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Survey finds small businesses fleeing to CUs
Alignable, Inc. conducted a survey with over 2,500 small businesses in March, which revealed a trend of small businesses moving their accounts to credit unions. Among respondents who transitioned to credit unions in the wake of the Silicon Valley Bank and Signature Bank collapses, they cited more trust in and better service at their credit unions, among other things, as their reasoning.
According to the survey results, 17 percent of small businesses held their money in credit unions prior to the bank failures, compared with 34 percent in major banks. However, following the bank failures, 28 percent of small businesses reported holding their money in credit unions.
NAFCU President and CEO Dan Berger recently joined The Close on Bloomberg TV to discuss the bank failures. Berger told The Close hosts Scarlet Fu and Katie Greifeld that in the aftermath of the failures, credit union deposits have increased due to a “flight to safety” from consumers and business. He remarked during the interview that over 90 percent of credit union deposits are insured by the federal government, while only 50 percent of bank deposits are insured. Berger also detailed this movement in a recent interview on SiriusXM.
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