Everyone won’t benefit, but some businesses will. Occupy Albany participated in National Bank Transfer Day. Recently, a group of demonstrators in New York State’s downtown capital urged folks to close accounts at Bank of America and other large financial institutions and transfer money to local credit unions like SEFCU. They were protesting greed, bonuses, and fee hikes.
Bank of America had received $45 billion in bailout money. In September two of its executives were asked to leave, but not before receiving $11 million in severance. The financial institution received widespread criticism for plans to tack on a new ATM fee.
It along with several other large banks quickly backtracked when public outrage boiled over the top. Yet the damage has been done. National Bank Transfer Day may become an annual event. It’s a reminder that consumers have choices and should exercise them.
There is nothing illegal about raising fees. But when taxpayers have assisted the industry it initiates questions about trust. According to author and journalist Anna Bernasek corporate “integrity is a relationship of trust. There has been a lot of destruction of trust.” She adds that it is “the biggest opportunity for wealth creation today.”
Robert Gavin reported in the Times Union that the “Credit Union Association of New York issued a news release on Friday stating that since the Bank of America announced its plan for the debit fees Sept. 29, credit unions in New York have added 39,000 members and deposits have grown by $270 million.”
Other questions will be asked as National Bank Transfer Day solidifies as an annual event. How much profit goes to help charity or local non-profits? In the case of SEFUC, for example, 25 percent of its annual net income goes to local non-profits. Such commitment builds trust, good will, and shows an ethical approach to business. It makes for sustainable growth.
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