Credit unions still lead in satisfaction, but warning signs emerge, J.D. Power finds.
New data shows declining satisfaction and rising account switching could challenge credit unions’ traditional advantage.
Credit unions continue to outperform traditional banks in customer satisfaction, but new data suggests that their long-held advantage may be beginning to erode.
According to a 2026 study released this week by J.D. Power, overall member satisfaction with U.S. credit unions remains significantly higher than that of retail banks. Credit unions scored 725 on a 1,000-point scale, compared with 657 for banks. Yet the credit union score declined by four points from the previous year, signaling a subtle but notable shift.
“Relative to other financial services providers, credit unions continue to deliver strong levels of overall member satisfaction, but the combination of rising levels of account attrition and a declining trend in member satisfaction should be taken seriously by credit union leaders,” said Dann Allen, senior director of customer solutions at J.D. Power.
The findings point to what the firm describes as a “soft switching” phenomenon, in which consumers maintain relationships with multiple financial institutions and gradually shift funds away from their primary provider. More than half of credit union members now hold checking accounts (59%) and savings accounts (56%) with other institutions, both figures rising over the past two years.
That trend reflects a broader shift in consumer behavior, as digital banking tools and fintech platforms make it easier to open and manage multiple accounts. For credit unions, which have traditionally relied on deep, primary relationships with members, the change could have long-term implications.
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The study also found declines in loyalty. The percentage of members who said they “definitely will” reuse their credit union fell to 71%, down two percentage points from last year.
At the same time, member experiences appear to be under pressure. More than one-third of respondents — 36% — reported incurring fees such as overdraft or maintenance charges in the past three months, an increase from the prior year. Meanwhile, understanding of fee structures has declined, with only 39% of members saying they fully understand how fees work, down from 44%.
Communication gaps may be contributing to the issue. Credit unions most frequently promote new products, features and special offers — areas that generate relatively low satisfaction. By contrast, topics more closely tied to higher satisfaction, such as financial advice and ways to save money, are communicated less often.
Despite these challenges, credit unions continue to perform strongly in key areas such as trust, service and flexibility. The study, which surveyed more than 10,000 members, evaluated institutions across factors including digital access, problem resolution and the ability to bank how and when members choose.
SchoolsFirst Federal Credit Union ranked highest in member satisfaction for a second consecutive year, with a score of 792. RBFCU placed second, followed by Navy Federal Credit Union.
For an industry built on member loyalty and community ties, the findings suggest that maintaining that edge may require renewed focus — not just on service, but on relevance in an increasingly competitive financial landscape.
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
