Deposits Continue to Flood Community Banks

PRLog (Press Release) - Mar 16, 2009 -
Austin, TX— Witnessing a 134% increase year over year in deposits in its REWARDChecking® accounts at over 500 participating community banks across the country, BancVue, a leading provider of products and consulting to community financial  institutions, demonstrates consumers’ flight to safety and retreat from the big banks.  In fact, BancVue’s REWARDChecking, which is only available at community financial institutions, saw a stunning increase of $774 million in deposits in February alone, with accounts opening every 47 seconds in the U.S.

“Consumers are definitely waking up. And they’re realizing that the TARP-ridden megabanks may not be the most beneficial banking relationship for them over the long term,” said Gabe Krajicek, Chief Executive Officer of BancVue. “In fact, in a qualitative study we conducted late last year, over 80% of big-bank customers indicated they would prefer to bank at a community financial institution with innovative products.”  

Community banks, which have watched their market share decline from 70% of deposits in 1994 to 30% in 2008, are battling with innovative products like REWARDChecking, a free high-yield checking account with no minimum balance and nationwide ATM fee refunds when cost-saving technology qualifications are met. Consumers have been attracted to yields as high as 6.01% at banks such as Florida Central Credit Union in Tampa and First Robinson Saving Bank in Illinois, as well as those in the 5% range, including Connexus Credit Union in Wisconsin, Community Bank of Pleasant Hill in Missouri, and Union State Bank in Kansas, and the hundreds more showing up on sites like www.checkingfinder.com.

“Consumers are re-evaluating their banking relationships,” said Jeff Hammes, President of Peoples Bank of Kankakee County (Illinois). “And its community banks like ours that are going to benefit. Not only can we offer high yields, fiscal safety, and excellent customer service, but let’s face it, we know our customers a heck of lot better than big banks.”

For more information on community banks and credit unions that offer high interest checking accounts, visit www.checkingfinder.com.

About BancVue
BancVue is the leading provider of innovative software, marketing, and consulting solutions to community financial institutions nationwide. Serving nearly 500 community banks and credit unions around the country, BancVue’s solutions allow these institutions to compete and win in the war for deposits. Consumers benefit from the development and implementation of BancVue’s innovative products, including REWARDChecking®, a free high-yield checking account specifically designed for community banks and credit unions. For more information on BancVue, visit www.bancvue.com.