When John Stumpf appeared before the House Financial Service Committee, he swore to tell the truth. Representative Brad Sheran noticed that the embattled Chief Executive Officer of Wells Fargo and his colleagues were involved in unethical practices. Mr. Stumpf admitted that Wells Fargo employees had opened many accounts and applied for more than 565,000 credit cards on behalf of unknowing customers. He apologized for the actions of his employees and insisted that the practices did not reflect the true nature of the company.
Consumers of the bank were left asking themselves if they should remove their funds from the multibillion-dollar, profit making bank or stay with them. Many people are worried about putting their money in the major financial institutions. A survey done by the Brunswick Group concluded that 65 percent of American respondents preferred having their money in smaller banks. Moreover, 79 percent of the interviewees said that they would vote for a presidential candidate who would increase bank regulations. There are different options for individuals seeking new financial homes.
Credit unions are non-profit cooperatives that exist to serve their members. Ed Mierzwinski has always conducted his business with credit unions since he was young. He is the Consumer Program Director for the Federal State of Public Interest Research Groups. The problem with many major banks is that they serve their consumers and investors at the same time. Mierzwinski stated that many people stay with big banks because they feared to spend a lot of money in A.T.M. fees at smaller financial institutions. He also said that other people worry about being denied credit union membership. However, the Credit Union National Association offers a search tool for people to find suitable institutions near their residence. Before switching to a credit union, you should ask yourself whether you can deposit checks using your phone and make payments via a free wire transfer. If you consider these factors, you will be able to make the right decision regarding switching to a credit union.
You can decide to go for smaller banks that are in line with your values to save your money. Small banks offer trademark personal service. They are more relationship-based than profit-making oriented. Their branches are smaller and more intimate. Small banks offer lower fee-checking fees than big banks they also offer lower overdraft fees and balance requirements to avoid checking fees. Moreover, small banks offer more commercial loans than big banks.
Start-ups offer a solution to young people seeking a modern solution to their financial needs. The main aim of start-ups is to become better than companies like Apple and PayPal. Start-ups do not offer competition to the existing big banks. Zero Financial is a start-up that focuses on everyday finances. Moreover, they offer a Visa card that is linked to an account to track daily balances and transactions. Most start-ups offer higher cash bank rewards than a debit card would and promise great values.