Battle of the banks research: Consumers weigh in on how to make banking amazing
Battle of the banks research: Consumers weigh in on how to make banking amazing
The Future of Banking Report is based on a September 2022 survey from Dynata, which targeted 1,000 US and 1,000 UK consumers who complete at least two banking transactions per month via smartphone app or computer, and hold accounts with more than one bank. Here’s what we found.
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The majority of consumers have already opened accounts with digital-first banks, and have a low confidence traditional institution will be able to meet their needs over the next 10 years, citing the need for transformation journeys to keep up with evolving expectations.
Findings from the research include:
- While most respondents are confident that traditional banks will keep pace with their needs over the next five years, this confidence drops to less than half when asked if traditional banks will keep pace over the next 10 years.
- Almost two-thirds reported they are likely to open accounts with digital-first banks in the next five years. According to the survey, Millennials and GenZ will lead this growth in digital-first banking.
- Majority of consumers feel digital banks have better benefits than traditional banks, noting a better app experience, improved offers, lower fees, and enhanced customer service.
- Consumers are willing to share additional personal information in exchange for improved offers. However, banks must keep data security in mind, as more than of respondents stated they would consider leaving their bank if they experienced multiple data breaches.
- Most would consider bundling their bank accounts and services if they were to receive additional benefits, such as lower fees, more rewards or points, better APR, and features including simplicity in managing multiple accounts and a more personalized experience.
- Additional lifestyle benefits, beyond rewards and cash back offerings, such as free entertainment streaming services, are appealing to consumers.
"As banks look to the future, their past often holds them back. And with that, they are fighting an uphill battle against digital-native players that can provide new offerings more quickly, improved flexibility and more. These findings should act as an eye opener for traditional financial leaders to capitalize on the value they've created over decades while also building the experiences, agility, and innovation mindset required to thrive, making the move to the cloud more critical than ever.”
