– Are big banks really changing their ways? (CNN Money, Nov. 21, 2011):
NEW YORK — Customer defections over fees and other charges may not drive the nation’s biggest banks out of business, but some institutions could stand to lose a significant chunk of their deposits if they don’t work harder to make customers happy.
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The nation’s 10 biggest banks could stand to lose as much as $185 billion in deposits in the next year due to customer defections, according to cg42, a Wilton, Conn.-based management consulting firm that has conducted research for several of the nation’s top banks. The top 10 banks hold a total of $2.04 trillion retail deposits (deposits made by consumers and small businesses), according to data from cg42, which is based on each bank’s annual report.
The firm, which surveyed nearly 6,000 bank customers between June 23 and July 25 (well before the Bank of America debit card fee brouhaha), said the main reasons customers would close their account and take their money elsewhere included frustration with customer service, fees and other unfair charges.
Out of all the big banks, Bank of America is the most vulnerable and could lose up to 10% of its customers and $42 billion in consumer deposits in the next year, the survey found. The bank’s total retail deposits stand at $407 billion (while total deposits, including corporate deposits and deposits from other financial institutions, amount to nearly $1 trillion, according to FDIC data).
A spokeswoman for the bank declined to comment on the findings of cg42’s report.
Yes, I am in the process of transfering funds, direct deposits, etc to a local credit union. The transfer takes about a month. As of two weeks ago, before the Move Your Money day, these are the numbers. In all of 2010, credit unions picked up 600,000 new accounts. Before the big date of Nov 5th, 650,000 had already moved into credit unions. I don’t yet know what the tally from the transfer…..a lot of people are moving. I started the process before Nov 5th and urge everyone to do the same.