Credit union accounts

ahai1

The Glasgow one offers mortgages. It is too early to tell what most of them are going to do as they are small and don't have much money. They have to invest the money or give dividends.

The key thing I like about them is that the members control them.

My local one offers a better customer focused service at the branch and via telephone then the main high street banks for example the phone is actually picked up and the people at the other end know what you are talking about.

As I have said it will be a secondary savings account for me but in the long term hopefully it will be my savings account.

Extant

Bernard_Coleslaw wrote: »

So this Credit Union current account offering, with a debit card, standing orders and direct debits, is just Scotch mist, then?

I'll give you three guesses as to who provides the back end support for LCCU's current account, etc.

You're not wrong, but what difference does that make to customers? If an organisation can offer decent value for money and good service, surely that's what's more important?

So there's wonky coding on a website. Or, "shock horror", someone's only got an agency sort code. So what? A little less sneering might be in order I think.

The point was: how can a credit union "compete" with a bank when it relies on the bank for its basic functions?

Bernard_Coleslaw

BarclaysManager wrote: »

I'll give you three guesses as to who provides the back end support for LCCU's current account, etc.

A bank. Co-op, from memory. And customers should care about this why, exactly?

The point was: how can a credit union "compete" with a bank when it relies on the bank for its basic functions?

Your point was a little condescending, to be honest. But since you ask, how about:

• Offering decent value, easy to understand products that customers want
• Employing staff who are keen to help, not commission-hungry sales people
• Being closer to their customers (i.e. community, employment or residence links) - understanding them a little better rather than doing the corporate "look at us, we're global don't you know" palaver
• Not forcing them into huge amounts of debt and then piling on the charges later on
• Not being owned by external shareholders helps - that old hunger for short-term profit's a kicker, isn't it?

It's a start, I suppose.

Extant

Bernard_Coleslaw wrote: »

A bank. Co-op, from memory. And customers should care about this why, exactly?

Because again, it's about the ability to compete, which leads me on to...

Your point was a little condescending, to be honest. But since you ask, how about:

• Offering decent value, easy to understand products that customers want
• Employing staff who are keen to help, not commission-hungry sales people
• Being closer to their customers (i.e. community, employment or residence links) - understanding them a little better rather than doing the corporate "look at us, we're global don't you know" palaver
• Not forcing them into huge amounts of debt and then piling on the charges later on
• Not being owned by external shareholders helps - that old hunger for short-term profit's a kicker, isn't it?

It's a start, I suppose.

Apparently you don't seem to understand the concept of competition in a business sense. Go and read the comment I originally replied to: a comment about credit unions offering a wider range of products and competing with banks from a poster who has already stated they're fed up with HSBC.

How are they going to offer a wider range of products when they're essentially just rebranding our own services, and rely on us to provide them? A spade is a spade is a spade.

Perhaps if you could put aside your evident disdain for banks, you might be able to see what I originally meant.

Oh, and by the way - you might consider the fact that even mutual societies and the like still have a responsibility to generate profit for their owners, the customers just happen to be the owners.

And like all humans, even building society and credit union customers are greedy and want their fair share of the profits, or they want better interest rates, etc. What does this cause? It causes the business to expand, not to stagnate. And what happens when things get bigger? Take a look at the Halifax or Woolwich pre-take over.

I hate to spoil it for you, but the dream of a country full of little credit unions would just make a country that couldn't compete on an international stage and cause our economy to take a step back.

ShelfStacker_3

Bernard_Coleslaw wrote: »

So this Credit Union current account offering, with a debit card, standing orders and direct debits, is just Scotch mist, then?

That's not a specific offering, that's a vague promise that at some point those facilities will be available.

Credit unions are, in general, a lovely idea - if you can deal with having fewer facilities than with even most building societies.

ahai1

I am not going to get into the whole arguements about banks again except that credit unions generate money which is given back to their members and not some fat city trader who pockets millions for doing god knows what.

As for whether the service is rebranded or not I have no interest in it.

As I have said the service is better then banks and I as a member have a say in what the credit union does.

BarclaysManager wrote: »

Because again, it's about the ability to compete, which leads me on to...



