(Image Source: Flickr/tomblanton1957)

BY JESSICA SMITH 
 

ANCHOR CHRISTY LEWIS

 
It all started with a monthly five dollar debit card fee---and turned into mass exodus of big bank customers, who are flocking to small community banks and credit unions.

Frustration against the big banks peaked with the announcement of the monthly fees. But though the banks have backed off, that’s not enough for some customers. One customer, Kristen Christian, took to Facebook and launched “Big Bank Transfer Day”--set for November 5th.

She’s encouraging people to close their accounts with big banks. Here’s what she told ABC:

“I couldn’t support the system behind the 5 dollar fee structure that targeted anyone with less than 20,000 dollars in their accounts, because those people can’t afford it.”

“Now, 78,000 people say they’re going to join her. In October alone, Credit Unions reported an influx of 650,000 new customers. A 13 fold spike from their average month.”

It seems like a major loss for big banks, but the Street points out that “the holiday” could be a win-win for everyone.

“Banks like Bank of America are betting that they will only lose customers who are not profitable to begin with- the ones who carry low balances. The cost to service those customers outweighs the money they make from them, goes their thinking.”

(VO)
The same article also quotes a small bank president, saying:

“We are not deluding ourselves into thinking we are going to take massive share from Bank of America. But we will get a sufficient amount of share that will be enough to benefit our shareholders."


And a contributor for Forbes ask, will the Bank Transfer Day change anything?

“If awareness is the goal, then supporters of Bank Transfer Day can pop the champagne already … The 80,000 consumers who have pledged to move their money won’t break a sweat on banking executives’ brow quite yet. To put it in context, that’s less than 1 percent of Bank of America’s 57 million customer base.”

On the same day, The Occupy Wall Street movement donned their Guy Fawkes masks and celebrated the 5th of November, some of them pulling their accounts from big banks. But the Big Bank Transfer Day Facebook page made sure to separate itself from the protests, saying:

“While the Bank Transfer Day movement acknowledges the enthusiasm from Anonymous and Occupy Wall Street, the Bank Transfer Day movement was neither inspired by, derived from nor organized by Anonymous or the Occupy Wall Street movement, and the Bank Transfer Day movement does not endorse any activities conducted by Anonymous or Occupy Wall Street.”


 

Business News: Bank Transfer Day

'Bank Transfer Day' - Will it Affect Big Banks?

November 5, 2011
(2:07)
Customers are taking their money out of big banks and moving it to credit unions.
   
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