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 non-profit credit unions. The movement, which grew out of the scathing reaction to Bank of America’s since retracted decision to charge for debit card use, has declared Saturday “Bank Transfer Day.”

The day’s Facebook page, which has over 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.

Locally, some credit unions are feeling the love.

Dawn Scott-Barill, CEO of Southern Butler County Community Credit Union said there has been a slight spike in membership over the last month.

“I would say we’ve increased by 15 members, which, for us, is a lot,” she said.

Serving anyone who lives, works, worships or attends school in southern Butler County, including , Adams, Mars, , Evans City, and the credit union has about 1,200 members, Scott-Barill said.

While Southern Butler County Community has seen a bump in membership, Scott-Barill said there’s likely a greater influx in the Pittsburgh area’s larger credit unions.

“We’re a smaller credit union,” she said. “Some of the larger credit unions have a lot more publicity on this, so I’m sure they’re getting more responses because of their size.”

In Sewickley, Ardell Montgomery, branch manager for , has noticed a spike in membership as well as interest. Clearview's branches serve people in a wide swath of communities, including Wexford, Moon, Robinson and Hopewell.

“We have seen an increase, not only in membership, but also in questioning what credit unions are, who we are, what we do,” he said.

Montgomery was unable to give specific numbers, but he said the increased walk-ins and phone calls are noticeable at the . He noted that nationally 650,000 new credit union members already signed up in the past four weeks.

Unlike big banks, credit unions are non-profits 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.

While Bank Transfer Day’s anti-big finance sentiment echoes that of Occupy Wall Street, the two movements are not officially aligned.

Scott-Barill believes the anger at financial institutions, as well as Bank of American’s unpopular proposal to start charging fees for debit transactions, brought renewed attention to credit unions. Traditionally, she said people have seen credit unions at exclusive services, or thought they would not be eligible to join. That sentiment is now changing.

“I do think it has an impact because it brings to people’s attention the question, are you willing to have these fees when you could go to another financial institution and we can provide you with the same services and you’re not going to get these fees,” she said.

Unlike a f, banks like Clearview and Southern Butler County Community aren’t offering any new perks or specials for “Bank Transfer Day” on Saturday.

Scott-Barrill said the credit union will continue to run its normal monthly specials, including a new holiday loan sale. She noted credit unions are member rather than profit-oriented.

“I just think that if people aren’t happy with their financial institutions, or the fees they charge, they really should look at credit unions because our credit union has a very different philosophy,” she said.

Sewickley Patch Editor Larissa Dudkiewicz contributed to this report.