While a new Javelin Strategy & Research report indicated that 11% of consumers were likely to switch primary financial institutions in 2012 (large banks facing the greatest defections), "Bank Transfer Day was a bust…" says Mark Schwanhausser, senior analyst, Multichannel Financial Services at Javelin.
The Javelin FI Vulnerability Index estimates huge potential losses for financial institutions because switchers manage $675 billion in deposits, and manage deposits that are 30% higher than customers who are unlikely to switch. Likely switchers are willing to pay an estimated $92 million in fees for value-added services including: money orders, cashier's checks, safe-deposit box rentals and mobile deposit.
This report just goes to show that any kind of market shift doesn’t just happen purely on customer satisfaction. Just like any business, if you want to gain customers, you have to find them and “market like crazy” to them! How can banks do it better? Find the niches of customers names and addresses, append complementing data, expand on the list geographically and hit them hard with incentives! The time and effort to change banks is not going to happen unless you make it worth their while, which can include initial sign-up incentives and interest rates for a certain period of time.
There are ways to get these customers over to your financial institution, don’t think they’ll just come walking in on the next Bank Transfer Day!
ABA Banking Journal: http://www.ababj.com/tech-topics-plus/675-billion-in-deposits-at-risk-due-to-bank-switching-3109.html
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