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Survey Shows Most Americans Believe Big Banks Will Disappear
Monday, October 31, 2016 6:50 AM

A recent article on Inc.com, discusses a survey of more than 2,000 Americans, 57 percent of which believed traditional banks as we know them today will cease to exist within our lifetimes. Venture firm Blumberg Capital conducted the study.

If this prediction turns out to be right, most of us won't be a bit sorry. A whopping 80 percent of respondents said big banks are too focused on serving the 1 percent and big businesses at the expense of small businesses and average consumers. More than 60 percent of respondents said banks are charging them too much interest on their debt, and 76 percent believe banks don't properly serve those with low credit scores or bad employment histories.

They also think traditional banks are failing at supporting entrepreneurs. Fifty-nine percent said they would rather either borrow money from or lend money to a family member or friend to grow a small business—instead of paying, or having their friends pay, high interest to a bank.

The article noted five alternatives to the too-big-to-fail financial behemoths: credit unions, community banks, internet-only financial institutions, online brokers, and alternative investments and credit.

"In the last few decades, credit unions have really come into their own as full-fledged financial institutions that provide most or all of the same services big banks do," the article reads. "They differ from banks in some important ways: First, they are not-for-profit organizations intended to benefit their members rather than rake in the cash. That means they usually offer lower fees or no fees for account, lower overdraft fees, better interest rates on credit cards, and better savings account rates than traditional banks."

The article continues, "Credit unions are governed democratically by their members, and they all have membership requirements. But for some, those requirements make it very easy to join."

Read more at Inc.com.