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CG42 Managing Partner Stephen Beck on the rising number of consumers considering switching banks because of frustration with rising fees and lack of c...
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Well you've heard me talk about a before -- growing number of Americans to stop at their banks.
And that is according to a real study a new study by industry consultancy -- 42.
If things don't get better soon customers are gonna pull their money out and banks are gonna feel like joining us now Stephen Beck.
Managing partner -- CG 42 thanks for coming in -- them -- TARP.
People are very take.
We did that the survey covers the key clients of -- top ten institutions views of how these institutions are serving them today.
And we -- about eighteen frustrations ranging from.
Nickel and dining and in overcharging on fees to lagging having these lightning data technology all the way to making promises that that these institutions are not keeping.
And really the interesting things that come out of this is that.
More people than ever in history are actually in the process of shopping right now.
Well let's let's go to that banks under fire 20%.
Of customers according -- study.
20% customers of the big banks are considering and switch that is a huge number of people.
They could lose as much as a 185.
Billion dollars -- right in assets and that's not chump change now.
It's it's really not -- the -- -- 820% -- -- -- -- telling -- right now.
There are literally actively in the process of of looking at alternatives and that that equates to about 399 billion of deposits.
Our -- most vulnerable Bank of America.
-- On all eighteen frustrations they.
Over index vs the other banks in the category specific say they over and exit means they think people are more than anyone else yeah they're much more vulnerable.
They are really the poster children for of the -- problems.
Whether that -- nickel and dime me overcharging.
Or even hitting people -- overdraft charges when you know they're not relevant but but interestingly enough.
There's also the issue is I'll just basic services and and really not delivering.
Are on on promises that they've made.
We talked a lot about Bank of America is set trying to institute that sixty dollar a year debit card fee.
They had to back away from -- you say that's not the only issue out there for banks Wells Fargo for example has its own problems explain that.
What one of -- key strengths of Wells Fargo in as an institution has been their ability to cross sell off sell their clients on incremental -- One of the things that this study revealed is that they may have gone too far.
And that one of the key frustrations that they expect their cut clients experience is trying to be solar products and services that they don't want.
The their clients viewed as unique to Wells Fargo and their clients viewed as one of the key reasons for looking at alternatives and potentially -- -- -- -- your top three banks in terms of not doing great job for consumers include Citibank let's show those top three banks at risk in the deposits at risk.
What's -- with Citibank where people -- frustrated there.
You know an interesting thing about Citibank is their performance on the basics.
It's really about core services it's about things like having to deal with -- bank processing things like having to deal -- We have an inconsistency.
Amongst the branch experiences that I interact with on on a daily or weekly basis it's it's the basics.
Aren't what one of the interesting stats from your survey and believe me I -- to every page of it he says -- percent of customers -- banks only care about their own interest well look.
Here's what people my friends here at Fox Business Network would say they would say -- there in business for a reason not just to make you happy but also to make money right.
Get an index.
There's an element of truth to that but on the -- candidature in my opinion a business model that's based -- That's based on hidden fees that's based on penalty based fees and over the long term is not sustainable.
And I think what these institutions have done many of them.
Bomb have lost their way and they forgotten that one of the key words in financial services -- service and delivering on that part of it is important to.
Let me let me ask about penalty fees you say they're something you do other than institute penalties when I do something wrong when -- over -- my account when I use my debit card no way they don't like.
How could they get money -- some whales.
-- there's I think a myriad of ways to think one of the key one is looking at what are the goals that their clients are seeking new -- And helping them they have a wealth of information around how people are looking at financial planning helping them understand how they can actually achieve their goals helping them -- helping them educate -- I called my bank and say I'm having trouble with my borrowing K and I can't figure out which one of these mutual funds to invest in in my company's plan.
If they did that I was doing for that.
Exactly and you know I think one of the things that we hope this study found brings forth is that.
Looking at these frustrations the seeds of innovation are in there if these institutions wanna look at it through the lens of how -- we address our clients' needs.
Aren't well Stephen great job on the study really fascinating look I'm -- the banks aren't too happy but I guess that's not why you get it.
Thanks for coming in -- really appreciate your.
