Fed-up Wells Fargo customers could pull billions from bank - report

by Ryan Smith10 Oct 2018

Fed-up Wells Fargo customers could leave the bank in droves over the next year, taking tens of billions of dollars in deposits with them.

According to a report by consulting firm cg42, 30% of Wells Fargo’s customers are at risk of bailing on the scandal-plagued bank. The report projected that Wells Fargo could lose $93 billion in deposits over the next year – about 7% of the bank’s total deposits, according to a CNN report.

The study found that a growing number of Wells Fargo’s customers are dissatisfied with the banking giant. Customers’ top complaint was that Wells Fargo engaged in “dishonest, unethical or illegal practices.” Customers also complained that the bank continually pushed products they didn’t want or need, according to CNN.

Steve Beck, managing partner at cg42, told CNN that customers’ growing disillusionment with the bank is a direct result of Wells Fargo’s two years of near-constant scandal.

“The bad behavior is coming home to roost,” Beck said. “Customers are saying, ‘We’ve had enough. It’s time to move on.”

According to cg42, about 12% of Wells Fargo’s customers are expected to move their money to another bank in the next year. Even factoring in new business, the bank’s net deposits could decrease by $75 billion – which would translate to a loss of $2.1 billion in sales, according to CNN