Comments on: Banks Add Deposit Dollars, Despite Dropping Deposit Customers

By: Ally Bank, TD Bank Win the Race for Retail Deposits, Bank Innovation Finds | Bank Innovation

Tue, 15 Jan 2013 14:33:44 +0000

[...] Overall, the Top 20 banks added 2.7% to their deposit dollars YOY, while dropping 9.9% of accounts — a significant decline. This continues the trend observed by Bank Innovation last quarter. [...]

By: JJ Hornblass

JJ Hornblass — Fri, 21 Sep 2012 18:55:22 +0000

A reasonable take. Certainly, we agree with you regarding HSBC. As for whether the banks shed the customers or the customers liquidated their accounts, there’s probably a little of both going on.

By: Jim Marous

Jim Marous — Fri, 21 Sep 2012 15:07:46 +0000

Interesting data, but I may take a different view on some of the assumptions. For one, as opposed to banks ‘shedding lower-balance accounts’ what most likely occurred was the closing of relationships by customers who needed the money for cash flow reasons such as living expenses. Alternatively, banks may not have courted higher balance customers as much as customers may have grown already existing relationships due to the economy as they have also paid down credit balances. Finally, the reduction in HSBC accounts and balances most likely was caused by the transfer of branches (and balances) that occurred last quarter.