Digital Banking Report Provides Insight Into Considerations Important to Banking Customers When Weighing Decision to Potentially Switch Banks
Mobiquity, a digital consultancy that designs and delivers compelling digital products and services for the world’s leading brands, released today results of a new Digital Banking Report. The new report highlights how digital tools employed by banks can engender loyalty among existing customers but also play a key role in compelling customers from competitors to switch banking providers. This opportunity is strongest among younger people who have higher expectations around digital banking experiences and are more likely to consider switching banks if those expectations are not met. Mobiquity surveyed nearly 2,500 banking customers 18 years of age or older in the U.S. to gain insight into their current banking habits, how they predict these habits will change in the future and what might influence those changes.
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According to Mobiquity’s findings, 46% of those under 55 years old indicated that they would switch banks to get better digital features compared to only 27% of those 55 and older. Similarly, reading positive reviews about a digital bank had a higher impact (54%) on those under 55 years old in considering switching banks, compared to 32% of those 55 and older. Overall, the 25-39 age demographic was the most likely to consider switching banks in the next 12 months, at 32% for checking, 30% for savings, 33% for investment and 35% for mortgage.
“The pandemic forced rapid digital adoption and transformation across the globe and the banking industry is no different,” said Matt Williamson, Vice President of Global Financial Services at Mobiquity. “While it was unsurprising that older generations are less likely to switch banks due to digital features, our Digital Banking Report revealed specific areas of opportunity for banks to adjust their digital strategy to best serve a younger generation who will increasingly be making key life decisions about mortgages and investment accounts in the near future. It’s vital for banks to plan ahead understanding the expectations that future generations of customers will bring to the marketplace.”
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The survey also revealed that older banking customers still value the in-person banking experience. Twenty-eight percent of those 55 and older listed a better in-person experience as one of the top three things most likely to cause a switch in banks in the future for any type of account whereas only 17% of those under 55 listed the in-person experience among their top three. However, older banking customers also worry about the shift to digital. Forty-one percent of those 55 and older agreed that they worry banks are pushing them away from in-person banking. This provides an opportunity to continue educating older generations of banking customers as institutions expand their digital banking offerings.
Additional findings of Mobiquity’s Digital Banking Report include:
- Overall, customers switch accounts rarely, with 11-17% of current customers (depending on account type) having made a switch in the past year. Still, 40% agree they are likely to switch accounts to get better digital tools and 37% agree they are more likely to switch than they were in the past.
- Forty-eight percent agree that switching banks is easier than it used to be, however younger generations find switching banks to be easier than their older counterparts.
- Customers are more likely to consider switching their mortgage than other types of accounts. 17% of respondents said they switched mortgage accounts within the past 12 months.
