The Importance of Competition in Financial Services

For markets to operate efficiently and for consumers to receive the best services, it is critical that competition exists in the financial services industry.  Credit unions, or not-for-profit financial cooperatives, have unique structural differences that allow them to pass profits onto their member-depositors in the form of lower loan interest rates, higher yields on savings, and fewer or lower fees. With historically high interest rates deeply impacting household budgets and consumers’ wallets, credit unions represent a small but impactful part of the financial ecosystem in the United States.   But they have to compete with large banks with billion-dollar marketing and technology budgets.   Credit unions, or not-for-profit financial cooperatives, have unique structural differences that allow them to pass profits onto their member-depositors in the form of lower loan interest rates, higher yields on savings, and fewer or lower fees. With historically high interest rates deeply impacting household budgets and consumers’ wallets, credit unions represent a small but impactful part of the financial ecosystem in the United States.   Carrie Hunt is the Chief Advocacy Officer of America’s Credit Unions, the new national trade association being formed through the merger of the Credit Union National Association (Credit Union National Association) and the National Association of Federally-Insured Credit Unions (NAFCU).   Carrie joins The SCORE to discuss how credit unions help make the financial services system more efficient, effective, and accessible to consumers.  Listen in to learn more.