In banking jargon, customers who open an account with a bank for only a short period of time – usually only in order to take advantage of favorable services offered by that bank – but then close the account again and switch to another bank. Such “mobile customers” cause high costs, which have to be paid by everyone through cross-subsidization. – It is debatable whether account hopping can be curbed by appropriate clauses in the terms and conditions. In this case, an institution would have to charge a commission if the account is terminated before the end of a certain period. – See Chasing Winner, Least-Cost Customer, Noise Traders, Scalpers, Switcher, Interest Rate Bargain Hunters, Debt Restructuring Bubble.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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