While most consumers report being pleased with their checking account experience, 22% report having used an alternative banking product, according to recent poll results from the TD Bank Checking Experience Index.
More than 1,500 consumers with checking accounts at various financial institutions were surveyed.
According to the results:
- 86% of consumers rate their day-to-day experience with their checking accounts as excellent or very good
- 85% of consumers say their banks are excellent or very good when it comes to accessibility
- 22% of survey respondents with bank accounts say that over the last three months they have used alternative banking products such as check cashing services (12%), money transfer agents (11%), and payday loans (4%)
Banks need to aim to better retain customers who are using alternative banking products. Though they don’t wholly disagree with fees, hidden fees are upsetting to customers, so transparency is key.
A large percentage of those surveyed reported that their experiences with debit cards and online banking are excellent or very good.
The poll also found that the two main reasons for switching banks are fees and life events. Of the 8% of respondents who reported closing or switching checking accounts in the past two years, the main reason for doing so was a life event such as moving (29%), followed by bank fees (27%).
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