Chicago-based consultancy Raddon Financial Group has a warning for credit unions seeking to capitalize on consumers’ anti-bank sentiments: Be careful what you wish for.
The downside of a mass migration to credit unions is that some of those accounts will be single-service, low-balance accounts that “will need to be subsidized by the rest of the membership,” Raddon’s Bill Handel told Credit Union Times.
And if there’s not enough cross-selling to encourage more business from those account holders? “Then at some point I believe [credit unions] will need to move away from free and move towards a relationship-based pricing structure.”