Why Millennials Are Dumping Big Banks (and Going Local Instead)

Millennials like a lot of things, but big banks may not be one of them. Local and community banks saw a 5% bump in business from those aged between 18 and 34 years old, an Accenture report says, while larger national and regional banks experienced a 16% dip.

Here's why:

1. Costly fees

Millennials are turned off by fees from ATM withdrawals, account maintenance, overdrafts and the list goes on and on. Big bank fees averaged $15.15 compared to $11.51 at smaller competitors, a survey by MoneyRates.com found.

2. Online research

Millennials do their due diligence when choosing a bank, with 81% of them browsing the web for the best prices and reviews before signing up.

3. Lack of loyalty

Millennials were more likely to switch banks at almost twice the pace of all other age groups. Over a 12-month period, 18% changed. [Bloomberg]

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Related Topics: Accenture , Banks , Millennials , The Millennials
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