Wells Fargo Credit Card Accounts down 47% after Scandal
Ever since the Wells Fargo fake accounts scandal came to light, the bank has continued to see declines in new checking account and credit card applications. According to a press release from the company, credit card applications this January were down 47% versus a year ago, and checking account applications declined 31% during that same time frame.
While these statistics sound bad on the surface, Wells Fargo remains optimistic about their situation.
Mary Mack, head of Community Banking, said, “After factoring in day count differences and typical seasonality, trends were relatively stable in January and within our expectations.” For instance, branch interactions were down 12% from December, but that is traditionally a high-volume month. Teller activity only decreased 4% compared to year-ago levels.
It appears existing Wells Fargo customers are still relatively satisfied with their services. The problem the bank is facing is getting new customers in the door. Overall customer satisfaction was at 77.2% for January 2017, down only a small amount from 77.8% last January. Active consumer credit card accounts were up 6% year-over-year, even though new account applications were down. The same can be said about debit cards, with point-of-sale debit transactions up 5% from last year.
Wells Fargo has significantly increased its security measures since the scandal, and now conducts random audits at their locations without the 24-hour notice they had previously provided. This notice gave employees enough time to cover their tracks before reviewers visited the branch, and may have been the reason it took so long for the bank to uncover the problem.