Tired of your bank? Here's why Americans are 'soft switching.'

Core Insights - The article discusses a new trend in banking called "soft switching," where customers are gradually changing banks by opening additional accounts at new financial institutions and shifting their transactions over time [1][2][3] Group 1: Soft Switching Trend - "Soft switching" is characterized by customers opening second or third checking accounts at new banks while maintaining their old accounts [2][4] - Over half of new checking accounts opened in Q3 2025 were additional accounts by customers who already had existing accounts [3] - The trend is emerging despite the historical reluctance of customers to switch banks, as the average American keeps the same bank account for 17 to 19 years [7] Group 2: Factors Driving the Trend - The ease of opening new bank accounts and the abundance of financial service offers are contributing to the soft switching trend [6] - Consumers are increasingly motivated to switch banks due to poor experiences with their current banks, leading them to explore new options [12] - Convenience is the primary factor influencing consumers' decisions to select a new bank, with fewer customers citing reputation, lower fees, or promotional offers [13] Group 3: Impact on Financial Institutions - Chime, a financial technology company, has emerged as a leader in the soft switching trend, capturing the largest share of new checking accounts in Q3 2025 [9][10] - Chime's success is attributed to its fee-free banking model and appealing features, such as early access to pay [10][11] - The conversion rate for Chime, indicating the percentage of potential customers who open accounts, was 77% in Q3, the highest among institutions surveyed [11]