Despite the euphoria, a top researcher for J.D. Power & Associates warned credit unions last week against “popping the champagne corks too early” in expecting sustainable gains from Bank Transfer Day. That’s because their data continue to show real consumer intransigence about moving accounts.
“It’s really too soon to know whether the spin translates into sizable shifts into credit unions,” declared Michael Beird, director of the banking services practice for J.D. Power.
Beird said the firm’s most recent surveys show 28% of consumers move accounts because of life-changing events like moving and marital status. But 17% switch because of frustration or anger over price changes and on that “we don’t have the data yet, but that percentage could certainly increase” benefitting CUs.
Consumer inaction in moving accounts continues to be a key factor in holding down big CU gains since “in the old days it used to be mortgages that kept account changes, but now it is technology, online bill pay, mobile applications and the rest” that has contributed to intransigence.
The J.D. Power researcher also disclosed that the firm expects to once again include CUs in its upcoming banking trends surveys. The Power stats, he said, currently rely on some 135 large banks with $2 billion in assets for analysis, and in the past, the sampling of CUs proved unworkable, but “we now believe we can capture the data.”
Power research shows that customers like what big banks offer, including a full range of financial products, broad ATM networks and numerous branches around metro areas, he said. Convenience and branch density remains key factors in customers looking to move accounts, he said. It is also true that fees don’t motivate everyone, observed Beird.