WINTER SPRINGS, Fla.–Credit unions that haven’t already done so will want to think about reassuring their members about the security of their deposits, as online searches about the safety of money have spiked by 400% since the recent failure of two banks. A review by CUToday.info of searches for “credit union,” however, reveals there has been no uptick over the last week.
According to Google Trends data examined by business accounting solution provider akounto.com, many Americans have been searching “is my money safe?” in the wake of the federal takeovers of Silicon Valley Bank and Signature Bank. “It’s natural for people to be concerned about the money in their bank account when they see news of a major bank collapse; however on this occasion it’s unlikely to affect the average person,” noted a spokesperson for the company.
The CUToday.info search using Google Trends is shown below and reveals no appreciable change.
CU Groups Issue Statements
Meanwhile, the credit union trade groups continue to issue statements aimed at reassuring consumers that credit unions are well-capitalized and safe.
“CUNA is engaging with policymakers in Washington, D.C., and coordinating with our league partners to ensure credit unions have the resources they need, to address any questions raised by this developing situation,” said CUNA President/CEO Jim Nussle. “The credit union difference means that credit unions act with the best interests of member-owners at heart, and credit unions will continue to meet member needs.”
CUNA noted that while the Silicon Valley Bank collapse and related shutdown of Signature Bank has no connection to credit unions, CUNA, state leagues and credit unions have worked to emphasize the safety and soundness of credit unions with consumers, as well as the credit union difference.
Talking Points
CUNA also distributed what it said are key points on the credit union difference and insurance coverage, including:
- As not-for-profit financial cooperatives, credit unions’ first priority is members’ financial success and security.
- Federally insured credit unions offer a safe place for credit union members to save money, deposits are protected by the National Credit Union Share Insurance Fund and insured up to at least $250,000 per individual depositor – the same as any other federally insured financial institution.
- Credit union members have never lost a penny of insured savings at a federally insured credit union.
Statement from Cornerstone CU League
In addition, Cornerstone League President/CEO Caroline Willard issued a statement saying, “Silicon Valley Bank and Signature Bank’s failures are related to bank mismanagement, not a system fracture. The failures can be viewed as a reverberation of the tech sector’s current issues, accelerated by digitization, and amplified by collective angst caused by The Great Recession. Cornerstone League will continue to monitor the story as it develops and keep members abreast of credit union impact.”
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