patching...
Welcome back, Patch Blogger!

Credit Union Membership Spikes With "Bank Transfer Day"

Local non-profit credit unions seeing lots of new interest as a result of anti-Wall Street sentiment.

 

Credit unions are reporting huge bumps in business as people pull their money out of banks and put it into non-profit credit unions. The movement, which grew out of the scathing reaction to Bank of America’s since retracted decision to charge for debit card use, has declared Saturday “Bank Transfer Day.”

The day’s Facebook page, which has over 75,000 “attendees,” says: “If we shift our funds from the for-profit banking institutions in favor of not-for-profit credit unions before this date, we will send a clear message that conscious consumers won't support companies with unethical business practices.

And local credit unions are feeling the love.

“We’ve definitely seen a spike,” said Jennifer Kulkoski, marketing director for First Financial Credit Union in Skokie, which serves people living in a wide swath of the city and northern suburbs.

In a normal month, about 30 new people open up a checking account, she said. In October, 61 did. The credit union’s website and Yelp review page have also seen increased traffic. Most of that activity came in the second half of the month after the backlash against Bank of America started.

First Financial is marking Bank Transfer Day by having an open house with refreshments on Saturday.

“We’re treating it as a general celebration of, ‘Yay, the word is out,’” Kulkoski said.

Credit unions, unlike big banks, are non-profits that are owned by their members and have no stockholders. They offer the same services as banks, including checking and savings accounts, credit cards, loans and trusts.

While Bank Transfer Day’s anti-big finance sentiment echoes that of Occupy Wall Street, the two movements are not officially aligned.

Glenview Credit Union started seeing an increase in members about three years ago when anger at financial institutions due to the mortgage crisis and recession started cementing. It took off like crazy with the Occupy Wall Street movement and Bank Transfer Day announcement, according to Director of Marketing Kathleen Quinn.

“It’s huge for us,” she said.

The credit union, which serves people who live or work in Northfield Township as well as B’nai B’rith members, has seen people from 20 to 75 years old sign up as new members recently. Some say they’re making a political statement, some noted that they wanted to leave Bank of America, and some just want a change, Quinn said.

First Northern Credit Union, with branches across northern Illinois, isn’t settling for just one day of recognition for credit unions. It’s declared all of November “Bank Transfer Month.”

In a riff off of Bank of America’s $5 proposed debit card fee, First Northern will pay $5 a month to new members who open a checking account, get electronic statements and use their debit card at least once a month, explained James Smith, a manager at the Evanston branch, which is open to Evanston residents and people affiliated with Northwestern University as well as several other employers.

Smith’s office saw a jump from an average of 40 new members a month to 70 in October. Many of those were Northwestern undergraduates, a group that has historically not been terribly interested in the credit union because of the school’s close relationship with U.S. Bank, Smith said. But he has signed up a number of students in the last few weeks who dropped their U.S. Bank accounts in favor of the credit union.

The Evanston branch saw the biggest October increase compared to the credit union’s other five branches, Smith said. In addition to the students, he’s seen interest from older people, including retirees.

“People are really feeling like, okay now’s the time” to switch, he said.

(If an act of financial rebellion isn’t enough for you and you prefer to take your protest to the streets, there’s a “Make Wall Street Pay” rally in Oak Park Saturday set to coincide with Bank Transfer Day.)

  • What do you think of traditional banks? My opinion of them ...

    (Voting has been closed for this question)
    • soured because of the financial crisis
        74 (52%)
    • soured because of Occupy Wall Street
        12 (8%)
    • remains the same — low
        45 (32%)
    • remains the same —high. They're valuable financial institutions.
        9 (6%)
    Total votes: 140
  • Your vote will only count once. This is not a scientific poll. View Results Vote!
Related Topics: Bank Transfer Day, Credit Unions, First Financial Credit Union, First Northern Credit Union, Glenview Credit Union, Occupy Wall Street, and Small Business
What do you think of Bank Transfer Day? Has it changed how you think about your financial institution? Tell us in the comments.

Gil Sharon

7:01 am on Friday, November 4, 2011

You know what would have been good journalism? A listing of Credit Unions within your readership area. Much more useful than some anecdotes about how business is booming at some random Credit Unions.

Reply
Comment_arrow
Patch_comments_icon

Emily Stone

7:57 am on Friday, November 4, 2011

Great idea, Gil! There are too many to list, but here's a link to the Illinois Credit Union League's website, which lists credit unions by geographic area: http://www.iculeague.org/Websites/

Patch_comments_icon

Pam DeFiglio

8:14 am on Friday, November 4, 2011

Here's one offering a 1.0 return on CDs, good through Monday: Northwest Community Credit Union, 8930 Waukegan Road, Morton Grove, nwccu.com. It's been in business since 1939, started at local Catholic parishes. To join, you have to live or work in Niles Township or Maine Township, or be part of neighboring member parishes or employee groups (includes the Village of Niles, Niles Park District, Resurrection Hospital, etc.) I spoke to Mike DiFoggia, head teller, who said they survey neighboring banks each Tuesday to set their interest rates.

Reply

Glenview Credit Union

8:43 am on Friday, November 4, 2011

We hope everyone can locate a credit union! Here is one way to do that:
http://www.lovemycreditunion.org/

Reply

Mike Boyer

10:33 am on Friday, November 4, 2011

Shopping local is most important...supporting business that supports little league, parades, local charities...thats includes small local banks. Big business donates because they have to..local business does because they are part of the community. If you dont like big banks then ask the quetion why is it so hard for small, local banks to survive and compete. Theres right and wrong..you have to choose one.

Reply

rivera milque

7:02 am on Saturday, November 5, 2011

Local shopping is so important these days. There are some small banks still - but many are disguised to appear to be a neighborhood bank and they are just a part of a huge group. That is why I love the credit union movement because members hold the shares and help run them. we must understand that all businesses survive on profits-but profits must be fair as well,no?

Reply

Leave a comment