Branch Closures Drive Customers Away: Survey

Comments (3)

Some consumers say branch closures will cost banks their business, according to new research.

Three in ten of consumers surveyed said they moved their accounts to another institution because of a branch closing within the last year, found a report published by Synergistics Research Corp. Thursday. The report's data also showed that 28% of branch users said they would switch their financial institutions if their current branches closed.

The report surveyed 1,000 consumers online. Other data nuggets gleaned in the research include:

27% of those whose bank branch was closed say it was probably a necessary action on the institution's part to cut costs, while 27% said they just stopped using branches; and

25% say the branch closure gave them a generally negative impression of the institution, while 25% said it made them uneasy about the safety of their money, and 23% said they did not give it much thought.

"As these results indicate, while many consumers will find some alternative method of coping with a branch closure, a sizeable number have or would switch providers in response," said Genie M. Driskill, COO of Synergistics, in a release. "Providers planning to reduce their branch networks should anticipate a degree of customer loss."


(3) Comments


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Comments (3)
Death of branches. Death of checks. Death of cash. In a country where there is insufficient will to get rid of pennies, these reports appear greatly exaggerated.
Posted by jim_wells | Friday, May 10 2013 at 3:21PM ET
Thank goodness for research firms like Synergistics that maintain a firm grasp on reality and refuse to get caught up whatever the current hype happens to be.
Posted by jim_wells | Friday, May 10 2013 at 3:24PM ET
An alternative headline could have been: "72% Consumers Don't Care About Bank Branches"
Posted by Serge Milman | Optirate | Friday, May 10 2013 at 3:27PM ET
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