Suggested Predictions
Ziibos (25)
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Witnessing a 134% increase year over year in deposits in its REWARDChecking accounts at over 500 participating community banks across the country, BancVue, a leading provider of products and consulting to community financial institutions, demonstrates consumers' flight to safety and retreat from the big banks. In fact, BancVue's REWARDChecking, which is only available at community financial institutions, saw a stunning increase of $774 million in deposits in February alone, with accounts opening every 47 seconds in the U.S. Will Consumers continue this trend of abandoning big banks for the high rates offered by community banks?
Comments (2)
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In Australia, the Commonwealth Bank is underwritten/guaranteed by the Government, thus is seen as more stable than credit unions. Additionally, St George, the biggest credit union in Australia, took a nose-dive several years ago.
Bendigo Bank became popular a few years back, but mainly in communities that had branches of major banks shut down. The Commonweath Bank and other banks were seen to be less interested in the average customer, and this drove customers to the credit unions and community banks.
However, since then, the large Australian banks have realised that alienating the average customer was a really bad idea, and have been doing their best to change their business practices.
Overall, the current situation in Australia, is that community banks and credit unions have reached a plateau, and I am personally concerned that with the current economic climate, you will start to see more credit unions collapse like St George. I predict that the Commonwealth Bank will see a return of customers, but not the National Australia Bank - dodgy bastards :D.