Credit union effort gives some community banks a boost

Saturday, Nov. 5 was "Bank Transfer Day," a largely social media driven campaign to encourage people to transfer their money out of "big banks" and into credit unions and community banks. Some news reports said as many as one million people moved their accounts during the month leading up to Nov. 5 . "Bankers are speaking very positively about Bank Transfer Day but are frustrated that the media has given such one-sided coverage to the credit unions," said Andrea Cusick, senior vice president communications at the Community Bankers Association of Illinois.. Media have focused on unverifiable estimates provided by the Credit Union National Association, saying at least 690,000 consumers across the nation joined a credit union. CUNA said they added $5.2 billion in deposits between Sept 29 and Nov. 5.. Banks also reported gaining new business as a result of Bank Transfer Day. "Our office in Minneapolis was quite busy with a noticeable uptick in business," said Suzanne Sjoselius, the spokesperson for the $360 million Northeast Bank. There was a "high volume of customers for a Saturday, who came from other banks and wanted a community bank that didn't charge fees," added Jeremy Brache of Northeast Bank.. The Independent Community Bankers of America, which operates a "community bank locater" through its web site, said usage was up substantially. Typically averaging 377 hits per day, the site had 4,000 hits in the days just prior to Nov. 5. "As we tracked the discussion in the social media, we saw the reason that the big banks want to be perceived as community banks," said Chris Lorence, ICBA marketing officer. "The public differentiates a community bank from a national bank. The larger institutions get a negative reaction in the social media.". Bankers "are seeing increased activity in terms of new accounts being opened, though it is not clear what has motivated people to change to new institutions," said Mark Loeffel vice president of the $543 million Great Midwest Bank in Milwaukee. "I do see a distinction being made in my community between a nationwide bank and community banks. A lot of people want their mortgage serviced by a local bank and there is an emphasis on small over large banks," he added.. The Independent Community Bankers of Minnesota said it is polling its members to assess the impact of Bank Transfer Day. "It's been positive, customers have been thoughtful about where they put their money," said ICBM President/CEO Marshall MacKay.