Credit Union membership is growing as a result of a number of commercial banks adding fees. A number of commercial banks announced last month they would be adding customer fees for things like using an ATM card or paying for something with a debit card.
It created a customer backlash and people began taking their accounts to credit unions. Locally, IU Credit Union CEO Bryan Price says he has seen an increase in customers.
“We increased a little in terms of membership. We have 66,000 members overall in our credit union,” Price says. “Overall, we did pick up a few members compared to what we typically do in the month of October.”
Lisa Thomas has been an IU credit union customer for about 20 years. She says since the company is actually owned by the members its motivations are different than that of a commercial bank’s.
“I know people that use commercial banks, and I see the differences the interest rates are higher at commercial banks,” Thomas says. “Right now some people are even worried that their banks may go out of business or they might be losing money.”
Generally commercial banks charge fees because they are expected to turn a profit, that’s not the case with credit unions since they are member based.
Price adds to date we have opened more memberships this year than we have in the last several years.