Things seem to be getting worse and worse for Wells Fargo. Then again, is anyone surprised?
The bank was recently fined $185 million for “widespread illegal” sales tactics, in which employees opened two million fake bank accounts. This scandal has caused distrust, anger, and major scrutiny from Congress. Consequentially, Wells Fargo CEO John Stumpf recently resigned, leaving Tim Sloan to presumably lead the shaky bank.
How has all of this affected its customers?
These results are very surprising to me. 6% of current Wells Fargo customers will be closing their accounts, while 10% of current customers will be staying. The majority of non-customers would not consider opening an account with Wells Fargo, which is not surprising.
Who’s Staying with Wells Fargo?
56% of those who are staying with Wells Fargo are women. Roughly ¼ of them are over the age of 65. Additionally, 57% of them live in the suburbs. They are also more likely than those who are closing their accounts to have children ages 3-5.
They are also more likely than those leaving to believe that finding a job will become harder, or stay the same, over the next 6 months.
Another interesting insight is that 30% of them consider music a passion of theirs – significantly higher than other groups.
What this information says to me is that change may not be a possibility for them right now. Many of these customers are older, and others have young kids. Additionally, with uncertainty about finding a job, changing financial institutions may seem cumbersome with all other aspects of their lives considered. Therefore, they may be staying out of the desire for consistency, rather than satisfaction with Wells Fargo.
To appease these customers who are staying with the company through thick and thin, Wells Fargo may want to appeal to these card holders’ love for music.
Of the customers who will be closing their accounts, 46% are women. Given that 56% of people who are staying with Wells Fargo are women, it seems that female customers are more likely to stay than to go.
The majority of them are over 35 years old and 48% live in the suburbs – slightly less than those who are staying.
45% think the economy will worsen over the next 6 months, while only 25% of those staying agree. Despite this, they are more likely to think finding a job will be easier over the next 6 months.
Based on all of this, it seems that those who will be closing their accounts are more able to make a change in banks than those who are staying. Though they may be somewhat skeptical of the economy, they’re more confident in the ease of finding a job. Without young kids, and at a grounded middle-age, this might factor in as well.
Not So Far Gone
As it turns out, the Wells Fargo scandal may not be enough to force all of its customers to make a change of banks. There are still 10% that will stay with them, though it looks like they might be doing so out of necessity and convenience rather than loyalty.
Wells Fargo should probably not take these customers for granted. The bank may want to capitalize on their music preferences particularly, like Citibank had done by offering pre-sale tickets to certain events and concerts.