What Drives the Decision to Switch Banks?

by. Karen Licker

A decision to switch banks is often driven by a mix of frustration with the previous bank and attractive offerings from the new bank.

Attracting new business within the retail banking industry is unique. While there are several variables that can “pull” customers toward a new bank, data from our J.D. Power and Associates 2013 Retail Banking Satisfaction StudySM has found that customers generally will not switch banks unless they are also “pushed” away from their prior relationship.

While poor service and high fees are most likely to push customers away, branch convenience, promotions and recommendations help to attract customers to a new bank.

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