Question

Does the risk taking of banks and failures cause more individuals to move to credit unions?

Answer 1

Let us first understand what are credit unions.

Credit unions are non profit entities which works like bank, they give interest on deposits and charges on loan.

Generally credit unions has less volume of business than business, and they have less capital than banks. You need to be a member of the union to get the benefits of same unline banks. Since banks have abundance of data to protect, sometimes they fail on the part of security of customers data and because of which the customers has to lose their money. They even fail on giving higher returns and charges higher interest on loans.

Not for the risk taking, but due to its failures cause more individual to move to credit unions.