CHICAGO—More than half of consumers in a new survey said they searched for a new financial institution or new account in the past 12 months, while 28% indicated they have opened an account at an online provider, according to new research.
Another quarter said they are considering switching.
Those findings were released as part of the 2018 BAI Banking Outlook research study, which probes for trends in marketing and customer acquisition. The quarterly research included more than 650 consumers and financial services leaders from organizations ranging in size from community banks to large mega banks.
BAI said its researchers surveyed consumers to understand what marketing efforts and product offerings compel them to choose a bank.
“The research also measures behavior, attitude and outlook in relation to how these consumers view their bank, prefer to interact with the bank and view their current and future banking relationships,” BAI said. “The results offer a compare-and-contrast view between the consumer and bank.”
The Findings
Among the highlights of the latest research:
- More than half of respondents searched for a new bank or new account in the past 12 months, and more than 28% indicated opening an account at an online bank. However, 49% of respondents opened a new account at their main bank, BAI said.
- Only 40% of respondents stated they will not change main banks over the next year, while nearly a quarter are considering switching and over one-third are unsure.
- While BAI noted consumers increasingly prefer digital interaction, 37% of respondents visited a branch to discuss their specific needs and more than half (56%) opened a checking account in the branch.
- Convenient branch locations (35%), cash incentives or rewards (32%) and product offerings or attractive rates (30%) are the top reasons why a consumer would change banks, BAI reported.
- 60% of consumers stated that they would open a loan or investment account and 66% of consumers said they would open a deposit account online or through a mobile device. But, the majority of bank respondents (52%) do not allow a customer’s first account to be opened digitally.
Understanding Consumer Perspectives
“Marketing and customer acquisition are priorities for most financial services organizations, which is why BAI placed heightened importance on understanding the perspectives from consumers who have opened a new account in the past year,” said Karl Dahlgren, managing director of BAI. “This type of data is crucial for financial services leaders to understand as they seek to acquire new customers in this highly competitive industry.
“For example, our survey found that while a growing percent of account openings occur without visiting a branch, face-to-face selling and interaction continues to prove effective and is even more so when combined with digital marketing experiences,” Dahlgren continued.