BofA Fallout Brings 20% Account Spike, Arizona CU Finds
Credit unions were expected to benefit from Bank of America’s new $5 monthly debit fee but one Phoenix executive said he is still taken aback at the 20% increase in new member accounts his credit union has seen.
“I’d say our online account activity has seen as many applications over the weekend as it usually processes in a week,” said Paul B. Stull, senior vice president-strategy/brand at the $1.2 billion Arizona State CU. One branch also saw a 50% spike, he said.
During the big bank bailout of 2008-09, “a lot of people grumbled and we had the Huffington Post ‘move your money’ campaign and no changes seen but this time it’s different,” observed Stull.
Members moving their accounts now mention both BofA and Wells Fargo which instituted a smaller $3 fee, the Arizona State SVP said.
Fifty percent of the new account activity at the 121,000-member credit union’s Prescott Valley Branch in northern Arizona was “related to BofA, with new members mentioning them,” Stull said.