Why Bank of America Should Become a Credit Union
Elizabeth Morash, Callahan & Associates
WASHINGTON, DC – (August 1, 2012) –The Callahan Executive Team challenges Bank of America to convert to a credit union charter in the August 2012 edition of the Callahan Report. Bank of America was built to serve an Italian immigrant community, a demographic of potential members with limited access to credit. With this foundation, the idea to convert doesn’t seem so crazy.
Published by Callahan & Associates, the Callahan Report is a publication in which industry leaders discuss and debate the benefits of regulatory reform and the changing credit union industry landscape.
Citing declining trends in Bank of America’s 2011 financial performance and an exodus of member relationships, Callahan’s Executive Team takes aim at the retail bank’s business model. Callahan suggests that Bank of America converts to a model that focuses on aligning customer needs with product offerings.
“Bank of America: Follow Your Customers. Convert To A Credit Union” explores this proposal with an in-depth look at the hurdles Bank of American would need to overcome in the conversion process and how the inherent benefits of the credit union charter would positively impact Bank of America’s member relationships. Honing in on the impact the conversion would have on Bank of America’s financial performance and on the country as a whole, Callahan points out that “a credit union charter could save Bank of America customers billions of dollars annually. That’s a non-government stimulus waiting to happen.”
Concluding the argument, the Callahan Executive Team challenges Bank of America to “convert your retail business to a credit union charter. Put people first. Your customers will like it, your business will grow and the nation will benefit. The future lies in the credit union business model.”
Also included in August’s Callahan Report: “United Federal Credit Union Demonstrates The Benefits Of Being A Credit Union,” a Q&A with Gary Easterling, CEO of United Federal Credit Union; “Notes From The Road, What We’ve Learned From Where We’ve Been;” and “In Person & Online: Where You’ll Find Callahan In August.”
For more information on the Callahan Report or to read the August 2012 edition, please visit pages.callahan.com/TheCallahanReport.
Callahan & Associates is a Washington, DC-based firm that delivers in-depth analysis of credit union quarterly performance through its proprietary software and financial publications. As a financial consultant, it also offers strategic planning and investment management for credit unions. Visit www.callahan.com to learn more.