Bank Watch

Report: BofA most vulnerable to losing customers compared with other big banks

For the second year, Bank of America has ranked as most vulnerable to losing frustrated customers, according to a study by management consultancy cg42, which has issued three reports on the subject.
For the second year, Bank of America has ranked as most vulnerable to losing frustrated customers, according to a study by management consultancy cg42, which has issued three reports on the subject. jkomer@charlotteobserver.com

Among the nation's largest banks, Charlotte-based Bank of America is the most vulnerable to losing frustrated customers, a new study shows.

It's the second year Bank of America has ranked as most vulnerable on the study by management consultancy cg42, which has issued three reports on the subject.

Bank of America also ranked as most vulnerable in 2011, the first year of the report. The second report, in 2013, ranked Bank of America as third-most-vulnerable bank.

Here is this year's complete list:

1. Bank of America

2. Chase

3. Citibank

4. Wells Fargo

5. SunTrust

6. BB&T

7. TD Bank

8. PNC

9. Capital One

10. US Bank

Bank of America spokesman Don Vecchiarello said Wednesday that the bank takes its clients’ feedback very seriously.

“We are confident in our relationship strategy and the investments we are making to improve our clients’ experience with us,” he said.

According to the latest report, 23 percent of customers for the 10 banks are looking to switch banks in the next 12 months – and 8 percent are projected to actually do so.

At Bank of America, 29 percent of customers are at risk of changing banks, the report says. It projects that 10.3 percent of Bank of America's customers will move $57 billion in deposits to another institution in the next year.

The 10 banks are projected to see a combined loss of $86 billion in deposits and $4 billion in revenue over the same period.

The report, which is based on surveys from more than 3,000 current customers, also identifies the top frustrations among those who have recently switched banks or are at risk of leaving.

Frustrations include banks failing to keep promises, customers being “nickeled and dimmed” and branch locations that are limited or inconvenient. Other frustrations include fees, lack of competitive rates, mistakes on statements and poor customer service.

“Despite the improvement in vulnerability levels from 2011 to today, a majority of customers continue to believe that banks don’t act in the best interests of their customers,” Stephen Beck, founder and managing partner of cg42, said in a statement.

Deon Roberts: 704-358-5248, @DeonERoberts

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