New Study Projects Top 10 Retail Banks to Lose $185 Billion in Deposits Over Next 12 Months

Wed Nov 9, 2011 2:24pm EST

* Reuters is not responsible for the content in this press release.

  WILTON, CT, Nov 09 (MARKET WIRE) -- 
cg42, a Connecticut-based boutique management consultancy, today released
the results of a groundbreaking study that ranks the top national retail
banks according to the risks associated with their greatest
vulnerabilities. Based on survey of 5,600 real, primary customers, the
Brand Vulnerability Index (BVI) measures the frustrations of consumers
and their corresponding effects on behavior, most notably attrition. 

    The study indicates that $399 billion in customer deposits are in
jeopardy ("in play") at those 10 banks, and $185 billion of that amount
is projected to exit in the next year. Of the 10 banks included in the
study, Bank of America has the highest brand vulnerability, while PNC has
the lowest. 

    "It's no surprise that customers are growing increasingly frustrated and
feeling like many of these institutions are taking advantage of them --
the data reflects that," said Stephen Beck, Founder and Managing Partner
of cg42. "But now -- for the first time -- we actually have a way to
determine the effects of those frustrations on the balance sheet. It's
critical for financial institutions to understand how their products,
services and operating policies truly impact customer behavior." 

    "The Brand Vulnerability Index will ultimately help companies improve
their offerings and gain a competitive edge by assessing customer
sentiment effectively -- and it goes far beyond the utility of
traditional 'brand strength' measurements." 

    BVI surveyed four components of brand vulnerability, including: Frequency
of customer frustrations; customer sharing behavior (for example,
disclosure of frustrations on social media); the impact of frustrations
on customer behavior; and the uniqueness of those frustrations to a
particular bank. 

    Responses were collected, analyzed, and modeled to produce a ranking of
the top 10 retail banks by vulnerability, from most to least:

    1. Bank of America 
 2. Citibank 
 3. Wells Fargo 
 4. Capital One 
 6. TD 
 7. BB&T 
 8. US Bank 
 9. SunTrust 
 10. PNC

    The following takeaways represent several key findings from the study:

--  10.3% of Bank of America's customers are expected to defect and move
    their deposits to another institution in the next year
--  71% of customers believe that banks merely claim to have consumer
    interests at heart but in fact only care about their own interests
--  50% of customers are uncomfortable with how large some banks have
--  70% of customers prefer to diversify their financial relationships
    across several providers


The results of BVI carry broad implications for banks and their
customers. How should banks allocate resources to improve customer
satisfaction? What can they do to maintain deposit levels? How can they
exploit their competitors' weaknesses to capture market share? The value
of illuminating vulnerabilities -- as opposed to strengths -- is

    The BVI framework can be applied to other industries to produce similar
results; cg42 will release new studies in the coming year. 

    About cg42 
 cg42 is a boutique management consulting firm that helps
clients effectively create demand through customer-led growth strategies.
We are passionate about helping our clients move beyond the rhetoric of
marketing today, operating under a model that is based on strong
discipline, purpose, and objectivity. Our expert team is comprised of
senior professionals with vast industry experience, having successfully
worked with major global brands in the financial services, professional
services, technology, telecommunications, healthcare, and consumer goods
and services sectors. For more information, please visit:
And remember -- Don't Panic. 


Alexis Stoller

Copyright 2011, Market Wire, All rights reserved.

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