How Wells Fargo's Customers Responded to Scandals

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wells Fargo (WFC) consumers appear to be standing near the bank, which has been hit by a number of scandals in recent years, including the creation of 3.5 million fake accounts using involuntary customer names."data-reactid =" 15 ">Wells Fargo (WFC) consumers appear to be standing near the bank, which has been hit by a number of scandals in recent years, including the creation of 3.5 million fake accounts using involuntary customer names.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In its report on the results on Friday, the bank said the number of its customers carrying out primary controls increased by 1.7% compared to the previous year, a modest but notable increase given the bad news continued at plague l & # 39; company."data-reactid =" 16 ">In its report on the results on Friday, the bank said the number of its customers carrying out primary controls increased by 1.7% compared to the previous year, a modest but notable increase given the bad news continued at plague l & # 39; company.

The bank exceeded expectations in terms of revenue with $ 21.9 billion and net profit, although it slightly missed earnings per share with $ 1.16.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Other key indicators also showed a positive movement. The number of customers using digital platforms – mobile and online – has increased 4% over last year, and credit card and credit purchases have also increased. (This coincided with a fall in ATM and counter transactions, a transfer from the bank explained by a migration to digital channels.)"data-reactid =" 18 ">Other key indicators also showed a positive movement. The number of customers using digital platforms – mobile and online – has increased 4% over last year, and credit card and credit purchases have also increased. (This coincided with a fall in ATM and counter transactions, a transfer from the bank explained by a migration to digital channels.)

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Community and small business consumer deposits decreased by 2% over the past year and 1% from the previous quarter. And mortgage applications have dropped nearly 22% since last year. These movements took place during a dynamic US economy, which shows that Wells Fargo is not fully in a position to benefit from growth."data-reactid =" 30 ">Community and small business consumer deposits decreased by 2% over the past year and 1% from the previous quarter. And mortgage applications have dropped nearly 22% since last year. These movements took place during a dynamic US economy, which shows that Wells Fargo is not fully in a position to benefit from growth.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Other numbers hurt Wells Fargo's consumer performance in the near term. The number of active customers in the digital market has not increased at all since the second quarter. The bank recorded a 0% increase, while the number of consumer control customers increased by only 0.1% over the same period."data-reactid =" 31 ">Other numbers hurt Wells Fargo's consumer performance in the near term. The number of active customers in the digital market has not increased at all since the second quarter. The bank recorded a 0% increase, while the number of consumer control customers increased by only 0.1% over the same period.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "President and CEO Tim Sloan said that at the earnings call, "the maintenance of our major customers conducting consumer audits has reached its highest level in five years in the third quarter.""data-reactid =" 32 ">President and CEO Tim Sloan said that at the earnings call, "the maintenance of our major customers conducting consumer audits has reached its highest level in five years in the third quarter."

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Sloan also highlighted the bank's efforts to appeal to young people. The CEO said the bank had eliminated service fees for chequing accounts of young adults and teens and was looking to encourage more younger customers to "join – and stay"."data-reactid =" 33 ">Sloan also highlighted the bank's efforts to appeal to young people. The CEO said the bank had eliminated service fees for chequing accounts of young adults and teens and was looking to encourage more younger customers to "join – and stay".

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "With the bank withdrawing its aggressive cross-selling tactics that caused problems for Wells Fargo – even entering the wealth management divisions – Targeting younger customers is an attempt to create more business. And since it's usually very embarrassing for people to leave a bank, these clients can turn into lifelong money generators."data-reactid =" 34 ">With the bank withdrawing its aggressive cross-selling tactics that caused problems for Wells Fargo – even entering the wealth management divisions – Targeting younger customers is an attempt to create more business. And since it's usually very embarrassing for people to leave a bank, these clients can turn into lifelong money generators.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Another customer strategy that has paid off for Wells Fargo: credit cards. Chase (JPM) dominated credit cards with flashy deals like the Sapphire series, and Wells Fargo sought to get into the mix. "data-reactid =" 35 ">Another customer strategy that has paid off for Wells Fargo: credit cards. Chase (JPM) dominated credit cards with flashy deals like the Sapphire series, and Wells Fargo sought to get into the mix.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In July, the bank launched its Propel American Express credit card. Already, the total volume of credit card purchases has risen by 1%, which accounted for all of the growth from one year to the next. In the third quarter, customers created more than 539,000 new credit card accounts, an increase of 27%. The total volume of credit card purchases has increased by 9% since last year."data-reactid =" 36 ">In July, the bank launched its Propel American Express credit card. Already, the total volume of credit card purchases has risen by 1%, which accounted for all of the growth from one year to the next. In the third quarter, customers created more than 539,000 new credit card accounts, an increase of 27%. The total volume of credit card purchases has increased by 9% since last year.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""The response to the propulsion of credit cards has exceeded our expectations," said Sloan. "data-reactid =" 37 ">"The response to the propulsion of credit cards has exceeded our expectations," said Sloan.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "When calling the results, analysts asked if there were more business-related scandals ready to dissipate to further undermine the bank as it seeks to restore confidence. Sloan noted that most of the stories he had seen in the press were continuations of old stories, not news."data-reactid =" 38 ">When calling the results, analysts asked if there were more business-related scandals ready to dissipate to further undermine the bank as it seeks to restore confidence. Sloan noted that most of the stories he had seen in the press were continuations of old stories, not news.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""I hope we will not have new problems," said Sloan."data-reactid =" 39 ">"I hope we will not have new problems," said Sloan.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Ethan Wolff-Mann is a Yahoo Finance writer who focuses on consumer issues, retail, personal finance, etc. Follow him on Twitter @ewolffmann."data-reactid =" 41 ">Ethan Wolff-Mann is a Yahoo Finance writer who focuses on consumer issues, retail, personal finance, etc. Follow him on Twitter @ewolffmann.

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