Forbes’ CU and Bank Ranking: CUs Beat Banks, CUNJ Ranked #3 in NJ

Forbes recently partnered with market research firm Statista to produce its first-ever Best-In-State Banks and Credit Unions ranking. In total, 124 banks and 145 credit unions made the final cut, equaling 2.4% of U.S. financial institutions. Credit unions outpaced banks with an average score of 80 versus 75.2 for banks. Customers also rated CUs higher than banks: 4.42 for credit unions and 4.24 for banks, on a scale of 1 to 5.

In the state-by-state ranking of credit unions, Credit Union of New Jersey came in at #3 for New Jersey.

Forbes rated the banks and credit unions on overall recommendations and satisfaction, as well as five sub-dimensions (trust, terms and conditions, branch services, digital services and financial advice).

According to the research, customers also give their FIs high marks, with a general satisfaction rating of 4.42 for credit unions and 4.24 for banks, on a scale of 1 to 5.

“Customers prefer credit unions because they themselves are the shareholders,” says Statista CEO Friedrich Schwandt. “This is somewhat in keeping with the motto ‘Small is beautiful.’”

Nationwide financial institutions like Bank of America, Wells Fargo and Chase Bank, which have branches in at least 15 U.S. states, were excluded from the final rankings. Ten other national banks were not considered for that reason, including U.S. Bank, PNC Financial and Bank of the West (B of A, Wells and Chase all rated lower than most of the “small” banks). Navy Federal Credit Union (30 states) was the only credit union eliminated for its reach.