A nationally representative survey of 1,155 consumers found a lack of consumer interest in banking with Bank of America, Chase, Citibank and Wells Fargo. One-half of consumers have a banking relationship with one of these banks. Raddon Financial Group, a strategic business unit of Open Solutions Inc., found that while 63% of current customers indicated they are either "extremely likely" or "very likely" to remain customers, the remaining 37% are less likely to continue banking with them. Twelve percent said they were "not very likely" or "not at all likely" to remain customers. When noncustomers were asked how likely they were to become a customer of one of these banks, none indicated they were "extremely likely" to do so, and less than 1% said they were "very likely" to become a customer. Eighty-eight percent said they were "not very likely" or "not at all likely" to become a customer. "Consumers are clearly reacting to the financial crisis, which appears to be seriously limiting [these banks'] ability to acquire new customers," said Bob O'Meara, vice president, director of research for RFG. When asked about the impact the banking industry crisis has had on their future choice of financial institution, 63% of respondents said they would consider a "local bank," and 43% cited a credit union as their preference. "In order for community banks and credit unions to attract customers from [big banks], they'll need to be strong in technology, convenience and service," O'Meara advised.

Unplugged ATM Leads To Arrest of N.Y. Man

A man from upstate New York was arraigned on June 12 before the state Supreme Court on charges he stole $75,539 from the Syracuse-based NPG Federal Credit Union (now called FocalPoint FCU) from March 2006 through July 2008. Jason J. Monto, 31, of Liverpool, N.Y., allegedly took advantage of a glitch that allowed him to repeatedly withdraw money from a local ATM machine during nonbusiness hours when it was not directly linked the credit union's records. He reportedly only had $5 in his account. Monto was indicted two weeks ago on felony charges of second-degree grand larceny and first-degree falsifying business records, according to Assistant District Attorney Beth Van Doren. "Obviously there are hopes of some restitution, but for such a large amount it is probably not a possibility, so we have to look at other options," Van Doren said. Monto's attorney did not return calls for comment nor did the credit union involved. Monto is scheduled to return to court on June 26.