Where Are the Credit Unions?
Banks are in trouble. They screwed up bad. Customers are pissed off.
But credit unions are community-owned, non-profits that are happy, healthy, and provide all the same services.
This is one of those rare moments in history when entire markets are shifting. If credit unions were doing a decent job of marketing, they could grab a massive percentage of the market from banks. Think iTunes vs. CD sales.
But I haven't been asked to switch. I haven't seen an ad. I haven't seen a news story comparing failing banks to thriving credit unions.
My advice to the credit unions: drop everything you are doing and start marketing. This is your moment. You will not have another opportunity like this in your lifetime.
Did you know this?
1. Voluntary Membership Credit unions are voluntary, cooperative organizations, offering services to people willing to accept the responsibilities and benefits of membership, without gender, social, racial, political or religious discrimination.
2. Democratic Member Control
Cooperatives are democratic organizations owned and controlled by their members, one member one vote, with equal opportunity for participation in setting policies and making decisions.3. Members' Economic Participation
Members are the owners. As such they contribute to, and democratically control, the capital of the cooperative. This benefits members in proportion to the transactions with the cooperative rather than on the capital invested.4. Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members. If the cooperative enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the member and maintains the cooperative autonomy.
Originally posted at Andy Sernovitz's Damn, I Wish I'd Thought of That.
Loading comments…
Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to
Credit unions in my local area tend to have better rates than the big banks. When I refinanced in 2007, a big bank (that shall remain nameless but has taken bailout $$) tried to hang on to my business. They asked what rate I was being given to see if they could match it. When I gave her the information on the rate and points offered by the credit union, the lady said: Well, credit unions don't have to pay for the things we do".
Yeah, credit unions do not have to pay for things like big executive bonuses, marble floors, Lear jets, dividends. I can live with that.
One other item. Credit unions work together for their common good. For instance did you know that many credit unions share their branches with each other so that members of one credit union can go into a different credit union and transact on their home credit union accounts? In fact they now have over 3600 branches in this nationwide shared branching network! Talk about member convenience without the additional carbon footprint of every credit union building new branches. You won't see banks doing this.
I have been working at NYU for 30 years. I became a member of NYU Credit Union several years ago. At first I had only savings account, set up bi-weekly $50 payroll deduction. I was able to save money that way.
For the last 2-3 years NYU Credit Union improved very much- now they have a free seminars, online banking, Free ATM's, online bill payment. I refinanced my car loan with them and transfered my credit card balances. They have a great rates on car loans and the rate on credit card if fixed!
Recently I closed my checking account at CitiBank and opened free checking account with my payroll direct deposit with my Credit Union.
I am very happy with them!
I dumped BOFA for a Credit Union about 6 years ago because their outrageous fees were driving me insane, and I've never been happier.
Got a reasonable rate on my car loan - I love my credit union.
Hey it's the internet age you just need to do your own googling to find a CU that fits you AND you can easily locate NO FEE ATM's where ever your travel. I gave up a bank long long ago, they nickel and dime you any way they can. Even the B of A heiress hates the way her grandfathers bank works now, she needs to start or join a credit union that would be a real kick to the banking industry.
Credit Unions are doing smart things such as making deals with intelligent humans such as Nobel peace Prize winner Muhammad Yunus and Grameen America...
I just received notice that my credit union is being assesses over $8,000,000 as it's share of LOSSES incurred by all credit unions. They are not immune from this crisis.
Except for the fact that credit union members do get a "dividend" at the end of the year, rates and services are on par with local banks.
Like so many things...c
Credit unions do currently hold a small share of the market and their small size makes it more difficult to offer every single thing that the larger banks do. (Economies of scale) However, there are larger credit unions in each state that can and do offer all of the services a bank offers. And as far as customer service on the whole you will have much better customer service at a credit union than a bank. Their customers are part owners. If you got bad service you should speak up to get the issue resolved. Credit unions protect the rights of the member first and foremost. Would-be profits are not given to CEO's as bonuses they are returned to the members in the form of higher savings rates and lower loan rates and fees. CEO's go to D.C. to talk to congressmen in efforts to try to protect their member's rights. Also, as credit unions grow and get more members they are able to offer more. So yes it does require patience to wait for services to be added but what do you expect from something that you own. And again if you need/want something from your CU, TELL THEM. Trust me they will be much quicker to respond than a large bank.
