November 5, 2011

Bank Transfer Day is a yawner

November 5th is Bank Transfer Day. It's an Occupy Wall Street related ploy to stand up to the banks and their crazy fees.  It's a push to move to Credit Unions.  It's also a few other things.  For example
Bank Transfer Day -- the protest movement urging Americans to take their business out of big banks on Saturday and put it into credit unions and local banks -- is being used as a marketing opportunity by some.
Opportunist.  That's fine - if a business has an opportunity to take advantage of, assuming it's not unethical, it should do so.  

But it's also an avoidance of the real issue - the banks are responding to government new rules that force them to look elsewhere to protect their profits.  The free market will dictate whether the new fees hold up in the market place. Which brings us to the next thing that Bank Transfer Day is - a yawner.

Sure, there may be some movement, but my guess is at most, 5% of the population is going to switch to a credit union.  Think of the barriers to exist - existing pre-authorized payments, online banking bills all set up, mortgages, lines of credit, credit cards.  Switching is an onerous task.  So it's not gonna happen for most people. 

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