ShopTalk: Banking on it
One of the most personal relationships that consumers have is with their financial institution. Paychecks flow in and out of personal accounts. Bills are paid, loans are extended, and ATM transactions are made. Consumers depend on their financial institutions to be there when they need them, and to provide financial tools that can help turn their dreams into realities.
And financial institutions are tasked with meeting the ever-changing needs of modern consumers. Banking apps, remote deposit capture, and personalized banking products are offering that consumers, especially young consumers, are coming to expect. Vantiv and Socratic Technologies conducted a ShopTalk survey of 500 consumers to learn more about their relationships with financial institutions. Here are the results.
Overall, consumers are satisfied with their financial institutions
73% of respondents describe themselves as “satisfied” with their primary financial institution. In addition, 70% are likely to recommend their banking partner to others.
Consumers tend to have long-term relationships with their financial institutions
Survey respondents report an average relationship of 7.5 years with their primary financial institution. Retirees have the longest relationships, averaging over 9 years.
Personal checking accounts are the most popular banking products
92% of survey respondents report having a personal checking account with their primary financial institution.
Debit cards, savings/money market accounts, and credit cards are popular banking products
71% of survey respondents have debit cards issued by their financial institutions, 65% have savings/money market accounts, and 48% have credit cards issued by their financial institutions.
Business accounts are less popular than personal accounts
In the survey, only 9% of respondents report holding business accounts with their financial institutions. Across generations, 21% of Millennials report having business accounts. Compare this to Gen Xers at 6%, Baby Boomers at 5%, and Retirees at 1%.
One-fifth of consumers report having investment accounts with their financial institutions
Millennials are the generation most likely to have an investment account with their bank at 29%.
Convenience is a driving factor for selecting a primary financial institution
Survey respondents are driven by convenience, with 54% citing conveniently located banking branches as the reason why they selected their primary financial institution. Free services with minimal balances (such as checking accounts or electronic transfers) come in second at 40%, followed by conveniently located ATMs at 39%.
Consumers are confident in their financial institutions’ ability to handle fraud
75% of survey respondents indicate that their financial institutions are “extremely likely” to handle fraud in a way that would demonstrate wanting to keep their business.
Millennials are the age group most likely to open a new checking account in the next 12 months
Only 15% of consumers are highly likely to open a new checking account in the next 12 months. However, 37% of Millennials indicate they are extremely likely to do so.
Bank of America, credit unions, and Chase are the most popular financial institutions
Millennials gravitate toward larger banks, like Bank of America and Chase, who tend to be leading the charge in developing new banking technology.
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