Biggest Threats to Banking in 2019: Fees, Lousy Tech and Digital Disruption

Biggest Threats to Banking in 2019: Fees, Lousy Tech and Digital Disruption

Article from: The Financial Brand

Charge consumers for overdrafts and they get mad. Give them a poor digital experience and they may leave. Four separate studies highlight how consumers now feel more empowered than they ever have before, with new options for financial services that extend well beyond traditional banks and credit unions. Anything from bad service and fees to lousy tech or ethical issues can spark the switch.

Consumers’ frustrations with their primary financial institutions range from simple grumbles and mild distrust to outright rage. But how annoyed does a consumer have to be before they’ll leave? And what are the trigger points?

In its Retail Banking Vulnerability Study, consulting firm cg42 suggests that major retail banking brands face greater risks than ever that consumers will leave them. The firm estimates, based on an analysis of a large consumer survey, that 11% of major bank consumers could walk.

People’s top five frustrations with their banking providers include:

  1. Acting in dishonest, unethical or illegal ways
  2. Constantly slapping them with nickel and dime fees
  3. Failing to offer competitive rates and pricing
  4. Data breaches or exposing personal/account data
  5. Hitting them with overdraft charges

Although more than half of those consumers would simply switch to another large retail bank, almost as many say they would consider other choices. Nearly one in ten would be willing to go with an online bank with no branches.

  

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