Why people don’t switch banks anymore

According to JD Power’s 2019 U.S. Retail Banking Satisfaction Study, just 4% of consumers switched primary banks in 2018. This was the lowest level of switching ever recorded by the research firm, down from a 2016 high of 8%. According to American Banker:

Customers are staying put because banks, particularly large ones, have made banking so convenient that account holders are shrugging off any concerns they may have.”

I disagree.

Deposit Displacement is Diminishing the Importance of Checking Account

Checking accounts have become “paycheck motels”–temporary places for people’s money to stay before it moves on to bigger and better places. The cause of this is deposit displacement: the displacement, or diversion, of funds from traditional accounts (i.e., checking) to alternative accounts.

 

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