Academic journal article ABA Banking Journal

Fees Top the Reasons for Not Using a Bank

Academic journal article ABA Banking Journal

Fees Top the Reasons for Not Using a Bank

Article excerpt

Giving particular significance to the reasons why non-bank customers don't use banks is the fact that about three quarters of them have had checking or savings accounts with a bank at some point. And slightly more than half of this sample of 200 people have gotten a loan from a bank.

Thus, when the nonbank users were asked to rank four reasons why they are not currently using a bank, their responses were based at least in part on experience.

Fees by far are the biggest factor for this group. As the chart shows, almost six out of ten nonbank users report that fees are a major reason for not using a bank. Younger respondents are more likely to say this than the average, as are those with higher education levels, and those with higher incomes.

Also, about one in six nonbank users say they don't use a bank because they cannot meet the minimum balance requirements. Slightly less say a major reason is lack of courteous or helpful service. A lack of convenience does not appear to be a significant factor.

RELATED ARTICLE: Reasons for Not Using a Bank

Given Four Common Reasons for Not Using a Bank, Nonbank Users Were Asked to Rank Them in Importance

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