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Most Successful Companies Focus on Solutions
Wednesday, July 2, 2014 6:35 AM

Younger bank customers are nearly twice as likely as older customers to consider switching to a branchless bank and to consider banking with major technology players if those companies offered banking services, according to a survey of nearly 4,000 retail bank customers in the U.S. and Canada appearing in two new reports by Accenture.

The survey found that 39 percent of customers 18 to 34 years old would consider switching to a branchless bank, compared with 29 percent of customers 35 to 55, and 16 percent of customers over 55.

The survey also found that significant percentages of consumers, particularly younger ones, would be open to banking with technology players such as Google, Amazon, and Apple if the companies offered such services. Among consumers ages 18 to 34, 40 percent said they would consider banking with Google, 37 percent would consider banking with Amazon, and 34 percent would consider banking with Apple. Those percentages were 23 percent, 23 percent, and 20 percent, respectively, for respondents age 35 to 54, and dropped to 5 percent, 7 percent, and 6 percent, respectively, for respondents over 55.

According to the survey, overall 72 percent of consumers age 18 to 34 would be “likely” or “very likely” to bank with at least one technology, telecommunications, retail, or shipping/postal company that they do business with if they offered banking services. More than half (55 percent) of consumers age 35 to 54, and 27 percent of those ages 55 and older said the same.

According to the survey, younger consumers were also more likely than older consumers to want their banks to offer more services and solutions to help them with financial management and purchases. Specifically:

  • More than half of respondents age 18 to 34 (55 percent) said they would like their bank to help with the “heavy lifting” of car-buying and provide discounts in that process, compared with 45 percent of those age 35 to 55, and one-quarter (24 percent) of those over 55.
  • More than half of the younger respondents (57 percent), compared with 47 percent of those age 35 to 55, and one-quarter (24 percent) of those over 55, said they would welcome more help from their bank in the process of purchasing a home.
  • More than two-thirds of younger respondents (68 percent) expressed interest in receiving real-time analysis of their spending from their bank, including “safe-to-spend” forecasts, compared with 56 percent of those age 35 to 55, and 34 percent of those over 55. Among the younger group, two-thirds (67 percent) said such services would make them more loyal to their bank compared with 67 percent of those age 35 to 55, and 38% of those over 55.

 

(Source: Financial CMO Best Practices)