Academic journal article ABA Banking Journal

Retail Banking Customers Get Savvier

Academic journal article ABA Banking Journal

Retail Banking Customers Get Savvier

Article excerpt

Across the globe, bank retail customers are asserting themselves.

Ernst & Young's 2012 Global Consumer Banking Survey analyzes views of more than 28,500 bank customers from 35 countries. It details how likely customers are to switch banks and their reasons for doing so as well as ways customer behavior is changing.

According to the survey, the percentage of customers who are planning to switch banks rose to 12% from 7% in 2011. The most cited reason: dissatisfaction with high fees (50%), followed by poor branch experience (31%) and poor interest rates (30%).

Also, the survey notes that 34% of customers worldwide said they switched banks in 2011. In the United States and Canada, those who said they switched grew from 38% in 2011 to 45% in 2012.

While raising fees can drive customers away, the survey finds that customers also want their banks to provide better communication and be more transparent when it comes to fees.

Interestingly, as retail bank customers seem more willing to switch banks, they also are becoming more likely to increase the number of relationships they have with banks. …

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