BY JOE SALESKY
The Wells Fargo fallout is far from over, and the trust issues it has raised could be a boon for credit unions. Is your CU in a position to attract customers – and their associated billions of dollars – who have lost faith in the big banks? These “time out” approaches will help your credit union capitalize on this unprecedented opportunity.
Just when we thought the worst was over for Wells Fargo, a study released last month by cg42 reports the fallout has only begun. According to the study, Wells stands to lose $99 billion in deposits, $4 billion in revenue and up to 30 percent of its customer base, who are pursuing other banking options.
Unlike the mortgage crisis, this current “Trust Crisis” will not impact consumer asset values, though it has clearly impacted broad consumer sentiment toward large retail banks – both for Wells Fargo and others. This new crisis of trust may result in more regulation attempting to treat symptoms of the issue, instead of getting to the heart of the problem.
CRM failure has been well documented over the years, as shown by a 2009 Forrester Research report surveying 133 organizations that are using one of 24 leading CRM solutions. A staggering 47 percent of these organizations reported failure from their CRM platform. Wells Fargo’s use of thinly integrated Salesforce and Microsoft CRMs to track silos of leads, combined with faulty incentive programs – checked by disparate systems controlling quality when opening accounts online and in branch – likely caused this breakdown.