Eighty-Eight Percent of Non-Customers Not Likely to Bank with Big Four
Recent Study Indicates Potential Growth for Smaller Financial
Institutions Due to Sharp Divide in Consumer Attitudes
LOMBARD, Ill., June 11, 2009 ― Raddon Financial Group (RFG), a provider of research-based
solutions to financial institutions and a strategic business unit of
Open Solutions Inc.®, recently completed a national survey of consumer
attitudes about the nation’s four largest banks, all of which were
recipients of TARP money.
The nationally representative survey of 1,155 consumers, fielded in
February of this year, found a lack of consumer interest in banking with
the Big Four (Bank of America, Chase, Citibank and Wells Fargo).
One-half of consumers have a banking relationship with one of the Big
Four banks. While 63 percent of current customers remain loyal to these
banks, indicating that they are either “extremely likely” or “very
likely” to continue as customers, the remaining 37 percent are less
likely to continue banking with them, and 12 percent said that they were
“not very likely” or “not at all likely” to remain customers. For
institutions competing against the Big Four, 12 percent represents seven
million customer households that may be looking for a new bank or credit
The opinions of non-customers are even more troubling for the Big Four.
When non-customers were asked how likely they were to become a customer
of one of the Big Four banks, no one indicated that they were “extremely
likely” to become a customer, and less than one percent said they were
“very likely” to become a customer. Eighty-eight percent said they were
“not very likely” or “not at all likely” to become a customer of one of
the Big Four banks.
“With such a large number of respondents to the survey, it is rare to
see a zero percent response to a question in a consumer survey,” said
Bob O’Meara, vice president, director of research for Raddon Financial
Group. “Consumers are clearly reacting to the financial crisis, which
appears to be seriously limiting the Big Four’s ability to acquire new
The study also revealed that community banks and credit unions might
significantly benefit from the waning consumer opinion of large national
banks. When asked about the impact that the banking industry crisis has
had on their future choices of financial institution, 63 percent said
they would consider a “local bank” and 43 percent cited a credit union
as their preference.
“In order for community banks and credit unions to attract customers
from the Big Four, they’ll need to be strong in technology, convenience
and service. Customers of the Big Four enjoy the convenience of
multi-branch and ATM access. They also have high adoption rates for
electronic channels, like online banking, mobile banking, text alerts
and e-statements,” added O’Meara.
Findings cited in this press release are from a nationally
representative direct mail survey with responses collected over a
four-week period beginning in February of 2009. The confidence interval
for the survey is in range of 1.7 percent to 2.9 percent at the 95
percent level of confidence.
RFG, a strategic business unit of Open Solutions Inc., has been
providing research-based solutions exclusively to the financial services
industry since 1983. RFG understands the industry and knows how
consumers and businesses interact with financial institutions. By
combining our practical know-how with best practices in research and
analysis, RFG helps financial institutions manage their customer
relationships and their organizations.
For more information about Raddon Financial Group, contact Dan McGowan
by email at email@example.com
or by phone at 800-827-3500. Visit Raddon Financial Group online at
About Open Solutions Inc.
Open Solutions Inc. offers a fully featured strategic information
management product platform that integrates core data processing
applications built on a single centralized Oracle relational database,
with Internet banking, cash management, CRM/business intelligence,
financial accounting and management tools, profitability tools, wealth
management, imaging, digital documents, interactive voice response,
technology services, HSAs, payments and loan origination solutions. Open
Solutions’ full suite of products and services allows banks, thrifts,
credit unions and financial services providers in the United States,
Canada and internationally to better compete in today’s aggressive
financial services marketplace, and expand and tap their trusted
financial relationships, client affinity, community presence and
For more information about Open Solutions or its financial product line,
contact Deborah Katz, VP, Corporate Marketing, by email at
or by phone at 860-815-5385. Visit Open Solutions’ Internet site at
Open Solutions Inc. is a registered trademark of Open Solutions Inc. All
other company and product names may be trademarks of their respective
owners. Copyright 2009 Open Solutions Inc. All rights reserved.
Editor’s Note: The correct usage of the company name, Open Solutions
Inc., is either referring to it as Open Solutions Inc. or Open
Solutions. Open Solutions no longer uses the acronym of OSI to refer to