Consumers Eschew 'Relationship'Banking
ORLANDO - (11/18/05) -- The driving force behind manyfinancial institution's retail strategy, "relationships," ranksvery low on most consumers' desires, according to a new study bythe Bank Administration Institute. The study found that almost 70%of bank customers described themselves as either uninterested oreven "skeptical" of any "relationship" with their financialservices provider. The "Frontline Experience Study" of 3,700consumers found that consumers and banks view what constitutes a"relationship" in different terms. While banks view relationshipsas the number of accounts a person has with a bank, consumersviewed relationships in terms of trust and confidence and acting inthe consumer's best interest. Paul McAdams, BAI's senior managingdirector of research, said it was troubling that 40% of allconsumers indicated they do not trust their bank. The findings werereleased at the same time other BAI research indicates that 90% ofbanks have identified "building relationships" as one of theirgoals. In a survey of bank front-line employees, 25% said they wereill-prepared to handle the demands of relationshipbanking.