Although the charge was sounded to move from a bank to a credit union last fall, only a collective 214,000 consumers took the step to move their money surrounding Bank Transfer Day. Why? Many experts say that in order to actually do the legwork, you have to be extremely, red hot mad at your bank.

Anne Hagen, Marketing Manager at Community 1st Credit Union ($365 million, Ottumwa, Iowa) says, “It’s overwhelming process…the typical and one of the most common reasons a potential member won’t switch.  It’s a hassle and takes a lot of time.”

Hagen explains that just the thought that the potential member would have to, “Contact their financial institutions, convert checking accounts, bill payees, direct deposits and switch everything to our credit union is not realistic.” 

Plus many people get really angry with their bank, walk away and let time pass.  After cooling their jets they move onto the next issue in their day and forget that they wanted to leave their bank. 

Carole Tanzillo, CIO at MPO Federal Credit Union ($25 million, Middletown, New York) says that the urge to switch begins with the best of intentions but may wane after time. “Sometimes folks want to switch financial institutions but find that they don't know what it might entail or that they are afraid that they will forget something along the way.”

Knowing what they are up against, many credit unions have created a package of transfer paperwork, forms and instructions directing the member on how they can make a switch. The idea is to reduce anxiety about moving their money and shave a considerable amount of time off the process.

“By providing documents that guide folks thru the process - their fears are eased,” Tanzillo says. With regard to her credit union’s switch kit, “I wouldn't say that people print out the guide - but I do think it is used as reference point.”

Hagen says that a reliable, easy-to-use switch kit can make a world of difference. “Whatever we can do to ease the process, we’ll do!”

CUNA Marketing and Business Council recently wrote an article about how it takes approximately 20 minutes to become a credit union member or open an account--and only nine minutes to close a bank account, according to a Portland blogger who wrote about how she closed her Bank of America account.

CUNA’s article discusses how a switch kit significantly reduces any headache and most importantly anxiety associated with transferring to a credit union. “Because as much as a switch kit might actually simplify the transfer process, the greatest benefit is the kit's ability to mitigate consumer anxiety about sealing the deal with their new primary financial institution. It helps to eliminate the common misconception that leaving a bank and joining a credit union is difficult.”

What Makes Switch Kits So Easy to Use?

Both Tanzillo and Hagen say that a concise check list is key to a useful switch kit. “The most important tool in the switch kit is the check list,” Hagen says. “It’s a beneficial, easy to use and read list.  It gives the member a ‘cheat sheet’!”

Tanzillo says, “I'm a fan of the check list to get it all together. Then the direct deposit change form in conjunction with automatic payment form.”

Although both credit unions offer switch kits online, member service is also an important component of making a seamless transition.

“Personal service is always the best,” Tanzillo says. “Anyone with questions should feel comfortable contacting us to assist them in anyway possible.”

“The employees at Community 1st do all they can do to assist any new members to make it a smooth transition from their previous financial institution,” Hagen explains.  “We try to go above and beyond for every new member experience.   We want their first impression of our credit union to be a great one!  We also offer an online membership application.  This trims down the time we spend asking the new member questions.”

Do Switch Kits Work?

Colleen Boccia, SVP Marketing and Chief Deposit Officer at Columbia Credit Union ($816 million, Vancouver, Washington) says that during Bank Transfer Day new members flocked to the credit union’s switch kit to make the change.

“We did see an over 400% increase in visits to our online switch kit during the month of November,” she recalls.  Additionally in anticipation of Bank Transfer Day Columbia Credit Union beefed up opportunities to use the switch kit.  “We did increase the links to the kit on our website from articles and teasers on our website relating to Bank Transfer Day.”

Boccia adds that it’s all about convenience and what her team can do to make the process easy for the member. “It's all about what is convenient for the member, and what their preferred communication channel is.”

Hagen said that online channels have helped boost conveniences at her credit union significantly. “Members using any online tools, online banking, mobile banking, live chat, communication via email and online applications submitted increased plenty in 2011.”