why 'bank transfer day' won't workMore than 64,000 of Americans have signed up to participate in "Bank Transfer Day" on November 5. Most will likely fail in their mission to switch to a new bank, according to a report released Tuesday.

Six out of 10 new checking account customers abandon online applications at new financial institutions, says this research from Javelin Strategy & Research, a market research group for financial services and payment companies.

"Newcomers to banks appear to be running into a lot of obstacles," says Mark Schwanhausser, senior analyst for multichannel financial services with Javelin.

Many of the obstacles to opening a new account are in place for security reasons. They include steps such as verifying an applicant's identity and that the money to open the account is rightfully theirs. But these same steps also slow down an online process that is perceived to be a faster, easier way to bank.

What can be done quickly in-person at a brick-and-mortar bank can often take more than a day the online way.

Using secret shoppers, the Javelin research looked at 10 of the biggest consumer banks in the United States as well as a select group of five "tech-savvy" institutions. The report also found that customers abandoned applications to smaller institutions at a higher rate than they did to the big banks.

With more than one-third of Americans expressing interest in changing banks, according to a recent survey from Intuit Financial Services, the poor success rate for new accounts could present problems for smaller institutions hoping to draw in new customers.

"In terms of being a visible protest it is not a great one. It takes time to see [the change] in aggregate numbers," Schwannhausser says. Last year only 7% percent of banking customers changed financial institutions, down from 11% the previous year.

Catherine New can be reached at catherine.new@huffingtonpost.com.

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cswint25

GOODBYE!

Bank of America!

Wells Fargo!

Citibank!

See you later..........or maybe not:) :) :)

November 07 2011 at 1:31 PM Report abuse rate up rate down Reply
J C

Poor reporting there Catherine New , but you are entitled to your opinion. When people physically go into their banks and withdraw their balance, cancel their credit cards, the smaller banks will welcome them with open arms. Perhaps today they opened an online account, and will wait until Monday to make a face to face contact with the smaller bank.

Did you not even realize that a social media site such as Facebook and bank transfer day would even get national attention? Look for more changes in our country's big businesses over the next 12 months. Keep your eyes peeled for the moving trucks on Jan 20, 2013 in Washington, too!

November 05 2011 at 4:32 PM Report abuse +1 rate up rate down Reply
IRL

shill - you are a shill - worthless journalism once again. Support the movement - or promote misery. Why would you chose to promote misery? It is easy to move your money, Bank of America is not entitled to YOUR money. Put your money into a bank that supports YOUR community, NOT the CEO's bonuses.

November 05 2011 at 4:14 PM Report abuse +2 rate up rate down Reply
smithjm549

This is propaganda. Don't believe CATHERINE NEW. A run on the banks will hurt them severely. KEEP IT UP PEOPLE! THIS IS A FANTASTIC IDEA. Oh and CATHERINE, who's signing your paycheck?

November 05 2011 at 12:25 PM Report abuse +2 rate up rate down Reply
1 reply to smithjm549's comment
IRL

move your money people, are you daft? why would you give your money to a big bank to use to make themselves richer, instead of supporting your local community by putting your money into a credit union?

November 05 2011 at 4:16 PM Report abuse rate up rate down Reply
Andrew Ray Pease

How many have opened credit union accounts in the last month? How many millions of dollars have been moved from too big to fail banks already? While the author waits for failure, the success is already done.

November 05 2011 at 11:38 AM Report abuse +1 rate up rate down Reply
britishsteel

TAX Revolt spread the word all over and on facebook 4/15/2012 Burn your 1040's Deny them your sanction! They are bailing out crooks instead of JAILING them with YOUR TAX DOLLARS. Stop FUNDING THEM ! REVOLT 4/15/2012.

November 05 2011 at 6:33 AM Report abuse +1 rate up rate down Reply
NJ-PA Dad

What a bunch of nonsense.

November 04 2011 at 12:07 PM Report abuse +1 rate up rate down Reply
NJ-PA Dad

What a bunch of nonsense.

November 04 2011 at 12:07 PM Report abuse +1 rate up rate down Reply
Mike Gervasi

The point of the movement is not to switch "banks" but to switch from a bank to a Credit Union.

November 04 2011 at 9:52 AM Report abuse +1 rate up rate down Reply
sweet Barbara

I went to bank of america today and closed my acct. It was very easy and took me 10 minutes,only because the bank personel knew I was closing my account, she took HER time, but all & all it was very easy.

November 03 2011 at 4:09 PM Report abuse +1 rate up rate down Reply