Important Reasons to Bank with a Credit Union - Money Tip Tuesday

When it comes to financial institutions, we often select where to bank based on a particular product or service, but there are other reasons why choosing a financial institution is an important decision.

Credit unions offer up an ethical banking option for those looking to do business with companies that value people and their social impact as much as their own growth. 

Links:

• Learn more about Conscious Capitalism
• Check out TCU University for more financial education tips and resources! 
• Follow us on Facebook, Instagram and Twitter! 
• Learn more about Triangle Credit Union

Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.   

There’s a growing interest among consumers to support and do business with ethical companies, and there are many companies that want to be ethical and still maintain steady business growth.  

Because of this, there’s a movement spreading called conscious capitalism, promoting the idea that businesses within a capitalist system can seek financial growth and profits while at the same time maintaining strong ethics and a powerful focus on its social and environmental impact. 

The idea of conscious capitalism came from Whole Foods Co-founder John Mackey and author/marketing professor Raj Sisodia.  

They wanted to spread the idea that businesses can pursue growth and profits in a way that also serves the interest of all stakeholders rather than just corporate management groups and shareholders.  

The two men co-authored a book and eventually developed the organization Conscious Capitalism, Inc. 

Since then, many high-profile companies have joined the movement, such as Starbucks, Whole Foods, Trader Joes, Alphabet and others.  

When businesses adopt this philosophy, they choose to recognize the four principles of conscious capitalism listed out by Mackey and Sisodia.  These four principles are: Higher Purpose, Stakeholder Orientation, Conscious Leadership, and Conscious Culture.  

By incorporating these principles into their internal and external operations, businesses hope to improve customer and employee relationships, build brand loyalty with customers drawn to their mission, and engage more effectively with their communities. 

If you’re looking for businesses practicing a similar philosophy that seeks to impact their community and their environment in an ethical manner, look to local credit unions. 

Credit unions have woven the concept of providing quality financial products and services with a conscious, ethical mindset.  

Through cooperative finance, credit unions shine in many ways as a satisfactory way to access quality banking services and products while also making a positive impact on the community. Here are some of the top reasons to consider a credit union as your trustworthy and ethical financial institution.  

Great products: First, people want great financial products that fit their needs. They want capabilities that work well for their lifestyle and financial tools they can use to live their best life. Tools like mobile banking, contactless payment solutions, mobile wallet capabilities, and online applications are all features many people are looking for from a bank. The hunt for low fees and great rates – high deposit and low lending rates- also draws people to a great financial institution. Credit unions have continued to roll out all the digital tools and capabilities that serve all kinds of financial needs. They also historically offer better lending and deposit rates than commercial banks, making the credit union choice great for affordable auto loans and mortgages.  

Social responsibility: Second, many people care a lot about how socially responsible their financial institution is. They want to know their institution cares about people more than just making a profit. Credit unions do! They make a strong effort to participate in efforts that financially benefit their communities and focus on the social impact of their decisions. They consider their constituents' economic and environmental factors and strive to offer products and services that help underserved groups in the communities they serve.   

Customer service: Who wants to bank with an institution that only sees names as numbers? Being recognized and known as an individual is a key to member satisfaction. Credit unions pride themselves on customer service. Their member focus creates a communal atmosphere where every member is recognized and listened to. Members are the credit union's foundation, and time after time, many have shared how they love that they're treated like family when they walk in.   

Local involvement: No one knows the local community better than a credit union. It's made up of people living and working within the community, so it makes a dedicated effort to participate in local activities and events through sponsorships and engagement. Credit unions love to give back and show support to all the citizens striving to improve their local environment. It's essential for many people to know that their bank is committed to the many people living and working within the community, and credit unions do that all year round.    

If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  

Have a great day!