Survey of 1,000 U.S. adults shows mobile banking application as most important factor when choosing a financial provider; However, top reason to close an account is bad customer service
MX Technologies, released its latest consumer research report that shines a light on how consumers think about primary financial relationships and what factors they consider when selecting a financial services provider. MX’s survey of more than 1,000 American adults revealed that 77% of consumers believe individuals can have more than one primary financial relationship. This is reflected in the rate of new account openings and how consumers define primacy. Only 38% of consumers define a primary financial relationship as where they direct deposit their paycheck.
“Today’s attitude towards banks is one of convenience, speed, and personalization. Consumers no longer stick with a handful of providers to meet their financial needs. Instead, consumers are opening new financial accounts more and more often to find the tools, insights, and services they need to better manage their money,” shares Jane Barratt, Chief Advocacy Officer and Head of Global Public Policy, MX. “As an industry, we have an opportunity and responsibility to meet consumers where they are and enable them to streamline their fragmented financial lives.”
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Other top findings include:
Mobile banking applications will attract consumers, but likely will not retain them. When asked what’s most important in choosing a financial provider, mobile banking apps top the list (23%). However, of the more than half of consumers who have closed a financial account, less than 5% did so because they were unhappy with the mobile experience. Instead, the top reasons for leaving are bad customer service (21%), no convenient locations (18%), better rates (17%), lower fees (13%), and impersonal experiences (11%).
Consumers expect financial providers to help improve their financial health. Half of consumers believe financial providers have a responsibility to teach them to be financially strong. And, 59% want their financial provider to proactively help them better manage their finances. The topics they’d most like to receive additional education or support are: investing (40%), paying off debt (33%), and creating and managing a budget (33%).
Many consumers do not even track their finances. The survey results indicate that 40% of consumers only check their finances through their financial accounts. Only 21% use a budgeting tool or app while 20% use a spreadsheet or other manual process. And, 15% of consumers say they don’t track their finances, up from less than 10% just six months ago.
Account aggregation remains a significant opportunity to grow engagement and retain customers. Less than half of consumers (44%) said they have used digital tools to bring different financial accounts into one view. When asked why, nearly 1 in 5 (17%) said it is because they do not know how to do it or they are concerned about sharing financial information.
Consumers are willing to exchange their financial data for a better experience. More than half of U.S. consumers surveyed (54%) expect their financial provider to know them and most (54%) want financial providers to leverage their data to personalize their experience. And, 48% would give their financial provider access to more of their data if they knew it would result in a better experience.
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