US Banks’ account fee charges have little influence on
customers’ choices to switch their bank accounts, according to a
report from JD Power.

The survey, 2011 U.S. Retail Bank New Account Study,
revealed that increased switching rates among US bank customers
have risen from 7.7% in 2009 to 8.7% in 2010 – but account fees
were not the main reason.

Advertising, a dense branch network, products and services,
promotional offers and past experiences with the bank as well as
recommendations and the bank’s reputation are the biggest
influences on customers when they decided to switch their bank, the
survey found.

Rockwell Clancy, vice president of the financial services
practice at J.D. Power and Associates, said:

“It’s undeniable that the ‘blunt instruments’ of ad spend,
branch density, and promotional offers such as gift cards have been
effective during the past year in capturing market share.

“The question is whether these provide sustainable competitive
advantage, particularly when compared with customer acquisition
gains resulting from positive past experiences with a brand and
recommendations from friends and family, which are harder to
duplicate.”

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The study surveyed 4,791 customers in November and December 2010
who shopped for a new banking account or new primary financial
institution during the past 12 months.