Apparently you don't seem to understand the concept of competition in a business sense. Go and read the comment I originally replied to: a comment about credit unions offering a wider range of products and competing with banks from a poster who has already stated they're fed up with HSBC.

How are they going to offer a wider range of products when they're essentially just rebranding our own services, and rely on us to provide them? A spade is a spade is a spade.

Perhaps if you could put aside your evident disdain for banks, you might be able to see what I originally meant.

Oh, and by the way - you might consider the fact that even mutual societies and the like still have a responsibility to generate profit for their owners, the customers just happen to be the owners.

And like all humans, even building society and credit union customers are greedy and want their fair share of the profits, or they want better interest rates, etc. What does this cause? It causes the business to expand, not to stagnate. And what happens when things get bigger? Take a look at the Halifax or Woolwich pre-take over.

I hate to spoil it for you, but the dream of a country full of little credit unions would just make a country that couldn't compete on an international stage and cause our economy to take a step back.

Bernard_Coleslaw

BarclaysManager wrote: »

Apparently you don't seem to understand the concept of competition in a business sense.

Well, it's a good job I've got you to explain it for me. Care to pat me on the head while you're at it?

Go and read the comment I originally replied to: a comment about credit unions offering a wider range of products and competing with banks from a poster who has already stated they're fed up with HSBC.

OK then. Yes, I read it again. You used the word 'massive' three times. One time even in block capitals. Then some odd comment about Mars bars and apple slices that I'm sure was meant to be very profound.

How are they going to offer a wider range of products when they're essentially just rebranding our own services, and rely on us to provide them? A spade is a spade is a spade.

Well, perhaps by choosing the services that their customers actually need. Offering them at the scale that is appropriate. And not having to build up massive profits.

Of course, apparently I don't really understand competition in a business sense, so perhaps I'm just wrong-headed. Silly little me..

Perhaps if you could put aside your evident disdain for banks, you might be able to see what I originally meant.

I'm actually fairly neutral regarding banks, myself. I just don't like being talked down to - but that's another point. However, surely if you've spent any time on these boards (take a look right now, for instance), you'll see that the banks aren't really doing much to win themselves any fans. Consider why we even need a site like this, in the 21st century.

There appears to be a groundswell of customers who just want simple, trustworthy, value-for-money financial services. Just occurs to me that there might be a pretty decent-sized niche for firms that can provide these modest services. Doesn't have to be global. Doesn't have to be shiny and posh. Just has to do a job.

But what do I know? Apparently I don't understand competition in a business sense.

Oh, and by the way - you might consider the fact that even mutual societies and the like still have a responsibility to generate profit for their owners, the customers just happen to be the owners.

Actually, I think you'll find that building societies have a responsibility only to generate enough profit to establish sufficient capital and reserves to support their liabilities. There is a big difference. A massive difference, you might say.

What does this cause? It causes the business to expand, not to stagnate. And what happens when things get bigger? Take a look at the Halifax or Woolwich pre-take over.

Using, as examples, two organisations that changed their business models and then failed miserably doesn't really do your arguments any favours.

I hate to spoil it for you, but the dream of a country full of little credit unions would just make a country that couldn't compete on an international stage and cause our economy to take a step back.

Because the UK's really up there pushing the economic envelope right now, isn't it?

ahai1

I agree with everything you said. Anyway since when do bankers understand anything? Heard of sub prime mortgages?

We are happy in our little world and I am sure that the bankers are happy in their little world been bailed out by the government for lending money to anyone.

Bernard_Coleslaw

ShelfStacker wrote: »

That's not a specific offering, that's a vague promise that at some point those facilities will be available.

I'll make it easier for you then:

Leeds City Credit Union - debit card.

Portsmouth Savers Credit Union - debit card

Southwark Credit Union - debit card

These look like real products to me, not 'vague promises'.

Credit unions are, in general, a lovely idea - if you can deal with having fewer facilities than with even most building societies.

Given the evidence of some of the stories on these boards, I think there are plenty of people who could deal with that concept quite well.

ahai1

Thanks for the links. The majority of customers do not need all the wonderful services that the banks offer like Indian call centres and sub prime mortgages.