Masked men near a bank branch usually spell trouble, but some local credit unions are rolling out a welcome mat.
Although they don’t officially endorse it, several local credit unions wouldn’t mind picking up new customers from Bank Transfer Day, a movement that hatched online on the coattails of the Occupy Wall Street swell.
Bank Transfer Day’s mascot is a masked revolutionary made popular in a Hollywood blockbuster, and the movement has set Nov. 5 as a deadline for Americans to move their money from large national banks to smaller financial intuitions.
It’s the second time in recent weeks that small institutions have tried to capitalize on public disgust with big banks.
Many local institutions recently launched ad campaigns targeting customers of big banks that had announced they would begin charging fees for debit card transactions.
The prospect of paying those fees helped spark 27-year-old Kristen Christian’s idea for Bank Transfer Day.
The California woman was fed up with big banks, so she took to the social media world, and people seem to be listening.
About 50,000 people have RSVP’ed to participate in Bank Transfer Day, according to the campaign.
That number has caught the attention of credit unions across the country, including several in the Richmond area.
George Kite, CFO of locally based Call Federal Credit Union, said Call is definitely monitoring the movement.
“It appears to still be an informal movement but has the potential to grow into something very substantial,” Kite said.
He said Call FCU has not officially endorsed the Bank Transfer Day movement but added, “We are very happy to see such renewed interest in supporting local community financial institutions. … We would see it as a benefit for local financial institutions if this event serves as a catalyst for acquiring new member relationships.”
Call is still feeling the effect of searches for free checking, and this movement could keep that momentum going.
“We have really seen an uptick in new members and new checking accounts ever since the [Bank of America] announcement,” he said.
Organizers have been quick to point out that Bank Transfer Day has no affiliation with Occupy Wall Street, which has drawn criticism for lacking a clear message.
But the minor uprisings do seem to attract an audience that small banks and credit unions would love to reach.
Glenn Birch, a spokesman for Virginia Credit Union (the largest credit union in Richmond), said financial institutions of all sizes have trouble getting the attention of younger customers.
“Perhaps this will spread the word that consumers have options for financial services that can offer a good value for them. Our aim is to be ready to be available and helpful to those who decide to join,” Birch said.
Virginia Credit Union is making some staff adjustments to make sure it can accommodate any influx of customers between now and Nov. 5
As for that date, there’s a reason Kristen Christian chose it.
Nov. 5 is known as Guy Fawkes Day, the day a plot to blow up the English Parliament building was thwarted in the 1600s. The day was made even more famous by the movie “V for Vendetta,” in which a vigilante wearing a Guy Fawkes mask carries out a similar plot.
That mask is the mascot of the Bank Transfer Day movement.
As Christian explains on the campaign’s Facebook page: “I started this because I felt like many of you do. I was tired– tired of the fee increases, tired of not being able to access my money when I need to, tired of them using what little money I have to oppress my brothers & sisters.
“Me closing my account all on my lonesome wouldn’t have made a difference to these fat cats. But each of YOU standing up with me… they can’t drown out the noise we’ll make.”
Michael Schwartz is a BizSense reporter. Please send news tips to Michael@richmondbizsense.com.
Terrific idea – I abandoned big banks a while ago for a credit union for personal banking, and community banks for business accounts. I may not be occupying Wall Street, but I fully support abandoning big banks tied to Wall Street.
BTW, that face is the totemic image of Guy Fawkes, the focal point of Guy Fawkes Day/Night in Britain. Fawkes was behind the Gunpowder Plot in 1605, which tried and failed to blow up Parliament in an effort to overthrow King James I and return the thrown to a Catholic monarch. Guy Fawkes Day/Night celebrates Fawkes’ failure by burning effigies of him, and the Pope.
Maybe there will be logo effigies of BofA and Wells Fargo on fire in RVA on 11/5?
I continue to be disturbed by comments and actions like Ms. Christian and the Occupy Wall Street protestors. There seems to be a growing animosity towards our banking and capital markets industries. When in truth, there should be an animosity towards the lawmakers in Washington, such as Frank, Dodd and Durbin. The Dodd-Frank Act, and the subsequent Durbin Amendment, is what has begun the dismantling of the financial structure which enabled free checking and debit cards for the consumers. Consumers have received a number of financial services at no direct cost to them because of the financial arrangement between banks and merchants. Prior to the Durbin Amendment, merchants paid a debit card/swipe transaction fee of about $0.44 per transaction; after the new law went into effect on October 1, 2011 that fee was reduced to a maximum of $0.21 per transaction. However, the infrastructure costs to the banks have not changed, so these indirect costs have to be paid by someone. Because banks now have the audacity to seek lost revenue directly from the consumers to pay for this infrastructure, the banks are evil. What about the merchants who have failed to pass along their debit card savings to the consumers?
As for the suggestion that consumers leave their banks for the credit unions that are still willing to provide “free” banking services, they may want to remember that credit unions are the only financial institutions that are Exempt from paying taxes. With that kind of “economic advantage”, one could only hope that they would take some of their untaxed profits and provide their members with free services. However, as Ms. Christian and the Occupy Wall Street protestor seem to think this country is not founded on free market capitalism but rather principals of entitlement. Financial services, such as checking accounts and debit cards, have a cost and they are not an entitlement. And any profit the banks may make with these new fees, at least they will pay taxes to help support this country, unlike credit unions. So before Ms. Christian starts another “campaign”, maybe she should be a little more educated.
While “Anne” the banker is busy pointing fingers in her comments (above), she conveniently bypassed what banks did to draw the attention of Congress in the first place. Dodd, Frank and Durbin cast their gaze on the banks because the industry was screwing people with things like Universal Default Clauses on credit cards and manipulative accounting systems designed to maximize overdrafts. And let’s not gloss over all the collateralized debt obligations, credit default swaps and other mortgage backed securities that brought the world’s economy to its knees.
Yes, a strong lobbying effort by retailers helped push the Durbin Amendment through. But Congress was primed and receptive to retailers’ lobbying efforts because banks had put themselves in the position to be bullied.
An industry that doesn’t want onerous regulations should take care to keep themselves off Congressional radar in the first place.
And for the record “Anne,” as a banker, you are well aware that credit unions do indeed pay taxes. As not-for-profit financial institutions, they are exempt from paying federal taxes, but they pay all the other taxes that any other company/corporation pays — state, county, municipal, employment, etc.
Lets be honest here folks both ‘Anne” and “Jeffry” There is more than enought blame to go around. This issue like so many we face is not as simplistic as we want them to believe.
Watch the Inside Job documentary. Fascinating and disturbing.
The country’s financial structure was undermined by big banks and investment firms. There would be no need for the Dodd-Frank Act if Greenspan and the Investment banks learned to recognize greed on a massive scale. The Occupy groups just want those who started this mess to be held accountable as any American should. I don’t think that’s a lot to ask. Some are preaching socialism, but they are morons.