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News Now

CU System
iAOLi Fee backlash cost banks 2M customers
MADISON, Wis. (2/9/12)--Credit unions continue to see strong, positive effects from Bank Transfer Day, with continued media coverage of consumer's opting for more affordable financial services alternatives. 

A recent AOL Daily Finance article compared switching financial institutions with leaving a slightly abusive girlfriend--citing a 2011 Pew study that revealed the average bank account has 49 fees.

The article cites a recent study by Javelin Strategy and Research which said that 11% of the 5.6 million people who switched banks over the last three months--about 610,000--did so as part of "Bank Transfer Day," which was spurred by Bank of America's announcement to begin charging its customers $5 per month to use their debit cards for purchases. BofA ended scrapping the plan.

Another of 26% customers who switched financial institutions during the last 90 days--about 1,456,000 consumers--also cited new bank fees as the reason for the switch.

Also, the people who switched banks trended toward higher incomes, according to the Javelin study.

"As these higher-wealth, generally older consumers continue to consider their banking options, it seems likely that America's largest banks are going to continue hemorrhaging customers," the article said.


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