Credit Unions May Capitalize From Facebook Post

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Credit unions say they have seen a surge this month in inquiries from prospective members looking to leave big banks. And one local art gallery owner might be helping drive that interest.

Kristen Christian, the 27-year-old owner of Le Spec Gallery in Los Angeles, has become an unexpected leader of a nationwide antibank movement after a Facebook post earlier this month encouraging friends to leave large financial institutions for credit unions.

Fed up with what she called “outrageous fees for inadequate services” from big banks, Christian used the social networking site to call on friends to make the switch by Nov. 5, which she dubbed “Bank Transfer Day.” Primarily through word of mouth, the movement’s Facebook page had 25,000 supporters after just a week.

“I’m definitely surprised and humbled by the amount of support the movement has received,” Christian said in a telephone interview last week. She anticipates well over 100,000 supporters.

Christian noted that the effort is not affiliated with any credit unions or the Occupy Wall Street protests, though members of both groups have expressed support.

She’s following in the footsteps of Arianna Huffington, head of the Huffington Post website, who launched a “Move Your Money” campaign in 2009 in protest of the bank bailouts.

Henry Kertman, a spokesman for the California Credit Union League, said the trade group is aware of Christian’s Bank Transfer Day and hasn’t taken an official position but “we support the concept.”

“Credit unions certainly welcome those who are participating in that effort,” Kertman said.

He said the league, which represents 345 regional credit unions, has seen anecdotal evidence in recent weeks of a rise in inquiries from bank customers looking to switch. Actual membership numbers will not be available until the institutions release their call reports at the end of the quarter.

Kertman said efforts such as Bank Transfer Day, as well as recent moves by some big banks to attach new fees to debit cards, have been helpful for credit unions in recruiting members. He noted that websites such as FindaCreditUnion.com, to which Christian’s Facebook post links, have seen a rise in traffic.

Christian, who has maintained both her personal and business accounts with Bank of America Corp. for years, said she is shopping around for a credit union.

Though her effort has garnered nationwide support, she said there have been a handful of detractors.

“I’ve definitely gotten some very nasty e-mails,” she said.

Fee Free

Smaller community and regional banks are also looking to benefit from customers’ frustration with big-bank fees.

City National Bank, a regional institution owned by downtown L.A.’s City National Corp., took the unusual step last week of publicly announcing that its debit cards, which did not previously have monthly fees attached, will continue to be fee free.

The bank noted that new financial regulations have put additional financial burdens on banks, but it plans to absorb the costs.

City National’s announcement comes as the Independent Community Bankers of America, a trade group for small banks nationwide, promotes a “go local” effort to encourage big-bank customers to switch to community institutions.

Spreading Out

Green Dot Corp., already the market leader among prepaid debit card providers, just keeps growing.

The Monrovia company announced last week that it will sell its products in 10,000 additional retail locations through a new partnership with Blackhawk Network Inc., a Pleasanton-based prepaid card subsidiary of grocery store chain Safeway Inc.

Green Dot’s cards, which work like regular debit cards but are not attached to bank accounts, are available at 55,000 retail locations, including Wal-Mart and 7-Eleven stores. The cards will be rolled out to Blackhawk’s retail partner locations over the next two years.

C-Suite News

Hanmi Financial Corp., the Koreatown holding company for Hanmi Bank, announced that Lonny Robinson was hired as chief financial officer, replacing Brian Cho, who has retired. Robinson will serve in an interim capacity until the bank receives regulatory approval. … Manufacturers Bank announced that Naresh Sheth was elected president, chief operating officer and a director of the L.A. bank this month. … First California Financial Group Inc., the Westlake Village parent of First California Bank, announced that John Harris was hired as senior vice president and regional manager of the South Bay market, and Michael Kee was appointed senior vice president and regional manager in San Luis Obispo.

Staff reporter Richard Clough can be reached at [email protected] or at (323) 549-5225, ext. 251.

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