NEW YORK (MainStreet) — If you’re one of the countless consumers who’s dissatisfied with their bank, knowing what other consumers value in their financial institutions might help you when shopping for a new institution yourself.
Banks would do well to take a long, hard look at a new survey that listed these factors, as bank deposit assets are measured in trillions these days, and from 2000 through 2008, grew from around $44 trillion to $7 trillion, an average of $30,000 per U.S. household.
The report also notes that more customers are looking to switch financial institutions, as 8.7% of survey participants say they switched banks in the past year, up 1% from the previous year.
These customers aren’t just switching to switch, either—they’re tough and highly selective.
"These customers appear to be more discriminating and diligent when selecting a new bank,” says Rockwell Clancy, vice president of financial services practice at J.D. Power and Associates, which sponsored and ran the study. Clancy says most people change banks due to changes in their lives, but many people shed old banks because of fees, rates, unmet expectations and lousy customer service.
When consumers choose new banks, what’s at the top of the list, criteria-wise? J.D Power found that it boils down to advertising, branch convenience, products and services, promotional offers, and direct and indirect customer experience (including past personal interactions, recommendations and bank reputation).
Advertising is somewhat surprising to see on this list, and is likely disappointing to smaller banks, which have low ad budgets, especially for television. Big banks have a clear advantage here, especially in large urban and suburban markets, and as J.D. Power says, “banks that perform well in acquiring new customers—Chase, PNC Bank and SunTrust Bank, in particular—tend to be aggressive in their advertising and promotions.”