Dispelling Credit Union Myths with President, CEO Dion Williams

Have you ever heard that credit unions can’t offer the same services as banks because they’re smaller? Or maybe credit unions aren’t tech-savvy and are less regulated than banks?

In a world that primarily revolves around banks, misconceptions about credit unions are everywhere.

In the first Headlines and Fine Print episode of 2025, PACU President & CEO Dion Williams dispels some common myths about credit unions.

Credit unions are small and can’t offer the same services as a bank.

When it comes to banking, size is not a disadvantage. Whereas many large banks treat you as just another number, we at PACU and other credit unions treat you as a person.

“Credit unions, on the whole, are smaller than our counterparts in the bank. We are a local place, locally owned, and a place you can visit,” Dion explains. “But unlike banks, we're going to know your name. We want to see pictures of your kids and grandkids and have personal conversations.”

Credit unions offer better customer service, but we also provide the same products and services as banks, such as mortgages, car loans, credit cards, and more.

It’s too difficult to switch accounts over from another institution.

Yes, there is a lot of information to track when switching financial institutions, but here at PACU, we aim to make the transition to our membership as seamless as possible.

With ClickSWITCH, changing financial institutions is as easy as pie. ClickSWITCH automates this process, and you can fund your new account online.

Credit Unions aren’t as sophisticated with technology.

We believe the perfect unity between people and technology can be achieved at PACU. While we pride ourselves on our service, we also understand technology's benefits. That’s why we upgraded our core processing system last year, and we offer online bill pay and banking.

“PACU is up to date, and credit unions, on the whole, are very up to date with technology. Yet at Piedmont Advantage specifically, we haven't sold out to artificial intelligence,” Dion says. “That’s because we understand it's a people business, and we very much focus on that personal relationship.”

Credit unions are local, so it isn’t easy to do business if you are moving or traveling.

One of the cool things about credit unions is that we are naturally cooperative. PACU and other credit unions participate in the shared branching network, where credit union members can do business at over 5000 locations in the U.S.  

So, if you are traveling or decide to move, you can still maintain your relationship with your credit union.

Credit unions are less regulated.

Credit unions are every bit as regulated as banks.

While the FDIC governs banks, credit unions are governed by the NCUA. Both provide insurance coverage for deposits to bank customers and credit union members. The insurance coverage amounts are the same and are solvent, safe and sound.

“With Piedmont Advantage being a state charter, we have a state regulator and a federal regulator, and then banks and credit unions fall under the jurisdiction of the CFPB, the Consumer Finance Protection Bureau,” Dion shares. “Some rules are supposedly geared towards the largest banks and credit unions. But the truth is the decisions and the rules they make trickle down and impact every financial institution in the country.”

Credit unions don’t pay taxes.

This myth lacks context. While credit unions are exempt from corporate income taxes, we pay property and employment taxes, and our employees pay income taxes on their earnings. Credit unions are not-for-profit financial cooperatives, so our “profits” are returned to our member-owners in three ways:

1. Members benefit from very competitive rates on loans and deposits.
2. Members benefit from low fees.
3. We invest in service delivery channels, products and services that enhance member experiences.

“Some of you may have heard, ‘Credit unions don't pay taxes, and that's how they have better rates.’ But that’s missing the whole point,” Dion says. “Credit unions are a cooperative; we're in business for our member-owners. Banks, however, are in business for their shareholders. The more shares you have, the more say you have. At credit unions, all of our member-owners are treated equally.”

Want to learn more about the difference between credit unions and banks, or have a topic you would like to hear more about? Contact Dion Williams at [email protected] or 336.750.7088.

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