Data shows that Americans are generally happy with their banks. But show them a better deal, or worse, tick them off, and many flee for the door.
Primarily, though, a bank switch is triggered by financial reasons. According to a study from Kasasa.com, "nearly one in two Americans would switch banks for higher interest rates." And two in five customers would switch banks for "lower fees."
Not surprisingly, a new study from Dubai-based Mercator shows that U.S. consumers want their financial institution to offer them better rates, better rewards, and lower fees. If they don't get those deals, then many bank customers will find a bank that will provide them.
More bank customers switch banks than you might think. According to Mercator's newly-released "Omnichannel and Branch Banking: Remember and Reward Your Customers," 15% of U.S. adults regularly "switch primary financial institutions," and 25% of young adults and high-income earners "do so," as well.
"Better rewards or offers (28%) and better rates for savings accounts or checking and deposit accounts (26%) are the top reasons for this switch.," the report notes. Moving out of the area, lower fees "and more convenient bank branches" are also top reasons for switching banks.
That's the case with Anna Dunn Tabke, director of research at Atlanta-based Alpha Capital Management.
"My family is right in the middle of switching banks," Tabke says. "As consumers, two reasons drove us to investigate options after nearly 10 years with Bank of America."
She cites better rate on savings accounts as the first reason. "Our existing rewards money market savings account offers 0.03% APY," Tabke notes. Then there's the issue of poor customer service. "I had a string of recent issues with customer service representatives both via telephone and via Twitter which were not handled to my satisfaction," she adds.