I have closed by Chase credit card and opened up a credit card at the credit union where I bank. Why did I have a Chase card in the first place? (It was a marketing advert via AARP)
Why do you need a credit card to begin with? Got no cash at hand?
:-)
You need something to hold a hotel and rental car reservation.
Often it is a combo credit/debit card-it's VERY VERY convenient, functions as a debit card when you need one or a credit card when a business won't take a debit and you can use it like the other comment said about car rental and lodging reservation.
On a personal note: My university's CU is rarely able to match service or loans available on the open market. Many times I 've experienced instances of bad service.
Certainly, compared to BAs and Washington Mutuals of this world, CU is a less stressful experience.
But smaller in size (comparable to CU) banks often outperform CUs.
I disagree. I've a member of several CUs and deposited in banks large and small. The last one standing for me is a university CU. Clearly it doesn't have the quantity of ATMs scattered around the City with secure kiosks but they are adequate once you learn their locations often in McDonalds. The CU has online banking that matchs or betters big banks and when you call, a person answers the phone. It's the personalized service is the CU's most attractive feature IMHO especially after being burned several times by the mega BofA.
Hmmm... credit unions have less than one tenth the total asset size of banks. They don't solve anything in the current situation. But they do like to go south just as well:
http://www
I work for a CU, so I can safely say that Credit Unions DO advertise. Ask our Marketing department!! That said, I hate to say it, but it is not true that Credit Unions are necessarily stronger in this climate. Scores of them have gone under in the last year (mostly for the same reason as banks - real estate loans). Then there is the matter of the "Corporate Credit Union Bailout" that could kill off even more credit unions http://www
To bachroxx
I used to belong to a credit union and liked it a lot. I never had a check bounce. I never went over my limit. When I went to close my account I was told that I couldn't close it for 60 days. Apparently, they have some concern about credit card purchases. I was issued a credit card but never used it. They still refused to let me close my account. I told the teller that I would be back in 60 days and I wanted to withdraw the money in my account and close it. I went back in 60 days. Guess what? I was told I couldn't close my account until after 60 days. I got very angry. Everyone in line was getting an ear-full. I finally talked to someone in a higher position, and I did get my money out and the account was closed. If I had been some other person waiting in line and heard a teller say bank accounts can't be closed for 60 days, I would have been very concerned. That was years ago and I hope they have a better system now. As it stands I wouldn't want my funds tied up in a credit union that wouldn't let me close my account. 120 days is ridiculous.
I live in Western MA. Love my credit union, and a bunch of them are indeed advertising on local stations and cable. And our local banks aren't even in trouble. It's the Big Boys that got all full of themselves and smarmy and worse. Way worse.
Credit union + marketing = bank
No thanks I'd rather have to look in the phone book for a credit union! That's how I found mine.
i think a lot of people don't know about credit unions. if i had put my 401k into my credit union, it would be whole.
BECU, Metropolitan Credit Union, Kitsap Credit Union, and dozens of other in the State of Washington are all advertising. Small community banks are good alternatives, too. Yes, this is a historic shift. Your point, is well taken:
"... credit unions are community-owned, non-profits that are happy, healthy, and provide all the same services.
This is one of those rare moments in history when entire markets are shifting. If credit unions were doing a decent job of marketing, they could grab a massive percentage of the market from banks. Think iTunes vs. CD sales."
I have been touting credit unions as the way out of this mess since it started. But you are wrong on one point: CU's are not non-profit, they are not for profit institutions, there is a big difference.
That said. I quit suntrust after they bought huntington back about 7 or 8 years ago and haven't looked back. Their service is great, their rates are great, they helped me find a vehicle when I needed one and gave me a 4% rate on my loan at a time when everyone else was getting 7-9% at banks, etc, etc.
Let's all jump on the credit union bandwagon. I'm all for it.
You must be logged in to comment. Log in or connect with
