Will credit union popularity last?

12/5/2011

According to the Credit Union National Association, the national average of consumers with checking accounts in CUs is about 10 percent, the Seattle Times reports.

Conversions have risen of late, as many business owners and entrepreneurs made the switch from big banks to CUs because they weren't able to secure small business loans, and unnecessary bank fees left a sour taste in their collective mouths.

For example, Washington's largest CU, BECU, gained more than 16,000 new members in October. Between November 5 and 15, nearly 5,000 more joined.

"People are finally realizing there are other options out there, whether it's a credit union or a local community bank," BECU spokesman Todd Pietzsch told the news source.

Furthermore, according to the National Association of Federal Credit Unions, CUs increased business lending by 4.5 percent in the 12 months ending June 2011, while big bank lending declined by 1.8 percent during that same period, Forbes reports.

However, some remain skeptical that the push will last.

"I personally don't see the high media-attention level and high volumes continuing," Marvin Umholtz, an Olympia consultant to credit unions and banks, told the media outlet.

The news source points to the fact that some consumers may feel the hassle of switching is too burdensome.