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RFG Press Release

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 union.

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 customers.”

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.

About RFG
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 dmcgowan@raddon.com or by phone at 800-827-3500. Visit Raddon Financial Group online at www.raddon.com.

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 personalized service.

For more information about Open Solutions or its financial product line, contact Deborah Katz, VP, Corporate Marketing, by email at deb.katz@opensolutions.com or by phone at 860-815-5385. Visit Open Solutions’ Internet site at www.opensolutions.com.

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 the company.

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