Credit unions’ not-for-profit, member-owned, cooperative structure delivers lower rates, CFPB report confirms
Credit unions outshine big banks, ABC 15 in Phoenix highlights the credit union difference
PHOENIX, ARIZONA (February 20, 2024) — In a recent story aired on ABC 15 in Phoenix, the positive impact of the credit union member-centric structure was highlighted through the findings of the latest Consumer Financial Protection Bureau (CFPB) report, showcasing the way credit unions’ member-owned not-for-profit structure allows credit unions to prioritize the financial well-being of their members over their profits.
The CFPB report calls out a stark disparity in credit card interest rate offerings between larger banks and smaller financial institutions. In an interview with ABC 15’s Data Analyst Garett Archer, Troy Stang, President and CEO of GoWest Credit Union Association, pointed out that credit unions, operating under a not-for-profit cooperative structure, are built to offer lower annual percentage rates (APRs) than their larger banking counterparts. According to the CFPB analysis, consumers pay higher interest rates at large banks, whereas smaller card issuers like credit unions maintain lower APRs and reduced fees.
Stang spoke to the credit union difference, sharing, “Relationship banking really matters. What you see with credit unions being not-for-profit member-owned cooperative structure institutions is that a credit union’s first line of accountability is to their members.”
The newly released CFPB report is another example of how credit unions positively impact their members through their structure and core value proposition. Listen to the interview to understand the stark contrast between larger banks’ offerings and credit union’s structure, value, and impact.
Listen to the interview here
You can access the CFPB report here.
About GoWest Credit Union Association
GoWest Credit Union Association is the trade association representing credit unions in Arizona, Colorado, Idaho, Oregon, Washington, and Wyoming. GoWest advocates on behalf of more than 300 member credit unions, and their 17.4 million consumer members. The region’s not-for-profit cooperative credit unions take a bold, innovative, and forward-thinking approach to improving the lives of their members and enriching their communities. Follow GoWest Credit Union Association on LinkedIn at LinkedIn.com/GoWestCreditUnionAssociation, Facebook at Facebook.com/GoWestCUA, and Twitter at Twitter.com/GoWestCUA for the latest updates on the regional Credit Union Movement.
