Survey reveals bank loyalty is more easily shaken for younger generations, Netflix-like personalization is needed among all consumers and other key generational findings
Zafin, a global banking software company making financial institutions more agile and efficient through its product and pricing solutions, announces the results of a survey exploring what U.S. consumers want from banks and evaluating generational preferences. The survey found that the resources banks offer during COVID-19 will greatly influence younger generations’ loyalty moving forward. The results also revealed that a highly personalized banking experience is crucial for both potential and existing customers across generations, with almost 90% of all respondents noting the importance of personalized banking.
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The survey was distributed to more than 1,000 American consumers and evaluated what Gen Z, millennials and those near or at retirement age expect from their banks.
Personalization
Across all generations surveyed, 88% of respondents believe it is important for their banks to provide recommendations relevant to them based upon their financial product usage and behaviors. Yet, nearly 50% of respondents said their current interactions with their bank are either not personalized at all or only slightly personalized.
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Specifically, 41% of respondents stated their current banks do not proactively offer them products, bundles, pricing and other services relevant to their financial situation, needs and goals.
Incentives are another key aspect of personalized offerings. Financial goals, such as saving for a down payment on a house or paying down student loan debt, provide great opportunities for banks to reward their customers. For millennials in particular, incentives like these play a large role in their relationship with a bank. Almost 86% of millennials said that a program offering rewards for defining and achieving financial goals would lead them to either expand their relationship with their current bank that offers this program or switch to a bank that provides such a program.
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