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.
Over the past 20 year most banks have invested heavily in new payments and distribution services and capabilities for both the consumer and commercial markets. Has the banking industry gone far enough and fast enough to both protect its competitive position and expand its market reach?
October brought with it two settlements for our bank group. The settlements, incurred by Royal Bank of Scotland Group Plc (RBS) and Wells Fargo & Co., increased the year-to-date total by $170 million, to just under $18 billion.