Some of the biggest consumer banks are most in danger of losing customers, and that could mean losing billions in revenue, according to a recent survey.
Citibank, Bank of America, Capital One and Chase are among the top banks at risk of losing accounts to competing banks, according to the 2013 Retail Banking Brand Vulnerability Report from consulting firm cg42, which surveyed more than 3,600 primary bank account holders.
Overall, nearly 10 percent of account holders are planning to switch banks, according to the survey.
"It is a big number and it’s certainly higher than historical rates, yet a little bit lower than what we saw in 2011," said cg42 Managing Partner Stephen Beck. "So there has been a cooling or dampening effect in terms of those folks that are ready to really make the move," Beck said.
In total, banks stand to lose $627 billion in deposits and ultimately $34 billion in revenue, according to the firm's estimates.
The top 10 banks together are expected to lose $92 billion in deposits and $5 billion in revenue, according to the survey.
Citibank ranks as the bank most vulnerable to losing customers, according to the cg42 report. It is expected to lose 11.4 percent of its customers to competitors in the next 12 months, which could lead to $1.5 billion in lost revenue, according to the report.
Chase is expected to lose 9.6 percent of its consumer banking customers, resulting in a loss of $3.2 billion in potential banking revenue in the next 12 months, according to cg42's estimates. And Bank of America stands to lose $2.5 billion in revenue as 10.5 percent of its customers defect.
Consumers reported being frustrated with their banks because they don't think they're offering competitive rates or pricing and they're hitting customers with hefty overdraft charges, the survey found. And about 63 percent of consumers surveyed said they believe that banks care only about their own interests and not the interest of their customers, according to the report.
Yet 57 percent of consumers say it's too much of a hassle to switch banks, according to the survey.
Consumers are encouraged to tweet using the hashtag #bizfail when banks frustrate them, cg42 said.
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