Much is being written today about the retail industry in decline. Digital commerce is growing, often at the expense of traditional brick and mortar. As a result, thousands of stores are closing. A similar trend is being experienced in banking, with a net decrease of over 1000 branches over the past year.
Fines and settlements paid by our large bank group significantly picked up for the month of May. Six of the 18 largest institutions headquartered in the U.S. and Europe paid out a combined $1.5 billion, doubling our total for the previous four months to $3.3 billion.
Like February, March was a relatively quiet month for fines, penalties, and settlements. Our large bank group – the 18 largest institutions headquartered in the U.S. and E.U. – incurred three fines, bringing our 2017 total to $1.6 billion.
Dissatisfaction with a bank in terms of its service quality, fees, rates, products and convenience are consistently named as the controllable drivers of attrition. When was the last time your bank conducted a customer experience audit to specify customer pain points throughout your organization? For most banks, the answer is “never”.
In January, our large bank group – the 18 largest institutions headquartered in the U.S. and E.U. – reached one settlement and one fine, bringing total fines, penalties, and settlements to $500 million. This time last year, our bank group incurred $10 billion in penalties, all relating to Residential Mortgage-Backed Securities.