Can credit union and coop banks replace traditional banks completely?

Edit (adding additional question): Has there been an attempt to do this on a national or societal level?

  • AA5B@lemmy.world
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    5 months ago

    Completely? No, banks do a lot more than the retail accounts everyone is familiar with.

    Side effects? ATM ownership? Usually the privately owned ones are much more expensive, borderline scams. Credit card processing?

    Depending on how liberally you take the intent of the question, I haven’t directly used a traditional bank in decades. However my online bank has more capabilities than my credit union. And who would put investments in a bank when there are so many better investment options? My mortgage was started with a bank but sold to a loan processing company: if I had gotten it through my credit union, they don’t sell mortgages. I suppose car loans are typically a Main stream bank: my credit union offers poor terms for those, can’t compete

    • LesserAbe@lemmy.world
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      5 months ago

      Funny, I just commented elsewhere that my credit unions have always offered great rates on auto loans. Where are you located? I’m in the states.

      I previously had a dealer be like “let me see if my guys can give you a better financing rate” and they did (slightly) than a bank rate I had secured. But since then I’ve financed a few times with a credit union and they’ve never been able to beat the rate.

      • AA5B@lemmy.world
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        5 months ago

        I’m in Massachusetts, but I think I’m “cheating”. When I’ve had to finance, I’ve gotten a promotional rate. As far as I know you can only get those by letting the dealer find financing, so the credit union can’t match the promotional rate

        Edit: my credit union is currently offering 6.84% loans for new cars. It’s hard to get the info to compare but the latest I found from my car manufacturer was 5.6%, but this spring they had at least two promotionals for 0% and 1%. Most importantly, it’s not like you can opt out of the financing and get a rebate of equal value