Go to:

July 2018
< Jun Aug >
Leaguer Email Subscription

You are not currently subscribed. Click Subscribe below to receive the Leaguer email.

Advantage CUs: Big Banks’ Brand Vulnerability
Wednesday, December 16, 2015 6:40 AM

The newly released 2015 Brand Vulnerability Study offers credit unions an opportunity to differentiate themselves to consumers through the vulnerability of their for-profit competitors. The study found that 23 percent of current bank customers are looking to switch financial institutions.

The study identified top frustrations among at-risk customers and customers who recently switched, including: banks failing to keep promises; nickel and diming customers; limited or inconvenient branch locations; lack of competitive rates; mistakes on statements; fees; and poor customer service.

Customers remain skeptical of their banks overall. Consumer attitudes towards financial institutions have remained stable since 2011 with more than half of respondents feeling that:

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

“It’s too much of a hassle to switch banks.”

“It makes me uncomfortable to think about how large some banks have become.”

Based on the results of the 2015 Brand 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.

In 2015, the top 10 retail banks combined have 23 percent of their customer base considered at-risk, or customers who considered switching their primary banking relationship to another institution in the past 12 months.

The most vulnerable banking giant? Bank of America, followed by Chase, Citibank, and Wells Fargo.