A lot of things happened following the financial crisis. Besides the restructuring of loans, many banks had to close. But the need for banking services was addressed by other financial institutions.
There are many smaller financial institutions, like Wasatch Peaks Credit Union, that offer services formerly only available in banks. Now, even credit and loan associations offer money market placements, online banking, student loans, and business loans.
Mobile banking boomed after the introduction of smartphones. Access to the Internet with a smartphone has made it possible for bank clients to access their accounts online. Clients are now able to easily transfer funds, pay bills, and do other banking activities online.
Other banking services are now common fare with credit unions. Credit unions have banded together to provide better services for their customers. Customers can transact at the nearest credit union, as it’s most probably connected to other credit unions. Their banding together allows them to compete with larger banks without the corporate overhead.
A traditional credit union product has remained strong even with these innovations. Credit unions, for one, offer better interest rates on certificates of deposit. This hasn’t changed, and CDs are more attractive than before. CDs are long-term consumer investments, which provide fixed interest over its term life. They can’t be withdrawn before the maturity date. There’s a penalty when the CD is withdrawn ahead of the maturity date. But CDs have a higher rate of return for longer maturity periods. In most instances, bigger investments also have a larger interest rate.
Credit unions are now competing on an almost even footing with big banks. This has given them the opportunity to work with the community and provide clients with more services and products.