COMMENTARY | I, along with many other people, switched to a credit union since Bank of America began charging customers for using their debit cards. The additional fee finally made me realize that banks do not care about the customer.
The Credit Union National Association reported that more than 650,000 people switched from traditional banks to credit unions since BOA announced this debit card fee. Bank Transfer Day, a social media-centered movement, has sprung up encouraging people to withdraw their funds from traditional banks and move those funds into credit unions or other financial institutions.
Bank of America, as well as other banks, recently announced that it was discontinuing the debit card fee, but the damage is already done. I can attest to that. I will not be moving my money back anytime soon and I am sure no one else will either. Research Intelligence Group conducted a survey that found one-third of the banking customers surveyed said they would remove their money from their bank if the bank added a fee for using their debit card.
Besides the additional fees, I think more people are putting their money in credit unions for other reasons. Unlike the for-profit commercial banks, credit unions are not-for-profit institutions. Another factor that convinces people, and myself, to move my banking to credit unions is the fact that I become a shareholder and vote for who will be placed on the board of the credit union. Everyone who banks at a credit union becomes a shareholder and has a say in who manages the bank.
Another reason I switched from a bank to a credit union is I get better service at my credit union and everyone seems to know my name when I walk in the building. Even the manager waves at me, even if she is with a customer. Most banks do not have this kind of atmosphere. I believe the service is better and friendlier, even if the credit union is not national. If you pick the right credit union, you can still get online banking access, as well as other customary banking services.
My credit union is handing out switch kits to new credit union members so they can give them to their friends and family. The President of CUNA recently stated that several new customers are doing whatever they can to help generate interest in credit unions.
It seems that if banks do not get their act together and start treating their customers with a little respect, the only customers the banks will have are business customers.