Mobile Banking Users Leave Due to Fees, Service
A survey of almost 5,000 mobile banking users found those who moved accounts from one bank to another in the last year did so because of higher fees or poor service.
SNL Financial, the Charlottesville, Virginia, financial service data and consultancy firm surveyed the nearly 5,000 mobile banking users in February 2015 and found that 10% of them reported having moved their accounts from one financial service firm to another in the past year.
When asked why they had done so, 34% of the account-switching consumers cited high fees at the previous institution as the reason and 28% cited poor customer service. Having moved (27%), a better mobile experience (26%) and incentive offers to switch (25%) rounded out the top five reasons to change.
When income was included as a factor in the data, SNL found 13% of those making more than $75,000 per year switched their financial institution while only 10% of those making less than $75,000 did so. The survey also found 35% of account changers were under age 35 with 19% of them between the ages of 18 and 25.
The survey did not reveal how many respondents reported leaving or joining a credit union, however about 5% of respondents used a write-in box to share reasons, which the rest of the survey did not cover, and credit unions were mentioned there.
One respondent wrote: “Decided to switch to a credit union to avoid making bankers rich," while another wrote, “Credit union updated system and constantly has issues where I can’t access my money.”
Other factors included: Bank closed, bank is moving, better hours, getting divorced, getting married and landlord banks at Wells Fargo.