Occupy Movement Inspires Grassroots Bank Transfer Day
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Last Saturday, community banks and credit unions in the United States saw a record amount in daily incoming transfers, as customers moved funds out of big financial institutions.
The occupy movement, whose agenda is still not quite yet defined, on Saturday inspired a grassroots level Internet-launched call to move money from the big transnational financial institutions down to the neighbourhood level.
Last Saturday, community banks and credit unions in the United States saw a record amount in daily incoming transfers, as customers moved funds out of big financial institutions.
The occupy movement, whose agenda is still not quite yet defined, on Saturday inspired a grassroots level Internet-launched call to move money from the big transnational financial institutions down to the neighbourhood level.
Credit unions and small banks across the country reported a spike in account openings over the weekend, thanks to the Bank Transfer Day and Move Your Money initiatives, a movement that encourages consumers to use their money as voices in protest over increasing banking fees from the larger institutions.
The National Association of Federal Credit Unions reported a tripling in new checking account openings this weekend in several cities nationwide, including Seattle, Charlotte and Maryland. According to the Credit Union National Association, around 650,000 banking customers opened new credit union savings accounts in October, totalling more than $4 billion. The NAFCU also reported a 700% increase in new account openings last month compared to October 2010.
According to the Bank Transfer Day Facebook page, the movement was propelled in large part by large banks’ plans to charge monthly fees to customers who made purchases with their debit cards. The banks have decided to shelve those plans, but outraged consumers vow to find alternative banks.
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Related: Debit card fees, Credit card annual fees
Local news outlets around the United States produced reports of irate customers taking their business away from big banks, sometimes in conjunction with the Occupy Wall Street protests that have moved well beyond lower Manhattan and into cities throughout the U.S.
The Philadelphia Inquirer tells the story of a couple inspired by the protests who switched from Bank of America to a community bank, and news channel KGW out of Portland, also interviewed fed-up customers who are moving their money from big banks. The Denver Post says more than 1,000 protesters marched from bank to bank and urged customers there to close their accounts, while the Colorado Independent says local credit unions have acquired $100 million in new deposits within the past month.
Still, given that the money involved so far represents a minuscule fraction of overall banking assets, many financial analysts wonder about the lasting value of Saturday’s social action.
“While it has caught the attention of bank customers nationwide, the impact is expected to be modest,” said George Conboy, president of Brighton Securities, to the CSMonitor. Chase alone has more than 2 million checking accounts, he points out, so even if thousands of various online pledges to move accounts are also fulfilled, “the impact may not be much.”
