Retail Banking Vulnerability

STUDY

2018

Our 2018 Retail Banking Vulnerability Study builds on our 2011, 2013 and 2015 studies.

In each of the years we’ve conducted this study, we have predicted historic levels of customer defection and diagnosed the unique reasons that each of the major players would be experiencing increased attrition, in a category characterized by a high degree of inertia. Our findings have proven to be prophetic, unfortunately, as we had also hoped that the information could provide a platform for the major players to create real and lasting improvement in their customers’ experiences.

As you will see, the 2018 results show signs of increased risk for most of the top 10 retail banks,  with greater levels of customer frustration and higher number of deposits, revenues, and customers at risk.

The question remains – who will move beyond empty advertising messages and truly put the customer
at the center of the banking experience? Will it be one of the top 10 banks or a new category entrant,
like Amazon?

Study Focuses On:

  • How many retail customers are at risk of switching banks in the next 12 months?
  • Which retail banks are projected to lose the most deposits and the most revenue?
  • What are the key frustrations driving consumers to switch?
  • What alternatives are consumers considering outside the Top 10 retail banks?

Methodology

  • Online survey of 4,050 U.S. consumers
    • Fielded between May 25-June 19, 2018
    • The study is representative of the US market
    • Banks included in the study were: Bank of America, Citibank, Chase, Capital One, BB&T, SunTrust, U.S. Bank, Wells Fargo,
      TD Bank, and PNC
    • Also includes: Non Top 10 retail banks and non-traditional players such as banks that are online only, retailers, fintech and, technology companies

The Top 5 Frustrations Driving Switching:

  • My bank engaging in dishonest, unethical or illegal practices
  • Being nickeled and dimed with incidental charges
  • Not offering competitive rates and/or pricing
  • Having my personal or account information compromised/put at risk
  • Being hit with overdraft charges

The Stakes Have Never Been Higher:

If existing customer frustrations are not addressed, the Top 10 retail banks are projected to lose in the next 12 months:

 

Customers are exploring new alternatives:

Especially Millennials are open to new players:

 


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email: info@cg42.com

 

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