SAN FRANCISCO—Could the long series of scandals committed by Wells Fargo finally be costing the bank some customers? One new report suggests that could be the case.
According to the report from consulting firm cg42, an industry-high 30% of Wells Fargo's customers are at risk of closing their accounts and seeking another provider. The report, based on an online survey of 4,000 Americans, projects that Wells Fargo could lose $93 billion in deposits over the next year, CNN reported.
That would represent about 7% of the bank's total deposits. The report found that a growing number of Wells Fargo customers are fed up with the nation's third-largest lender, CNN stated in its analysis.
“Their top complaint is that their bank was engaged in ‘dishonest, unethical or illegal practices.’ Others bemoaned that Wells Fargo is trying to sell them products they don't want or need,” CNN said.
Series of Scandals
As CUToday.info has reported, Wells Fargo has been caught up in a series of scandals, ranging from opening some three-million bogus accounts for customers as its employees scrambled to meet extremely aggressive sales targets to selling insurance products to customers that they did not need to foreclosing on mortgage borrowers who were not at fault.
Wells Fargo is currently operating under the rare circumstance of limits on its growth put in place by the Federal Reserve that have led it to exit certain markets, especially in the Midwest.