Breaking Down The Growing Popularity Of Credit Unions

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There is a growing number of people turning to credit unions. Their popularity is becoming increasingly hard to deny, which is quite extraordinary in America. The following will break down why this is happening and what it means.

What is the Difference?
There are a lot of differences between credit unions and regular banks. For example, a San Diego credit union only services the local community as opposed to big banks that tend to focus on providing services to everyone. The same can be said for most credit unions across the country.

The simplest way to explain the difference between the two is that credit unions are non-profit institutions whereas banks are only in this for the money. Sure, big banks offer more convenient locations and usually have more efficient technologies, which are things that credit unions don’t always have, but credit unions seem to focus on localized needs.

Why are People Turning Away From Big Banks?
There are a lot of reasons why businesses and regular folks are turning away from big banks. Sometimes, it has to do with the fees most banks impose on consumers and businesses just to have an account with them.

Others are leaving because of mistrust. Many young people and business owners saw the big banks crash, so they do not have too much trust in these institutions the way other folks might.

Why are Individuals Choosing Credit Unions?
Credit unions tell people what they want to hear. For one, many credit unions do not really have fees for their members, which is something many folks are looking for. Another feature that many are loving about credit unions is that they take strong steps towards helping the community.

At the moment, there is a growing movement to support local businesses, and credit unions are reaping the benefits of that movement. It should also be pointed out that credit unions tend to be better for people with bad credit, and there are a lot of folks dealing with debt at the moment.

Why are Small Businesses Choosing Credit Unions?
Small business owners are going to credit unions because these types of financial institutions are invested in the community, so they are inclined to help.

Small business owners who might be rejected by a bigger bank have a higher chance of getting approved by a smaller one. Big businesses are rejecting small business loan applications more often nowadays, which is probably prompting this change. On a special note, individuals who have a relationship with the credit union and want to start a business are even more likely to get it if that relationship is a positive one.

What Does This Mean for the Future?
There is no telling what could happen in the future as credit unions continue to gain some momentum among people. Banks are going to pay attention to this change and may begin to make moves to challenge this rise.

It’s possible to see big banks let go of their fees to lure customers back. Credit unions that want to focus on making clients happy may begin to take strong steps to ensure communities are happy with them. One example is that some may begin to assure clients that they will only be making environmentally-conscious investments as opposed to big banks who don’t seem to care.

It’s an exciting time for credit unions and folks who want to see non-profit financial institutions succeed. This is a trend worth paying attention to if you’re interested or if you are a credit union member yourself.