Be Better: COVID-19 payment trends that allow credit unions to outshine big banks right now

As Americans hunker down in their homes, changing everything about where and how they spend money, credit unions are entering uncharted territory.  However, one thing is certain: credit unions must continue to be compassionate banking alternative: delivering the financial support that consumers and small businesses need now and in the face of an uncertain future.

Big banks are going to do what they always do: put profit before people. Just this morning, for instance, thousands of small business owners voiced their anger on social media after being denied from Bank of America’s Paycheck Protection Loan Program. The bank stated it would only offer relief to customers that have an existing credit card or lending relationship with the bank.

While Bank of America reversed its decision only after massive criticism, the initial policy demonstrates the clear connection they draw between the payments and lending side of their business and that, for them, these decisions are purely transactional. Credit unions can stand as the compassionate financial alternative, leveraging payments to support members’ immediate financial needs while building long-term relationships with them.

 

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