More than half of survey respondents prefer national banks to local
Local banks appeal to the sentiments of potential customers by offering the personal touch in banking needs, but customers seem to prefer national banks for savings, checking and loan needs.
A Spectrem Group survey in June revealed that out of 1,034 respondents, 53.5 percent prefer national companies for checking, savings and loan needs, compared to 39.6 percent that prefer a local company. However, one survey subset, those whose net worth is less than $100,000, prefer local banking to national banking, by a margin of 51.7 percent to 45.0 percent.
Conversely, those respondents with a net worth over $5 million much prefer national companies, 57 percent to 32 percent for local companies.
Respondents were offered the choice of multi-national companies as well, but they were preferred well below the other two choices, as low as seven percent by the total group of respondents
There does appear to be one group of respondents who do appreciate the individual attention a local bank provides. Although 46.3 percent of business owners prefer national banks, 44.4 percent of business owners prefer local companies, which is a much closer difference between the two choices than the total spread of 14 points.
Business owners use their banks for loan purposes, and are interested in creating a relationship with their banker in order to get the best loan rates, which helps to explain their greater interest in local banks.
Again, the other side of the coin is corporate executives, who not only prefer national banking companies over locals (60 percent to 27.5 percent) but also report the greatest number of respondents who prefer multi-national banks (12.5 percent).
Multi-nationals also appeal to one other group. The survey showed that 16.7 percent of respondents under the age of 40 reported preferring multi-national companies, the highest reporting group with that opinion.
From a 2012 Spectrem Group survey, Bank of America is the most preferred bank among millionaires surveyed, but only 13 percent of respondents chose BofA, an indication of the wide list of choices available in the banking market. Wells Fargo was listed second (11 percent) and JP Morgan/Chase third (10 percent) but 53 percent of respondents selected other banks from a long list of choices.
Among younger millionaires (under 44 years of age) JP Morgan/Chase was preferred by 24 percent of respondents, by far the most popular choice among any bank or age group. Still, 39 of those respondents chose a bank outside the top three.
Bank of America was chosen by 29 percent of senior executives, and 52 percent of senior executives banked with one of the top three providers.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.