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How Your Bank/Credit Union Can Fight ‘Soft Switching’ — and Even Steal a Few Accounts of Your Own


Your Members Aren't Leaving in a Huff, They're Just Fading Away.
Here's How to Stop It.

“Soft switching” is picking up as Americans’ financial activity continues to fragment among multiple players, according to new research from JD Power. This trend has implications both for banks and credit unions that want to retain and grow existing relationships, as well as those that would also like to expand by snapping up accounts from other institutions.

Key risk: Once someone establishes a relationship with another provider, their one-time primary financial institution risks slipping into second place — or even losing the relationship entirely.

Need to Know:

  • The average checking account customer now has three deposit accounts at different institutions, the study found.
  • One out of five consumers moved money away from their primary financial institution in the past three months, according to the study, an increase over the 17% rate seen in the previous edition.
  • Departures aren’t sudden and massive, but frequently subtle: “The risk is not immediate attrition — it’s gradual erosion of share of wallet,” according to JD Power.
  • This attrition is increasing over multiple demographic categories, the study found, as shown in the chart below.

“Any time money moves, it’s an opportunity for the customer to reassess primacy,” says Jennifer White, senior director of financial services intelligence at JD Power.

She says the firm’s new 2026 U.S. Retail Banking Satisfaction Study confirms a trend seen in multiple studies. When measures of customer satisfaction slide, people quietly open accounts with other institutions or with fintechs, often without shuttering a previous account — they just fade away.

White says there are multiple steps that institutions can take to protect their customer bases  while simultaneously making themselves attractive to someone who is looking to make a move.

AI antidote? The study also digs into the ways that banks are applying AI in ways that touch consumers, yielding insights about what they really find important. The public has become hyper-aware of the growing role AI plays in their lives, and they have opinions about it. This is especially notable because poor communication by institutions was identified as the leading cause of dissatisfaction in the study.

Read the complete article HERE 

  • Why Your Customers Begin Looking at Other Providers
  • Do Consumers Leave Because You Don’t Provide Money Management Tools?
  • Saving the Day Can Save Your Accounts
  • Don’t Be Shy About AI

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Remember, you're not alone with NCOFCU.org

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