What is a credit union? Each organization has their own terminology to describe what they provide to members, much of it similar to other credit unions. There's the standard definition: credit unions are member-based, not-for-profit co-operatives providing financial services. But, what is a credit union? This in fact is probably one of the most difficult marketing challenges credit unions face today.

With so much competition from community banks, larger-national banks as well as other credit unions, consumers still don't necessarily understand the difference between a bank and a credit union. If consumers really know what a credit union is, why wouldn't they become members? What's more, if they do grasp the meaning of what a credit union is, they may not necessarily understand many credit unions have broad fields of membership.

Then, there is the convenience-factor. It is perceived as a hassle to change financial institutions and credit unions need to be better at not only promoting the simple switch, but at proving that there's long-term benefit in doing so. Another convenience-factor is the misperception that few credit union branches means there is lack of access to funds. In fact, with shared branching there are more ATMs and access to funds than some banks. Helping potential members understand this point will help increase the yield of new members.