Competiton Among Credit Unions: La La Land Or "New/New" Reality?

😎 Commenter Anonymous March 15, 2025 at 12:02 PM: "Explain why the statement isn't true. Navy is not even close to being a primary competitor of ours."  

It is true that at one time credit unions didn't compete with each other. The original credit union concept emphasized a limited membership, organized around a group with a "common bond", a common purpose. Generally the common bond was well-defined around an employer, church, union, or small special interest group - state employees, IBM or RJR employees, telephone or post office employees, a small local community, African Americans, beekeepers! The different credit unions which served each group did not overlap much.

Times have changed. Now most larger credit unions permit anyone and everyone to join. SECU, although large, is one of the remaining exceptions. It is not unintentional that you see PenFed [link] advertising to make you (and everybody else in the U.S.!) a car loan on social media. PenFed has been very aggressive and many SECU members use their lending services. It's not coincidental that Langley FCU [link] from Virginia recently opened a branch office in Raleigh. Langley FCU began promoting much better CD rates locally when they perceived a weakness at Local Government FCU in its leadership transition (after the famous "no proposal proposal" breakup with SECU). Sharks can sense blood in the water and tend to circle!

And of course, it was no accident that a pre-approved credit card offer from NavyFed appeared in many North Carolina mailboxes (including mine) last week. BTW, NavyFed's local branch office in Raleigh is just up the road from Langley's!   

In case you didn't know [here's the link to complete study]:

* Overall, the economic impact model estimates that the military supports roughly 11 percent of North Carolina’s employment.

* The military supports 653,000 jobs in North Carolina,    

* 495,000 of total military-supported jobs occur in the private sector.

*North Carolina has a total of 678,000 veterans that reside in every county across the state. 

 

* Around 23,000 civilian contractors are employed by the Department of defense in N.C. 

 *.... plus the North Carolina National Guard, and millions of family members, relatives, roommates,...

Last time I checked, NavyFed's assets just in North Carolina alone would make it the second largest credit union in the State! Most SECU members can join all three of these highly competitive, "military" credit unions.

😎  You may believe you're not competing with those folks, but I don't think they understand that ... welcome to the ["new/new"?] "Industry standard" - anyone and everyone!

  Remember this 2022 question for the SECU Board?:  

"Where are you leading us, why are you taking us there, how will it benefit the members?" 

The "New/New" World Of Finance?

✅  Commenter:  Anonymous March 15, 2025 at 4:37 PM

"2:50pm  I will stand by my comment that adults that make free choices on products have some responsibility to educate themselves, seek and listen to advice, and then use products as intended."

 😎 World famous comedian W.C. Fields agreed with our commenter's opinion on financial responsibility, but expressed it a little more clearly:

   W.C. Fields.

"It's morally wrong to allow a sucker to keep his money."

✅ J.D. Power

[J.D. Power is an American data analytics, software, and consumer intelligence company founded in 1968}

TROY, Mich.: 15 Aug. 2024 —Show Me the Money! Cashback and Value Credit Cards Grow in Popularity as Financial Health of Cardholders Declines.

J.D. Power Finds More than Half (54%) of U.S. Credit Card Customers are Financially Unhealthy; 51% Carrying Revolving Debt as Average Interest Rates Increase  

The points, miles and perks that have come to define the modern credit card marketing playbook are being replaced by cashback rewards and lower fee cards as cardholder financial health grows increasingly strained. According to the J.D. Power 2024 U.S. Credit Card Satisfaction Study released today, only 46% of cardholders are now classified as financially healthy and 51% carry revolving debt on their cards. Meanwhile, the average recalled interest rate on new purchases has climbed to 15.6%, creating a tenuous environment for cardholders and card issuers

... A "Brave New(/New) World"?