One of the largest financial institutions in the world recently made headlines after it was revealed that it would no longer be issuing credit cards at credit unions.
Credit Union Times reports that Bank of America will be letting contracts expire with credit unions, which deal heavily in cash automation and check capturing, and would not be renewing them. The source explained that between 40 and 50 credit unions will have the relationship severed.
In a statement, the bank says that it was changing its strategy to better serve its customers and merchant services clients.
BofA said the “agent-bank relationship, where we issue cards on behalf of other financial institutions, was not core to our goal of building deeper relationships and we began the process of exiting those relationships. In many cases, our agent-bank business has serviced predominantly single-service card customers with limited opportunity for Bank of America to do more business with them.”
While the major banking company has decided to pull out of its relationship with credit unions, some customers have been moving money to the institutions. On November 5, a group of organizers led “Bank Transfer Day,” with thousands moving their funds to the credit unions.Back To Blog