New study shows more bad news for Wells Fargo

wells-fargo

It looks like Wells Fargo’s troubles are getting worse.

If you’ll remember the embattled banking giant was fined $185 billion dollars last month for creating “bogus accounts” by signing up millions of customers for programs without their knowledge of consent. Some banking insiders said it was like: “lions hunting zebras” by targeting certain customers when opening unauthorized or unnecessary accounts.” About 14% percent of customers are actually projected to switch banks.

Wells Fargo searched for the “weakest” clients who would put up the “least” amount of resistance” including:

  • Older adults with memory problems
  • Immigrants who did not speak English very well
  • Or small business owner with several lines of credit

Now, according to a new study released by management consultants: “CG-42” Wells Fargo stands to lose:

  • $99 billion dollars in deposits
  • $4 billion dollars in revenue
  • and a 30% percent DROP in their customer base

More from CNBC below.

One of the more interesting things they found about Wells Fargo is that customer concerns over “so-called cross-selling”– (The practice of selling or suggesting related or complementary products to a prospect or customer) didn’t just start when the scandal broke in September. The study also found that before the scandal, 60% of respondents had a positive impression of the bank. After news of the scandal broke, that number dropped to just 24%. The way the bank is perceived by customers in a negative way increased from 15% to 52%.

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