Unlocking the secrets to credit union success

How to be a top performer, even if you're not in the rankings

Photo by Andrea Piacquadio

North America's first credit union, Caisse Populaire de Lévis in Quebec, Canada, started its journey on December 6, 1900, when about 100 people signed a social pact and approved the co-operative's rules and by-laws. Founder Alphonse Desjardins, a reporter in the Canadian Parliament, embarked on this mission in 1897 after hearing about a Montrealer who had to pay nearly $5,000 in interest on a $150 loan from a moneylender. Desjardins not only turned a consumer problem into a business opportunity but also initiated an act of financial wellness that later became a defining characteristic of credit unions. 

Fast forward to today, there are more than 4,800 credit unions operating in U.S. and Canada, each catering to specific regions and focusing on their members' unique needs. Together, these credit unions manage assets exceeding $2.8 trillion.

Getting listed

In line with the multitude of lists that seem to permeate various aspects of life and business, credit unions have their own rankings. These lists traditionally factor in variables like assets, location, member satisfaction and more. However, what sets the lists we're about to explore apart is their focus on the 10 best credit unions in the U.S. and Canada. These institutions aren't in the limelight solely due to their size; it's their attributes like product selection, APY offerings, account fees and mobile features that have earned them a place on these distinctive rankings.

10 Best U.S. Credit Unions as rated by Bankrate.com

1. Quorum Federal Credit Union

2. Alliant Credit Union

3. American Airlines Credit Union

4. Bethpage Federal Credit Union

5. Boeing Employees' Credit Union

6. Connexus Credit Union

7. First Technology Federal Credit Union

8. Patelco Credit Union

9. Pentagon Federal Credit Union

10. VyStar Credit Union

10 Best Canadian Credit Unions as rated by Wealthawesome.com*

1. Vancity Credit Union (1st in BC)

2. Meridian Credit Union (1st in Ontario)

3. Servus Credit Union (1st in Alberta)

4. Conexus Credit Union (1st in Saskatchewan)

5. Steinbach Credit Union (1st in Manitoba)

6. Coast Capital Savings (2nd in BC)

7. Alterna Savings and Credit Union (2nd in Ontario)

8. ConnectFirst Credit Union (2nd in Alberta)

9. FirstWest Credit Union (3rd in BC)

10. Northern Credit Union (3rd in Ontario)

*Wealthawesome includes 15 credit unions from 5 provinces on their list. To be consistent with the U.S. list, I've included their 10 best.

What's common among these top credit unions is the key to their success: they make it easy for members to join with minimal restrictions. They offer fee-free products, with free checking and savings being the most common. They maintain low deposit minimums, provide high-yield accounts, boast extensive ATM networks, offer ATM fee rebates, ensure easy access to physical branches and provide mobile banking apps. Interestingly, this ease of joining is less of an issue in Canada, where closed bond or limited field of membership credit unions are much less prevalent.

Securing a spot in any list can be a formidable task, especially when you're competing against close to 5,000 rivals. However, when we explore the shared characteristics of these high ranking credit unions, it becomes clear that their features are far from unique or exclusive to billion-dollar credit unions. Features like free checking (or chequing in Canada), competitive rates, and comprehensive access to remote, physical and online banking services are not only readily available but also highly popular on both sides of the border.

Wellness for all

What's often overlooked, even by those who rank these institutions, is the presence of a financial wellness program. Defined by Meridian Credit Union, financial wellness encompasses the ability to meet financial needs, a sense of security about one's financial future, and the freedom to make choices that enhance life.

However, what matters here is the presence of such a program. It serves as an indicator of a well-thought-out strategy to engage with members and improve their financial situation and outlook. This approach holds significant importance for several reasons.

1. By actively offering and advocating for financial wellness through programs centered on financial literacy and education, credit unions evolve from simple financial product providers, competing with major banks based on rates and fees, to trusted financial advisors. This transformation involves gaining a deep understanding of their members, their unique circumstances, and their life aspirations, all while assisting them in reaching their financial objectives.

2. Strategies to engage members offer credit unions a higher likelihood of improving member loyalty metrics. In today's financial landscape, marked by the unbundling of financial services driven by new entrants such as fintechs and microbanks, maintaining an active and positive dialogue with members is crucial.

3. This approach benefits the entire community. It's not just members who gain; people across the credit union's trading area also benefit.

The synergy of these factors equates to good business in a way that aligns with the principles Alphonse Desjardin would have endorsed.

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Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.