The pressure is heating up on the major banks, with credit unions and smaller, regional banks reporting record membership applications as the tide continues to turn against the major financial institutions. Such trends had been going on for quite some time, but with the increased visibility courtesy of the Occupy Wall Street protests, credit unions have never looked better to consumers sick of fees, minimum balances, bailouts and terrible interest rates.
Several credit unions have been reporting their best membership application surges in their entire history, with rather predictable reasons cited for the shift. With credit unions offering superior rates, customer satisfaction ratings, and not having destroyed the global economy in unchecked gambling in recent years, credit unions have every reason to look forward to the next few years.
Of particular interest is the upcoming Bank Transfer Day, scheduled for November 5th of 2011, an event that has already garnered significant interest among its Facebook-based page and the media alike. Organizers give advice on switching from banks to credit unions without incurring exit fees from the bank, and offer advice on finding local credit unions for those unfamiliar with their options.
If such a movement is successful, it will significantly affect the ability of major banks to conduct the same sort of business they have been doing for the last several years, and it is clear such a shift is already underway; speculation is merely to the magnitude, not whether this will occur or not.
Such a seismic shift is likely to gain momentum, as satisfied customers will reiterate the lower rates, lack of fees and better customer service compared to major banking institutions, whose method of operation is for-profit, and thus the customers are not the priority of the business. One random internet comment put the situation rather succinctly: “We™re not really their customers. The shareholders are their customers. We™re more like their livestock.” And it™s a trap that a for-profit operation will never abandon.
If banks are to reverse such a trend, they will have to offer better rates and better customer satisfaction than credit unions, which, if they have any hope of accomplishing such a task, will by necessity mean lower executive pay, lower profit margins, and lower self-indulgent “business expenses” which the customers are essentially required to pay. This is, quite clearly, rather unlikely. But if enough business is lost, they will have no choice but to adapt in some way, or become simply an investment bank rather than a consumer institution.
Getting particular attention have been Bank of America, Chase Bank, Citibank and Wells Fargo, particularly due to the mortgage crisis, in which banks were able to gamble with enormous sums of money and reap the benefits, but left the taxpayers on the hook for any failure they experienced. If these banks ever hope to recover from their hubris, they™ll have to run an incredibly good business from here on out, likely for decades on end. But once someone switches to a credit union, getting no fees and better rates, switching back is going to be pretty unlikely.
Look up a credit union today, and vote with your business.
Author Resource:-
Read about the services from some of the lesser-known participants or subsidiaries that were involved in the crisis, such as the services of Wachovia Online Banking Login security requirements, and Union Bank Online Banking.
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