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New Javelin Survey Reveals Sizable Migration to Smaller Institutions

January 30, 2012

A new Javelin survey conducted in December 2011 reveals a sizable consumer migration as a direct result from “too many bank fees”.

“Javelin’s research estimated that 5.6 million U.S. adults with a banking relationship changed banks in the past 90 days. Of those, 610,000 — or 11 percent — cited Bank Transfer Day as their reason for moving their accounts from a large to a small institution.  In addition to the 11 percent who specifically cited Bank Transfer Day as the reason for switching banks, 26 percent stated that they switched because their bank charged too many fees.”

As discussed in the FMSI white paper: The Impact of Federal Regulations on the Financial Services Industry, banks are taking a huge hit to their revenue stream from the Durbin Amendment.  Charging additional fees directly to the consumer was a concern opponents of the amendment had.  It appears consumers are reacting strongly to these fees.

This Javelin survey shows signs that community banks and credit unions are responding well in an effort to capture these disgruntled consumers.  Will we continue to see a significant migration in the financial services industry or will most consumers simply absorb these new fees?

Excerpts taken from Bryan Yurkan’s Bank System & Technology article Estimated 600,000 Consumers Switched Due to Bank Transfer Day

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