News

Smaller banks win in 'exodus' from big ones

February 28, 2012

Despite the concern of some small banks that the financial collapse would cost them customers, the opposite seems to be occurring: small FIs are gaining accounts while larger ones see theirs pull out and move on.

According to a story in the Orlando Sentinel, in an "increased exodus" from the big banks, customers flocked to small banks and credit unions last year, boosting new accounts by 10.3 percent, based on a survey conducted by consumer pulse-taker J.D. Power. The survey also reported that at the same time, 10 percent of big bank customers switched their accounts, mostly to smaller institutions.