Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Study pinpoints what prompts a switch in FIs Free checking
LOMBARD, Ill. (11/16/10)--Offering a free checking account is the top reason consumers say they would switch financial institutions, according to new research by Raddon Financial Group. Of consumers surveyed, 39% said they would switch if free checking changed. "Forget about deposit rates, loan rates, NSF (nonsufficient funds) fees, online banking, ATM or branch locations," said Raddon in its report. "Consumers indicated that they don't care about those things nearly as much as they value their free checking accounts. More precisely 39% of consumers indicated that they would switch financial institutions if you messed with their free checking." The study noted that the nation's biggest banks eliminated truly free checking accounts, but "each still offers consumers a way to get to 'free.' Whether it is through relationship- or channel-based activity, consumers are able to avoid service fees and retain their highly coveted free checking by giving the institution something in return. Requirements such as direct deposit, a minimum number of monthly debit card transactions or combined balance minimums are often easy for many consumers to meet." The research group, based in Lombard, Ill., noted that financial institutions that elect to keep their free checking product "may find themselves at a competitive advantage over their counterparts." Other changes that would prompt consumers to switch financial institutions include:
* Service quality, 35%; * Convenient branch locations, 29%; * Fair overdraft/NSF service charges, 20%; * Access to surcharge-free ATMs, 19%; * Convenient branch hours, 19%; * Deposit rates, 17%; * Online banking technology, 16%; * Large ATM network, 16%; * Overdraft coverage for checks, 14%; * Loan rates, 14%; * Overdraft coverage for ATM/debit, 13%; * Range of products/services, 11%; * Mobile banking technology, 6%; and * Other, 5%.
Other Resources

RSS print
News Now LiveWire
Stay tuned for coverage of @CUNA's BSA conference which starts Sunday. #CUNABSA #CUNACompliance
18 hours ago
Today's the last day to complete @CUNA's Home Depot data breach survey http://t.co/UcB8G9bVXe #StoptheDataBreaches
20 hours ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
21 hours ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
21 hours ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
21 hours ago