Bailed Out Megabanks Still Not ‘Too Big To Fail’ Consumers

by Erik Keith for News to Use    October 02, 2009

As the U.S. Government’s Troubled Asset Relief Program—TARP—-marks its one-year anniversary this Saturday, BancVue the leading provider of innovative products, dynamic marketing, and data-driven consulting solutions to community banks and credit unions across the country, announced today it is witnessing community financial institutions gaining significant traction in attracting dissatisfied megabank customers looking to leave the beleaguered institutions and increased fees behind. 

Created in response to the Great Recession of 2008, TARP was intended to allow banks, particularly those considered “too big to fail”, to stabilize their wobbly balance sheets. Instead, the megabanks who have received much of the funds have bitten the hand of the taxpayers that have fed TARP by imposing hefty fees on their checking accounts. According to the Federal Reserve Bank of Dallas, the top four megabanks raised fees related to deposits by an average of 8 percent while smaller banks lowered their fees by an average of 12 percent.

“Consumers need to know that they don’t have to settle for an unhealthy banking relationship,” says Gabe Krajicek, CEO of BancVue. “Community financial institutions give consumers everything they want—great products, great service and the respect they don’t get at the ‘too big to fail’ megabanks.”

Consumers are starting to take action. From June 2008 to June 2009 community financial institutions saw deposits swell. Deposits at credit unions and community banks increased 8.67% and 5.52%, respectively, according to NCUA and FDIC data.

Capitalizing on this shift in sentiment, community financial institutions are getting more aggressive in reaching out to consumers through websites, such as www.CheckingFinder.com, where they promote consumer-centric products like high interest, free checking accounts with no minimum balance, no monthly fees and nationwide ATM fee refunds. To facilitate switching from the no interest, big fee and high minimum balance accounts of the megabanks, the site features a “Switch Kit” to make it effortless for taxpayers to stop paying and start earning the interest they deserve.   

“Checking accounts are the most fundamental and perhaps important personal financial tool consumers have, and it’s time they bank at a financial institution that puts the interests of the customer first,” continued Krajicek.  “After all, megabanks are still not ‘too big to fail’ consumers.”

This work is licensed under a Creative Commons Attribution 3.0 License.

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