• August 26, 2010

Many consumers continue to be wary of larger banks, citing fees and distrust, according to a study from Mintel Comperemedia.

The study shows only 36% of big bank customers trust their bank, compared to 57% of credit union customers. Despite that fact, 48% of those surveyed have their primary checking account at a large national institution.

Research shows that people would feel less resentful about paying fees if larger banks made a greater effort to do more relationship marketing with their customers.

Consumers really do want a relationship with their banking institution, one based on openness and fairness, says Susan Menke, VP, behavioral economist at Chicago-based Mintel Comperemedia. "But people are banking at larger banks primarily for two reasons: Convenience and rewards," she says.

One in 10 participants have switched their primary bank account to a credit union in the past year. Meanwhile, almost 60% of respondents agreed that "trust in a brand is more important than price."

Consumers described trust in a financial brand in very similar ways to trust in personal relationships, with more than 75% placing "honesty" and "respect" at the top of their list of 12 attributes for both.--Tanya Irwin