September 22, 2020

The Credit Union Advantage

Credit Union difference

Credit Unions are founded on the principle of people helping people, and as a result, the relationship with their members is much deeper than the one that exists between banks and their customers. Through tough times, those tight-knit relationships can provide reassurance that things will improve.

Although they might appear similar to a casual observer, the structure of a Credit Union is very different from a bank. Depositors are called members, and each is an owner of the Credit Union. 

On the other hand, banks have customers who have no ownership in the financial institution. Rather, the owners are stockholders – the bank investors. During Covid-19 lockdowns, communities felt isolated, and Credit Unions, true to their credo, stepped up and figured out how to continue to communicate with their members, offering financial guidance and, in some cases, providing much-needed safety nets.

Typically, Credit Unions offer members some advantages when compared with big banks:

  • Lower interest rates on credit cards 
  • Lower rates on loans 
  • Free or low-fee checking 

It’s worth noting that Credit Union deposits are insured by the National Credit Union Share Insurance Fund; bank deposits are insured also, but by the Federal Deposit Insurance Corp.

During the recent lockdown, Credit Unions recognized that their members would have financial questions: “My hours have been cut at work, can I get a payment extension on my loan?” “I found my dream house—can I still get a mortgage?” “My roof is leaking and I need a home improvement loan!” They set out to provide safe, easy and fast ways to provide answers and convey information to members.

Just because the doors were shut at the Credit Union didn’t mean lines of communication were down. Text Messaging enabled Credit Unions to answer members’ questions, even when branch lobbies were closed and employees worked from home: loans were approved, payments got extended and houses were bought. 

Credit Unions provide a more personalized way of handling personal finance. As the economy becomes more complex, credit unions are streamlining their procedures to provide more efficient communication with members. That means more successful interactions and stronger bonds with their members and communities. 

Share this Article
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

Subscribe for E-Newsletter!

Interesting & Insightful Articles, Interviews, Press Updates & more, Once every month, straight to your inbox. No spam! 

Questions about the Blog?

Together We Can – Eltropy is Committed to Helping Credit Unions Best Serve Members During Covid-19

Hit ‘Esc’ or Click Below the Section to Close this Menu

Thank You for Subscribing!

On the last Monday of every month, we will deliver a roundup of highlights that include new partnerships, product updates, social media highlights and more.

It’s an exciting time for us at Eltropy and we are honored to have you aboard!

All set!

Webinar-ILST

Add the link to your bookmarks and the event to your google calendar to not miss the event! Looking forward to seeing you on 

September 3, 10 AM EST.

https://global.gotomeeting.com/join/384512789

You can also dial in using your phone. 
United States: +1 (224) 501-3412 

Access Code: 384-512-789 

Hit 'Esc' or click elsewhere on screen to close this window