Credit Unions Succeed Where Banks Fail
Some credit unions are betting they can succeed where banks have failed.
Research firm SNL Financial reported banks and thrifts shut 2,267 branches in 2012. AlixPartners Consultants said it figures those closings pared the nation’s bank branch list to some 93,000 locations. What’s more, the firm said it expects the count to continue falling to 90,000 over the next decade, which would put it back to 2000 levels.
Another example of a credit union succeeding where banks bailed out occurred in Pascoag, R.I. Last year a Bank of America branch closed there, leaving Rhode Island Credit Union as the town’s only financial institution. RICU, with $246 million in assets, is headquartered in Providence.
Gina DePalo, vice president of branch administration and marketing at RICU, noted the credit union has maintained a profitable full-service branch in Pascoag for more than 33 years.