SAN FRANCISCO–The problems plaguing Wells Fargo following revelations of the widespread opening of unauthorized accounts for customers has led to something of a back-handed compliment for credit unions.
In a nationally distributed story, Bloomberg said if there are any winners from the scandal, “it may be the mega-banks' not-for-profit country cousin, the credit union.”
Bloomberg noted that when "establishment” banks are seen as ripping off the little guy, credit unions benefit, and it pointed to a surge in membership growth at credit unions that coincides with Bank of America's (eventually abandoned) move to charge debit-card users a $5 fee on purchases, as well as the Occupy Wall Street movement.
“The Wells Fargo scam could help make 2016 a banner year for the nonprofit financial institutions,” Bloomberg forecast.
The Bloomberg report also cited a “blistering statement” from NAFCU CEO Dan Berger in response to news Wells Fargo was being fined $185 million for its activities.
Bloomberg said credit unions “have a compelling story to tell,” saying “Customers are members in a sort of collective in which there's no pressure from Wall Street for unrelenting growth.” It further stated “Millennials have been flocking to credit unions,” and noted that a quarter of new CU members in the first quarter were Millennials, according to TransUnion data, up from 20% in 2013.