New Study Details Customer Unhappiness With Major Retail Banks

New Study Details Customer Unhappiness With Major Retail Banks A new study predicts that $399 billion in customer deposits in the nation's top 10 retail banks is in jeopardy and $185 billion of that amount is projected to exit in the next year, according to cg42, a Wilton, Conn.-based consulting firm that surveyed 5,600 bank customers.

The cg42 study detailed retail banking performance along a ‘Brand Vulnerability Index’ that measured the depth and scope of customer frustrations. According to the study, 71% of customers believed that banks were insincere about consumer interests, and 50% of customers were uncomfortable with how large some banks have become. Seventy percent of the customers polled by cg42 said they prefer to diversify their financial relationships across several providers.

The study pegged Bank of America as the retail banking giant with the highest brand vulnerability, with 10.3% of the bank's customers saying they expected to defect and move their deposits to another institution in the next year.

‘It's no surprise that customers are growing increasingly frustrated and feeling like many of these institutions are taking advantage of them – the data reflects that,’ says Stephen Beck, founder and managing partner of cg42. ‘But now – for the first time – we actually have a way to determine the effects of those frustrations on the balance sheet. It's critical for financial institutions to understand how their products, services and operating policies truly impact customer behavior.’

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