Personal Relationships Builds Profit

Mitchell at First PacTrust says that smaller banks profit from an ability to retain customers through personal relationships. "We monitor account activity and if a customer is unprofitable we do what we can to make it profitable. Banks that find they have unprofitable accounts have not done enough work to keep their customers happy. They have alienated them and are not able to cross sell to them. Most consumer and business accounts can be profitable if properly managed," says Mitchell.

Still, Mitchell acknowledges that big banks will likely not lose too much over Bank Transfer Day. "We are not deluding ourselves into thinking we are going to take massive share from Bank of America. But we will get a sufficient amount of share that will be enough to benefit our shareholders."

--Written by Shanthi Bharatwaj in New York

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Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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