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."