Musings from the CU Suite

Written by Anthony Demangone, Powered by NAFCU

I'm guessing that you've seen the headlines.

For Bank of America's Poorest Customers, Banking Just Got More Expensive. (Quartz) Here's a snippet from the story.

Bank of America this month eliminated its once cutting-edge eBanking program, completing a process it began in 2013. The program, first introduced in 2010, was part of an initiative to bring in customers who were amenable to a digital-only banking experience. For those who wanted IRL customer service and paper statements, the program had a $8.95 monthly fee. But this was waived for customers who agreed to not use a teller and complete all routine transactions digitally.

The new policy, which guts the free eBanking program and moves its customers to a standard Bank of America checking account (with a $12 monthly fee), has sparked unhappiness from current and previous users.The new $12 fee is waived for customers with a daily balance of at least $1,500 or at least one direct deposit of $250 a month, but many of Bank of America’s poorest customers won’t meet those requirements. A petition on Change.org that protests the change in policy has more than 45,000 signatures as of this writing.

As I'm writing this, I realize that I might not have the right headline. "Oops, they did it again."  That isn't fair to banks. The job of a bank is to make a profit for its shareholders. So when something isn't profitable enough, they'll make the change. That isn't a bad thing. It is the way every for-profit organization is run. It just isn't great for customers. 

Today's headlines are just another example of how credit unions are the right choice for America's consumers. Here's a link to a video that NAFCU produced as part of our 50th Anniversary that talks about the credit union difference. Feel free to use it in light of today's headlines 

***

Be sure to sign up for NAFCU's Spring Regulatory Compliance School by this Friday to take advantage of the early bird rate.  The certification is the best in the business. Signing up by Friday will save you 200 clams.