News

Study sums up 'Bank Transfer Day' impact

February 6, 2012

About 610,000 U.S. consumers changed banks on Bank Transfer Day in October, according to a news report in the Sacramento Bee. Bank Transfer Day was a social networking movement to persuade consumers to switch from commercial banks to nonprofit credit unions in response to Bank of America’s levying a $5 monthly fee on debit card holders (which it retracted due to public outcry).

The 610,000 number represents roughly 11 percent of 5.6 million people who switched banks overall during a three-month period between October and December, according to Javelin Strategy & Research.

Although Bank Transfer Day didn't produce a mass exodus of customers, it was still significant, said Javelin founder and president Jim Van Dyke. The number of "angry bank-switchers" leaving their bank was nearly triple those who left for similar reasons in 2010, he said.

Bank watchers say consumers can expect more new fees — including the gradual loss of "free" checking — as big banks try to recoup billions in revenue lost due to congressional reforms.

Van Dyke predicted a shift "from punitive to proactive" fees. Instead of focusing on overdraft fees or other punishments, he said, banks will move toward clearly stated fees for services that "protect you or save you in the long term." For instance, he said, banks could offer fee-based identity-theft protection for financial accounts. Or customers running late with a mortgage or car payment could pay the bank a small fee for "expedited payments" in order to avoid a late-payment penalty.

For more information on this topic, visit our bank/credit union research center.