Tuesday, March 30, 2010

Why People Leave Their Bank

According to seventh annual household banking survey of 5,000 households conducted by Javelin Strategy and Research, it appears that fees and customer service continue to be the primary reasons a person leaves their bank (in addition to moving). What may be surprising to some, however, is that many millennial (ages 18-24) leave their bank due to the lack of ATMs while there is a growing percentage of households moving to a new bank to get mobile banking services. In fact, according to the study, 'ATM availability' edged out 'online features' as a factor that can predict customer attrition.

According to the study, there is one factor that does not predict whether a customer will leave a bank . . . errors by the financial institution did not move the needle as a reason why a customer attrites. This may be because banks have gotten much better over the years on not making as many errors in the first place and quickly addressing errors made as part of their focus on the customer experience.

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