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Big banks still vulnerable

By David McMillin · Bankrate.com
Tuesday, July 30, 2013
Posted: 5 pm ET

If a new study is correct, the biggest banks in the country are poised to lose $92 billion worth of deposits within the next year.

According to the 2013 Retail Banking Brand Vulnerability Study released by New York-based management consulting firm cg42, 26 percent of customers are frustrated with their primary banks. The firm predicts those frustrations will translate to many of those customers moving their money to new homes.

The study only analyzes responses from customers at the 10 biggest banks in the country, and one member of the banking industry stands out as an at-risk institution in terms of customer satisfaction. Citibank ranked at the top of the list, and cg42 estimates that more than 11 percent of Citibank customers will move to another institution.

"Customers still feel that their financial institutions aren't serving their best interests, and they're frustrated," Stephen Beck, founder and managing partner of cg42, said in a statement.

Here's a look at the complete list in order of most vulnerable to least vulnerable.

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

Still, there are positive signs for the banking industry when comparing the results with 2011, the first year this report was conducted. At that time, big banks were expected to lose more than $185 billion in deposits. Bank of America occupied the worst spot, still reeling from the backlash of its debit card fee fiasco, and plenty of other big institutions were beginning to implement new fee structures, too.

While it looks like customers are growing more satisfied with banks, it seems a majority of customers still share one general complaint: Banks are simply too big. About 55 percent of respondents indicated that they are uncomfortable with how large the major banks have become.

Have you been thinking about moving your money to a new institution. Or has your bank done anything to make you feel happier about calling it home?

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