Datahead: Profit, Promotions, NSF and More…
7 in 10 people considered, then selected a large national bank.
— J.D. Power & Associates
6 in 10 people considered, then selected a regional bank.
— J.D. Power & Associates
1 in 4 people say that they chose a specific bank because of a promotional gift/cash award or an attractive short-term interest rate. 1 in 4 of those attracted by incentive say they will definitely will” or “probably will” switch banks again in the next 12 months.
— J.D. Power & Associates
The recent rate on a 30-year mortgage, the lowest rate in history: 4.58%
— Business Week
74% of total fee income collected by U.S. banks in 2007 that came from NSF charges.
— Celent
$30 billion in NSF charges collected by U.S. banks in 2007.
— Celent
BofA is expected to lose $600 million in overdraft revenue this year.
— Wall Street Journal
The approximate number of unprofitable checking accounts in the U.S.
— Celent
36.4% unprofitable credit unions in Q1 2010, versus 50.4% in 2009.
— CreditUnions.com
74% of financial institutions do not have a satisfactory social media policy.
— Evalsrus
$400B
Total of all nonperforming loans at U.S. banks (5.46% nationwide).
– Gonzo Banker
63%
Percentage of U.S. checking accounts predicted to be opened via the internet by U.S. consumers under age 35 in 2015.
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- Study Shows Free Checking Marching Towards Extinction at Big Banks
- Free Checking Not Dead Yet at Credit Unions
- People Switching Banks More Often, Study Reveals Surprise Reasons
- Customers Leave BofA and Wells Fargo, But Half Switch To Another Big Bank
The chart highlighting Google Trends data for the term “credit union” is interesting in that it reveals, sadly, a significant missed opportunity for the credit union industry. During the three-year period from 2007 through 2010 when news references for credit unions increased dramatically, the number of consumer-generated searches for credit unions didn’t grow much at all.
While the credit union industry has made some respectable incremental strides to improve consumer awareness, there is quite a bit of work ahead of us. At the institutional level, credit unions need to expand their marketing functions to include public relations and advocacy. Particularly at community credit unions, management needs to place focus on social media strategies and identifying ways to reach out to local media to share the industry’s message.
I look at the right side of the graph and wonder how much lost membership and portfolio growth (and missed revenue!) is represented by the lagging slope of the Google search volume index trend. As an industry, it’s time for us to evaluate the potential return on investment from PR and brand-building activities compared to traditional new account and enrollment incentives. The window of opportunity for credit unions to capitalize on consumer dissatisfaction with banks will not stay open forever!
Great insights Andrew. Thanks for commenting.