New banks are popping up, established ones are expanding and profits are flowing in. The industry earned a record

$105.3 billion last year, said researcher Weiss Ratings, up from $87.5 billion in 2001.

Consumers don't have to use banks. A study found that in 2001, about 30 percent of U.S. households were "unbanked" or "underbanked," meaning they had dormant accounts or relied on payday-loan services, check-cashing outlets or the proverbial mattress, perhaps supplemented by credit cards.

In an increasingly competitive market, banks are keenly aware that customer loyalty depends on more than rates and fees. Convenience, personal attention and product availability also count.

"Attrition typically is driven by death, moving to another area or people getting really (angry) about something," said Alenka Grealish, a manager at Celent Communications, a financial research firm in Boston. Low interest rates on deposits can be a source of anger, but it's more likely customers will be upset over fees they view as unfair, she said.

As banks expand their offerings, customers can face a dizzying range of choices. The typical large bank has a sufficiently broad product line to satisfy anyone's money needs. Consumers must decide if they want to handle everything under one roof or split their business. Branch locations, fees, rates, electronic services and other factors all play a role. Here are some hallmarks of popular banks:

• Convenience and personal interaction. Online banking and ATMs were supposed to cut down on the number of branches, but it hasn't happened. In fact, banks are adding more locations.

"Customers like a place to go and people to talk to," said Charlie Scharf, head of retail banking at Bank One. "People want, need and love branches."

Many people still value a personal touch.

"I'm not the largest depositor, but they make me feel special," said Grant Belter, a 35-year-old Phoenix man who recently switched to Wells Fargo when his former bank was unwilling to offer the terms he sought on a personal loan. He also moved his savings and checking accounts and plans to start an investment program.

• A broad mix of products and services. Banking doesn't mean just loans, savings accounts, credit cards and ATMs. Most large banks now offer a lot more, including stock and bond investments, financial consultants, annuities, trust and estate planning and life insurance, even access to hedge funds.

Service innovations include automatic bill-paying, direct deposit and account-to-account transfers. People who sign up for such electronic banking services are more likely to stick around, Celent Communications noted in a report, and people with multiple accounts or services are much more likely to stay.

Phoenix resident Leon Solis, who recently opened a personal checking account at a Wells Fargo branch, said he also plans to open business accounts and check out the Spanish-language Web site. Several large banks have added Spanish Internet access in recent years.

• Competitive rates and fees. Customers usually won't leave just because their bank doesn't offer the best rates or lowest fees, but it's important to at least stay competitive.