Credit unions, and their new members, are poised to benefit as more and more Americans become fed up with their banks, Credit Union National Association (CUNA) President/CEO Bill Cheney said during a Monday interview on CNBC’s Squawk Box.
A proposed nationwide Bank Transfer Day, scheduled for Nov. 5, appears to be gaining some momentum as around 50,000 people had pledged on Facebook, as of Monday night, to remove their funds from banks and transfer them into credit unions.
Asked by CNBC’s hosts if such a mass movement could trigger bank runs, Cheney emphasized that is unlikely. Overall, Cheney said, the message from CUNA and credit unions is that big bank customers would certainly “find a better value” at their local credit union branch.
Cheney also noted that many current bank customers aren’t waiting for Nov. 5 to make their move. Some credit unions have already seen new membership applications increase fivefold, and traffic at CUNA’s aSmarterchoice.org has doubled over the past several weeks, Cheney explained.