Market Insight: Why Kiwis Are Switching to Member-Owned Banking

A recent consumer and member survey has revealed a significant shift in the New Zealand financial sector. A growing number of Kiwis are actively moving their accounts from traditional banks to member-owned institutions like First Credit Union. This trend is driven by a demand for greater value, transparency, and a more personal connection with their financial provider.

The Primary Drivers 

A recent independent survey by Versus* provides clear evidence of what New Zealanders are looking for. When presented with the member-owned credit union model, respondents identified key advantages over traditional banks:

• 49% cited member benefits (e.g. profit-sharing, better rates) as a key advantage.
• 45% highlighted lower fees as a major drawcard.
• 32% valued the ability to be involved in important decisions.

This data confirms that the core principles of credit unions directly address the primary pain points customers have with profit-driven banks.

Deep Dive: What Different Savers Value

The survey findings go beyond the top-level numbers, revealing how different segments of the market prioritise these benefits:

• For Cost-Conscious Consumers: The data showed that couples and credit card holders were significantly more likely to prioritise lower fees. This indicates that those actively managing household finances and debt see credit unions as a financially smarter, more efficient choice.
• For Community-Focused Members: Perhaps most tellingly, existing First Credit Union members placed an even greater emphasis on local community support. For them, the value extends beyond their own wallet; their loyalty is directly tied to the credit union's positive local impact. This proves that once people experience the member-owned difference, their appreciation deepens to encompass both personal and community benefits.

The Bottom Line: A Strategic Shift in Banking

New Zealanders are seeking financial partners that offer not just convenience, but also fairness, transparency, and a shared sense of purpose. The survey data validates that the member-owned model is no longer a niche alternative - it is a real alternative for a growing number of Kiwis.

Ready to join the shift?

If the survey findings resonate with you, it’s time to experience the First Credit Union difference. Enjoy the full convenience of modern digital banking, backed by a model designed solely to work for you.  Switching might seem daunting, but it’s easier than you think. Here’s your step-by-step guide to making the move stress-free.   

*Survey was conducted by Versus, a Waikato based evaluation and research company on behalf of First Credit Union in 2024. Market sample size for this research was 593 and 113 from the First Credit Union membership.