Credit Union Membership Spikes With 'Bank Transfer Day'

Credit unions are reporting huge bumps in business as people pull their money out of banks and put it into nonprofit credit unions. The movement, which grew out of the scathing reaction to , has declared Saturday “Bank Transfer Day.”

The day’s Facebook page, which has more than 75,000 “attendees,” says: “If we shift our funds from the for-profit banking institutions in favor of not-for-profit credit unions before this date, we will send a clear message that conscious consumers won't support companies with unethical business practices.

And local credit unions are feeling the love.

 in New Lenox has definitely seen a spike in new members opening accounts for the first time or opening additional accounts from what they had before, said Debbie Bachmann, the credit union's vice president and COO. 

"We're definitely hearing the voice of the people coming in, and they're not happy," Bachmann said, adding she didn't have specific numbers.

That unhappiness hasn't gone away even though banks have backed away from their fees. 

"It's really left a bad taste in people's mouths," said Kim Nichols, assistant vice president of marketing for , which has branches throughout Will County, including Frankfort.

In fact, many new customers are afraid the banks will just create different fees, said Kari Endres, the marketing director of , which has branches in Tinley Park and Joliet. 

From Sept. 28 to Oct. 31, NuMark has seen a 78 percent increase in new customers compared to last year, Endres. The credit union als has had a 151 percent increase in deposit balances, which includes services such as CDs and savings and checking accounts, she added.

The biggest challenge credit unions have faced during this time is educating people on just what a credit union is. 

"Credit unions, unfortunately, are one of those best kept secrets," Endres said.

Credit unions, unlike big banks, are nonprofits that are owned by their members and have no stockholders. They offer the same services as banks, including checking and savings accounts, credit cards, loans and trusts. In the past, people usually joined credit unions affiliated with their place of employment, trade or a community group. But most credit unions now have community charters that allow them to serve anyone in their geographic area, Nichols said.

And some credit unions certainly play up that local connection to its customers. NuMark's brand philosophy "You are family," Endres said, adding that employees live in the communities where their branches are. When the Tinley location was opened in January, NuMark hired people from the community, she said.

"All of our decisions are made locally because we're locally owned," Endres said.

It's an attitude that's appealing to customers sick of dealing with corporate banks.

"I love the old-fashioned thought of having a relationship with the bank and basing my relationship off more than just credit scores," wrote New Lenox resident Stacey Cannon on the New Lenox Patch Facebook page. "I don't pay for anything more than checks I order. ... Although I do still have a account with Harris (Bank), which has been a good bank, my main account is with (Abri in Frankfort)." 

While Bank Transfer Day’s anti-big finance sentiment echoes that of Occupy Wall Street, the two movements are not officially aligned. Abri and New Century aren't doing any special deals for the day. Although not an official incentive, NuMark is giving customers who open a new checking account $5 as a thank you, Endres said. 

The Big Question: Are you a member of a credit union? Tell us why in our comments section. Also, leave a review of your credit union in the Patch Places business directory, explaining what's great--or not so great--about the institution.

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