Why Would You Change Your Bank or Credit Union Because of Values?

Financial institutions, such as banks and credit unions, play a critical role in managing our daily lives. They provide essential services such as lending, deposits, and financial advisory services. Many of these institutions have core values and ethical practices that guide their operations. What should you do if these values are no longer in line with your beliefs? Would you consider changing your bank or credit union?

Understanding the Value of Banks and Credit Unions

A bank is a financial institution that accepts deposits from the public and creates demand deposits while also making loans. These loans can be directly performed by the bank or indirectly through capital. In a diverse country, there are multiple banks and credit unions available to serve the population. If you do not agree with the values of your current bank or credit union, you have the right to shift your financial accounts to another institution.

While some individuals might be influenced by the values of their financial institution, others may prioritize other factors. For instance, if a bank manager inaccurately uses the word "loan" instead of "lend," it might trigger an individual's scrutiny of the bank's practices. In another instance, if a bank advertises in a manner that is perceived as socially insensitive, it might prompt a customer to reconsider their association with the bank.

Factors Influencing the Decision to Change Banks

There are several factors to consider when deciding to change a bank or credit union:

Service Quality: If the bank's service is consistently poor or falls short of expectations compared to other financial institutions, it might be a valid reason to switch. Corporate Values: If the bank finances companies that are environmentally harmful or unethical, it could also be a catalyst for change. Personal Values: Some individuals may choose to change their bank based on the institution's adherence to personal values, such as social justice or environmental concerns.

It's important to recognize that personal choices are subjective. What is right for one person may not be suitable for another. It is crucial to consider your own values and how they align with the institution's practices before making a decision.

Personal Experiences with Changing Banks

Personal experiences can offer valuable insights. I, for example, have changed my bank twice due to specific incidents. The first instance occurred when a bank manager offered to "loan" me money. Despite not voicing any concerns, I immediately closed my accounts the next day. Language accuracy, such as using "lend" instead of "loan," might seem trivial, but it can reflect on the institution's attention to detail and overall reliability.

The second incident involved Wells Fargo, which featured a lesbian couple in an advertisement in a way that was seen as offensive. As a matter of principle, I believe in the right of individuals to love and marry whom they wish without interference from their bank. Therefore, I decided not to use their services anymore.

Both of these actions were decisions that were right for me, but they may not be appropriate for everyone. It is essential to weigh your own values and the impact of these values on your financial choices.

Ultimately, the decision to change your bank or credit union should be based on a combination of personal values, quality of service, and ethical considerations. It is a strategic choice that can reflect your commitment to integrity and ethical standards.