A Closer Look At Bank Transfer Day

Happy Bank Transfer Day!

In light of the decision by many large banks to start charging consumers fees for their debit cards, Kristen Christian created Bank Transfer Day. The movement has a simple message: Move your money from banks to credit unions by today, November 5th.

By some estimates, 650,000 consumers have already moved $4.5 billion in assets to credit unions. It’s not a surprise that so many consumer are making the move, because the Bank Transfer Day movement taps into a basic reality: consumers like credit unions more than they like banks. I examined the data for banks and credit unions from the 2011 Temkin Experience Ratings, 2011 Temkin Loyalty Ratings, 2011 Forgiveness Ratings and 2011 Trust Ratings. Here’s what I found:

Credit unions deliver a better experience which has earned them higher levels of loyalty across all five areas we measure. And this data excludes USAA customers, which would have made the credit unions  look even better. Only Regions holds its own against credit unions.

The bottom line: If customers don’t like you, then you are always at risk

Written by 

I am an experience management transformist, helping organizations improve business results by engaging the hearts and minds of their customers, employees, and partners. My "job" is Head of the Qualtrics XM Institute. The Institute is still being established, but our goal is to help organizations around the world thrive by mastering Experience Management (XM). As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. And, as many people know, I love to speak about these topics in almost any forum. Prior to joining Qualtrics, I was managing partner of Temkin Group (leading CX research, advisory, and training firm), co-founder and chair of the Customer Experience Professionals Association (CXPA.org), and a VP at Forrester Research. I'm a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Check out my LinkedIn profile: www.linkedin.com/in/brucetemkin

3 thoughts on “A Closer Look At Bank Transfer Day”

  1. Whether it is banking, Wall Street or other corporate brands… executives are ignorant of the effect social media has on traditional word of mouth. My father always chastened that a satisfied customer tells another person… the others tell 10! Now that was 30 years ago and today the ratios are higher.

    Most of these “corporate leaders” and the leader title is a bit sarcastic since they are not leaders, are out of touch with social media and filled with hubris. Anyone with a nominal knowledge of the power of social media in the word of mouth cycle could have predicted the blow back on the debit card fees.

    Apparently, competition does exist in banking and the community banks understand this.

    Consumers are empowered, they know it. Can the banks understand this? Probably or not.

  2. As someone who works in the Financial Services industry (but not for a bank) I find this very humorous. Every time a bank adds new fees I hear of them from my customers and they get so frustrated with the banks. I am glad that where I work, while there are fees, none of them are hidden and we are very upfront about what we have out there for our customers.

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