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Industry News Credit unions now at higher risk for customer attrition 2010-08-05 A new study by the Pew Health Group found that last year's CARD Act has served to narrow the differences between the cards issued by banks and credit unions - a change that researchers say could lead to higher customer attrition rates at credit unions. The survey of various financial institutions found that in response to the act, both banks and credit unions had taken similar steps, including abandoning over-limit fees, increasing annual percentage rates and, in nearly every case, eliminating fixed rates. Analysts told the Credit Union Times that this smaller differentiation between the two, along with a significant increase in mail solicitations by banks, may lead to a fundamental change in how to prevent customer attrition at credit unions. "Credit unions need to start understanding that their cardholders are walking around with big targets on [their backs] and start managing them more efficiently," Bill Lehman, vice president of portfolio consulting services for the group Card Services for Credit Unions, told the publication. Credit unions have traditionally seen much stronger customer loyalty then banks. A study from BAI and Finacle earlier this year gave credit union customers a positive loyalty rating of 129, while regional and large banks earned scores of 92 and 66, respectively. 
Two More Words on Client Retention
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