Explaining Southern California's economy

How will small banks handle Bank Transfer Day?

tomblanton1957/Flickr (cc by-nc-nd)

An Occupy Wall Street image for Bank Transfer Day.

Even though Bank of America has made the unusual decision to rescind its proposed $5 debit-card fee, apparently bowing to the consumer revolt that this fee provoked, plenty of customers may still move their accounts to credit unions and community banks on Bank Transfer Day this Saturday. Credit unions are launching efforts to promote themselves to prospective depositors; some are also expanding their banking hours.

There's skepticism that customers really will migrate from big banks to small banks en masse; a previous attempt to spur a revolt, promoted by the Huffington Post, didn't have much impact. And even if hundred of thousands of customers make the move, that's unlikely to significantly damage large banks, like BofA, Wells Fargo, and Chase, which have billions in deposits. There would need to be a Bank Transfer Day...pretty much every day to make a difference.

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