Members may leave for better deals

The Federal Reserve’s recent rate cut is an opportunity for credit unions–but they need to act or risking losing members to other FIs that recognize how consumers are shopping around, according to one person.

Lou Grilli, AVP of product development and thought leadership at Trellance, reminded that when the Fed cut rates by a quarter-point in July it was the first such move in a decade.

“That certainly has caught consumers’ attention,” said Grilli. “People who are reading the news or looking at interest rates for auto loans or credit cards are seeing rates moving down. So if you’re not doing something for your members to help them out, then they are going to look elsewhere. I know that several people I work with are asking if it’s time now to refinance their mortgage or look for a lower car loan rate.”


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