AUSTIN, Texas–A new study of consumers who would not consider opening a checking account with a community bank or credit union has found Gen Z (ages 18-23) and Millennials (ages 24-38) combined (31%) are twice as likely as their Gen X (ages 39-53) and Boomer (ages 54-74) (15%) counterparts to cite lagging technology as a barrier to banking locally.
The study, commissioned by Kasasa and conducted online by The Harris Poll in December 2018, garnered responses from 2,018 U.S. adults ages 18 and older.
Among the findings:
- 21% of Americans who would not consider opening a checking account with a community bank or credit union cite inferior product offerings as a reason for not considering a local financial institution.
- 33% think megabanks are more likely than local financial institutions to offer innovative banking products.
- 40% of Americans believe that megabanks and local financial intuitions are equally as likely to offer innovative products.
An Opportunity
According to Kasasa, these findings reveal an opportunity for community financial institutions, as 75% would choose a local institution over a national megabank if they had comparable banking products.
Among the other findings:
- 85% believe local institutions can meet most of their financial needs. “This could mean that to attract more customers, local institutions must raise awareness within their communities of their offerings,” the company said.
- 83% of Americans would take action if they saw advertisements for a banking product or service that interested them.
Wearing Many Hats
“Often, community banks and credit union leaders wear many hats to tackle big goals, all with limited resources,” said Gabe Krajicek, CEO of Kasasa. “For a small, community financial institution that may only have a couple of branches, a few advertisements circulating and a few perks to offer, it’s easy to be overlooked by potential customers. However, we know that consumers want to bank locally and are fed up with big banks. Through a national brand and a collective voice, together, we can take back banking and compete against the megabanks.”