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?
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?
If you get paid via direct deposit and pay with everything via a card or a mobile app, a cu can replace your bank.
If you want complex investment options than I doubt all CU can do that, but I am sure there are some that can.
If enough retail depositors withdraw all their money and moved it to a CU I suspect they may trigger bank run limits which would cause other banks to preemptively limit withdrawals.
Thanks for the answer!
You mentioned paying for everything via card or mobile. Does that mean credit unions offer no options to withdraw cash?
Also can banks permanently limit withdrawals or transfers?
I’m going to answer the last part of the question, banks and credit unions and these institutions absolutely can, will, and do limit withdrawals. When you don’t physically hold your money and it is in an institution, it is no longer your money, it is an IOU with conditions that can be rescinded at any time for any reason.