Bigger the Bank, the More Consumers Fleeing: J.D. Power Study
Consumer backlash against bank fees, coupled with poor service and unmet customer expectations, has fueled increases in defection rates among customers of large, regional and midsize banks, according to the J.D. Power and Associates 2012 U.S. Bank Customer Switching and Acquisition Study.
On the heels of Bank Transfer Day, the beneficiaries of the growing move from larger banks are primarily smaller banks and credit unions, J.D. Power said.
Acquisition of new customers by smaller banks and credit unions has increased by 2.2 percentage points to an average of 10.3% in 2012 from 8.1% in 2011, the study found.
Among big banks, regional banks and midsize banks, switching rates average between 10.0% and 11.3%, while the defection rate for small banks and credit unions averages only 0.9%, a significant drop from 8.8% in 2011, the study found.
The study, which was released Monday and examines the bank shopping and selection process, found that 9.6% of customers in 2012 indicate they switched their primary banking institution during the past year to a new provider. This is up from 8.7% in 2011 and 7.7% in 2010.