Survey Reveals Banks Aren't Tapping Their Own Customers

Americans would prefer to conduct more business through their primary banks, but those banks don't provide incentives to do so, according to a survey by InsightExpress. The online survey of 500 banking customers found that two-thirds of respondents would prefer to have all their financial needs met by one institution. However, 78 percent obtained an auto loan from a different lender, 72 percent got their mortgages elsewhere and 77 percent use a credit card from another financial institution, the survey reveals.

Respondents pointed to a lack of benefits as the key reason they didn't do more business with their primary banks. They suggested that they would be willing to have a deeper relationship if their banks offered: free checking (46 percent), higher interest rates on accounts (43 percent), reduced fees (41 percent), free online banking (40 percent), consolidated monthly statements (30 percent), lower loan rates in exchange for higher minimum balances (29 percent), and rewards points toward merchandise or travel (28 percent).

Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 14, No. 3, 7/05