Wells Fargo Reports 44% Decline in New Accounts after Scandal
Wells Fargo recently released its customer activity data from October 2016, which monitors trends including spending, new accounts and closed accounts. The report indicated a 27% decline in new account openings from September to October of this year, and a dramatic 44% decrease compared to year ago levels. This was largely due to the fake account scandal that came to light last month.
Applications for consumer credit cards were also down, 35% from September to October and 50% versus a year ago. Branch banker interactions were down 11% for the month and 22% for the year, but Wells Fargo contributes that to an increase in mobile banking activity. Total digital sessions were up 7% from last year.
Customer loyalty and overall branch satisfaction did drop slightly from September to October, but not as much as one might expect after the scandal. Debit card point-of-sale transactions actually increased from $658.3 million in September to $686.0 million in October, though part of that may be from a general sales increase from the approaching holiday season.
Wells Fargo will continue to publish monthly reports as part of their “ongoing commitment to transparency.” The next report is due in mid-December, which will track changes from the month of November.
“We recognize we have work to do and we are focused on strengthening our relationships with existing customers and building new ones with potential customers,” said Mary Mack, head of community banking at Wells Fargo.