If you’re an American who’s experiencing a tight budget, you have to ask yourself; are you happy with your bank? It’s a reasonable question considering that the financial market was struck by a considerable blow five years ago during the banking crisis of 2008. During that time, the American and global financial market nearly collapsed and resulted in one of the largest federal bailouts in history. Despite this close call, major banks have fared somewhat in the years afterward. According to results taken in 2012 by the American Costumer Satisfaction Index (ACSI), JP Morgan Chase & Co. and Wells Fargo scored high for big banks. Smaller banks ranked higher and credit unions scored highest. What led to these results?
The Banking Institution’s Image
Large banks are not exactly popular with the American public. Public relations blunders can account for one major reason. For example, take Bank of America. According to the ACSI, the largest bank in the United States is also the most disliked. This bank has become popular by adding fees in the years since the recession and did not expect the reaction the public gave them. One primary reason was the five dollar debit card fee they attempted to implement. Social media exploded with complaints and criticism. Bank of America rescinded the policy, but the damage to their image was already done. Chase Bank, on the other hand, scored better, mainly due to their policies not taking advantage of the American consumer.
Americans Prefer Credit Unions
The ACSI’s result for credit unions stands out above all others. If you recall, November 5th, 2011 was designated Bank Transfer Day. Customers were urged to remove their funds from large banks and transfer them to credit unions. The idea proved to be successful as credit unions across the nation saw a spike in membership. One reason was the fact that banks aim to make a profit on behalf of their shareholders. Credit unions, however, aim to make a profit for their members through offering unique services. Each member is also a shareholder and owner. For this reason, no monthly checking fees are implemented and interest rates on loans and credit cards are capped at 18%. The two institutions function on opposite sides of the spectrum.
If you’re tired of having a large bank oversee your funds and wish to transfer to a more caring and reliable financial institution, choose Brownsville’s Valley Federal Credit Union. You can start today by reaching our main office at 956.546.3108.