Why the Credit Union May Be the Perfect Form for a Financial Institution

Credit Unions

Oct 25, 2023, 20:25 ET


Written By Matthew Preuss

Pick up any trade publication aimed at the credit union space, and you'll find plenty of love letters to these institutions. If you know anything about the financial services business, it's easy to see why.


While every financial institution is a business enterprise and lives or dies by its ability to generate a return on its assets, the credit union didn't start out of a desire to generate a financial return. These institutions were founded to meet a need in the communities they serve.


Initially, many of these communities were groups of co-workers who needed a better way to manage their money and borrower against new homes and cars.


Many of these love letters are written by vendors who want to provide products or services, and we understand that. But we have our own reasons for loving these institutions.


Three reasons credit unions are great financial institutions

We've been working with credit unions for many years, providing a range of risk mitigation and outsourced risk resolution services. We now enjoy strong relationships with many of these institutions, which has led us to the following conclusions:


  1. They understand their customers because they are their customers

Member-owned means something in the credit union industry, and you can feel it in every transaction. Maybe it's their non-profit status or something that carries over from their inception, but they don't look at the people entering their branches the same way other institutions see their customers.


For years, people have been trying to quantify this. To isolate the secret sauce that sets customer service in the credit union apart from and ahead of others in the space.


But the difference is easier to see when a member gets into trouble. While we now offer a range of products and services for the auto lending and appraisal teams within the credit union, our core services are in the default servicing department.


It's the way credit unions treat members who get behind or fall off track that really sets them apart. When they contract with NCCI to hand-deliver an offer of support letter to one of their members, they know that our professional team of field services professionals will handle every encounter with compassion and respect.


  1. They pursue member satisfaction ahead of institutional growth

Over the past few years, financial services companies of all kinds have seen the value in providing better customer satisfaction, but this is something that has been a high priority in the credit union since they were founded.


For credit union executives, member satisfaction isn't a nebulous metric that can only be measured in terms of the institution's growth. It's a very clear measure of performance that is not tied to growth at all.


That translates to more affordable services because they know if they can offer a member an AVM valuation NCCI derived from one of the top-ranked algorithms on the market, they may be able to save them the cost of a full appraisal. That yields a more satisfied member.


  1. They understand loyalty and the importance of relationship

Unlike some other types of institutions we serve, where the value is often delivered in the volume of work they order, credit unions create value through loyalty. We know that if we serve a credit union well, we'll have a relationship that lasts for years.


We know this because we provide credit unions with portfolio valuation and monitoring services. They buy them because they want to know what's going on with their members' assets to better inform the offers they send them. It also informs them when a member puts their home up for sale, giving them the opportunity to reach out and keep that member from going to a competitor. It's a great way to maintain and deepen a relationship with the credit union member.


An institution that goes to those lengths to take care of the people they are in business with makes them a great partner for anyone lucky enough to serve them.

Privacy Policy & Statement

The content of this website is fully and only intended for general informational and educational purposes. If you visit our website, we may collect general information about the way in which you use our site, including the time and duration of visit, IP address, browser type and version, operating system, device type, the website URL or web page that referred you to our site, your path through our site, and in site traffic patterns. We may use this information to identity levels and areas of interest to improve, refine and enhance user informational experience of our site, operational maintenance of our site, or as may be legally required.

If you provide information through this website, either in a form on this website or by sending us an email, we may collect and use that information to contact you if you so request.

We do not sell, rent, trade, or give away any information collected, including but not limited to, personally identifiable information (Personal Data) provided by visitors to our site, to any third party.

Terms of use

Informational Purposes Only

The content of this website is fully and only intended for general informational and educational purposes.

Proper Use

You agree that your use of this website at all times will be for informational and educational purposes only. You further agree that your use of this website will at all times be proper and lawful. You agree not to attempt to gain access to non-public areas of this site or to files, servers, or other data belonging to NCCI by “hacking” or other unauthorized means. You agree not to damage or disrupt the operation of this website by any electronic or other means.

No Guarantees, Warranties and Limitation of Liability

NCCI makes no guarantees, warranties, representations or claims with respect to any of the information or content on this website. Any testimonials or endorsements contained in the website do not constitute a guarantee, warranty or prediction regarding the outcome of any transaction. NCCI will make every effort to maintain current information on this website, but does not guarantee the currency, accuracy or completeness of the information. Information and content on this website are provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of suitability, reliability, applicability, merchantability, fitness for a particular purpose, non-infringement, result or outcome. NCCI reserves the right, but has no obligation, to add, change, improve, and/or update the information and content on its website without notice or liability to you or any other person.

You use this website at your own risk. NCCI assumes no liability or responsibility for any errors or omissions in the information and content of this website. NCCI denies responsibility and liability for damages incurred as a result of your access to or use of information on this website, including but not limited to, liability for damages under contract theories, tort theories, or any damages caused by viruses or other malware contained within electronic files of this website or any linked site, regardless of prior notice to us. Under no circumstances and under no legal theory shall NCCI, its owners, its shareholders, its attorneys, its employees, its contractors, its agents, its suppliers, its vendors, or any other party involved in creating, designing, producing or delivering this website’s information and content be liable to you or any other person for any alleged direct, indirect, special, incidental, consequential damages of any character or kind arising from your or anyone’s access to, or use of, this website.

Intellectual Property Rights

All copyrightable text, graphics, imagery, illustrations, icons, logos, photographs, video clips, written materials, software, interfaces, code, the selection, arrangement and presentation of all materials and content on NCCI’s website, and the overall design of this website are protected under copyright and trademark laws and are the copyright, trademark, trade dress, intellectual and/or proprietary property owned, controlled or licensed by NCCI at © 2023 NCCI. All rights reserved.

You may use the materials and content on this website for personal informational and educational purposes only. Permission is granted to download, copy, and print materials from this website and you may send, forward, and transmit this website in hyperlink form for the purpose of viewing, reading, retaining, and educating for informational reference. Any other copying, distributing, displaying, retransmission, or modification of information, content or materials on this website, whether in electronic or hard copy form, without the express prior written permission of NCCI is strictly prohibited.


You agree to indemnify NCCI for any and all damages or harm caused by your violation of these Terms of Use. You further agree to defend, indemnify, and hold harmless NCCI, its owners, its shareholders, its attorneys, its employees, its contractors, its agents, its suppliers, and its vendors from any and all third-party claims, demands, damages, losses, costs, attorneys’ fees and expenses resulting from your violation of these Terms of Use. You agree that the exclusive venue for any litigation alleging a violation of these Terms of Use shall be the courts of State of Nevada, ______ County.