Survey: Large Banks May Lose Hundreds of Billions
Bank of America is in danger of losing 10.3% of its retail customers over the next 12 months, according to a new survey.
The survey also showed that the country’s 10 largest retail banks may lose $185 billion in deposits over the next 12 months, its author said.
The Connecticut-based consulting firm, cg42, released the study earlier this week based on a survey of 5,600 big bank customers. Half the respondents said they were dissatisfied with their bank, 71% said their banks do not have the customers’ best interest in heart, and 70% said they want to spread their relationships out among several banks.
Steve Beck, the founder and managing partner of cg42, said he expects the large banks to begin losing market share because consumers’ frustration with their banks is at an all-time high. He cited banks fees, lack of competitive deposit rates and overdraft policies as the top complaints.
cg42’s survey was conducted in June. While BofA was named most vulnerable to a consumer exodus, Citibank, Wells Fargo, Capital One and JPMorgan Chase were also named as in danger of seeing significant retail deposit outflows.
The Charlotte, N.C.-based bank told Credit Union Times earlier this week that its deposit figures would not be available until its next regular financial report.
CUNA had said that more than 650,000 consumers opened new accounts at credit unions in the weeks leading up to Bank Transfer Day and that 40,000 more did Saturday, accounting for $80 million in new savings deposits that day alone.