U.S. Retail Banking

COMPETITIVE VULNERABILITY

U.S. Retail Banking

2015 Retail Banking Competitive Vulnerability

In this fifth installation, the 2015 Retail Banking Competitive Vulnerability Study examines the frustrations and attrition rate among the Top 10 Retail Banks in the US based on a survey of 3,314 real customers.

Competitive Vulnerability directly measures the frustrations of real customers and the impact those frustrations have on customer attrition.

The Skinny


Compares the Top 10 Retail Banks in the U.S. based on a survey of 3,314 real customers.

Methodology

The 2015 Retail Banking Competitive Vulnerability Study compares the Top 10 Retail Banks in the US based on a survey of 3,314 real, primary customers. The study measures the frustrations of existing primary customers of the Top 10 US Retail Banks, and quantifies their potential impact in financial terms.

Banks Analyzed

Overview of Key Findings

Based on the results of the 2015 Competitive Vulnerability Study, the top 10 U.S. retail banks are projected to lose a combined $86 billion in deposits and $4 billion in revenues over the next 12 months if existing customer frustrations are not addressed. Of the top 10 U.S. retail banks, the Big Four (Bank Of America, Chase, Citibank, and Wells Fargo) have the most deposits and revenues at risk over the next 12 months.

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The top 10 U.S. retail banks are projected to lose a combined $86 billion in deposits over the next 12 months.

Vulnerability Analysis

In 2015, the top 10 retail banks combined have 23% of their customer base considered at risk (i.e. considered switching their primary banking relationship to another institution in the past 12 months). This equates to $649B in deposits at risk and well over $30B in revenues at risk. If existing customer frustrations are not addressed, the top 10 retail banks are projected to lose in the next 12 months a combined 8% of their customer base. This equates to $229B in retail deposits and nearly $11B in retail revenues.

2015

8.0% Projected to Switch

$649 Billion

Deposits at Risk

$229 Billion

Deposits Projected to Switch

$30 Billion

Revenues at Risk

$11 Billion

Revenues Projected to Switch

2013

9.7% Projected to Switch

$627 Billion

Deposits at Risk

$230 Billion

Deposits Projected to Switch

$34 Billion

Revenues at Risk

$13 Billion

Revenues Projected to Switch

2011

8.7% Projected to Switch

$675 Billion

Deposits at Risk

$185 Billion

Deposits Projected to Switch

Most Vulnerable by Brand

Bank of America, Chase and Citi were at the highest risk for customer defection and financial loss in the short term.

At the opposite end of the spectrum, US Bank, Capital One and PNC are the least vulnerable of the top 10 U.S. retail banks and stand to lose the fewest customers (as a percentage of their current customer base).

A copy of the full report is available for purchase, the full report explores the reasons why each bank is vulnerable, the frustrations their customers experience, and the challenges they face because of the customer experiences they currently provide.

The full report is required reading for those trying to create change in a category defined by high level of customer frustration. Learn what the better banks do well and where the most vulnerable banks are failing to meet their customers’ expectations.

For more detailed information, request a copy of the full report.

“Banks claim they have my interests at heart but all they really care about are their own interests.”

– Respondent

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