your own research. Really dive deep to figure out what you currently offer that may draw more members, whether that be products, services, or rate benefits. Ask yourself this; if I were a potentially new member, why would I pick this credit union over the other guy?