Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Consumer study data
- Comperemedia
- Abbreviations
- Terms
- Companies mentioned in this report
Executive Summary
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- The market
- The number of banks continues to fall
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- Figure 1: Number of FDIC-insured commercial banks and savings institutions, year- end, 2002-11
- Total assets and deposits show strong growth in the past decade
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- Figure 2: Total assets of all banks, Q2 2007-Q2 2012
- The top four banks dominate the industry
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- Figure 3: Assets of four largest banks, Q2 2012
- The industry is strengthening
- Where people bank
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- Figure 4: Type of financial institution for primary banking relationship, all respondents, May 2012
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- Figure 5: Type of financial institution for banking relationship, by race/Hispanic origin, May 2012
- Switching behavior is consistent across income groups
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- Figure 6: Switching behavior and incidence of multiple accounts, by household income, May 2012
- Fees are now the main reason people switch
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- Figure 7: Top reasons for switching banks, respondents who have switched in last three years, all respondents, any agree, May 2012
- Customers leave because of fees, but branch location is important
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- Figure 8: Attitudes about banks and banking products and services, all respondents, any agree, May 2012
- Blacks and Hispanics most want comprehensive services
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- Figure 9: Attitudes about banks and banking products and services, by race/Hispanic origin, any agree, May 2012
- The desirability of bank advisory services
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- Figure 10: Attitudes about bank advisory services, all respondents, any agree, May 2012
- Online financial tools
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- Figure 11: Usage of web-based financial management tools, by household income, May 2012
- Cluster analysis: Dissatisfied Bankers
- Opportunity
- Banks rethinking branch model
- Incentives are key to marketing strategies
- The bank of the future
- What we think
Issues in the Market
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- Pressures on the retail banking industry
- Opportunities exist
- Technology—and its management—are key
- Customer-centrism is increasingly important
Insights and Opportunities
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- Key points
- Conquering Big Data will increase profitability
- Mobile banking has room for growth
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- Figure 12: Banking activities conducted on mobile phone in last year, mobile phone owners, November 2011
- More banks getting into prepaid card market
- Branch self-service will help differentiate banks
- Rethinking branch design
- Online tools and financial advice
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- Figure 13: Usage of web-based financial management tools, by age, May 2012
Trend Applications
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- Trend: Extend My Brand
- Industry application
- Trend: Boomerang Generation
- Industry application
- 2015 Trend—Access Anything
- Industry implications
Market Size
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- Key points
- The number of banks continues to fall
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- Figure 14: Number of FDIC-insured commercial banks and savings institutions, year- end, 2002-11
- Figure 15: Assets of FDIC-insured commercial banks and savings institutions, year- end, 2002-11
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- Figure 16: Deposits held by FDIC-insured commercial banks and savings institutions, year-end, 2002-11
- Credit unions are becoming more popular
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- Figure 17: Growth in number, membership, and assets of credit unions, 2002-11
Competitive Context
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- Key points
- Big banks are dominating the industry more than ever
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- Figure 18: Asset market share of financial institutions, 1992, 2011
- Figure 19: Assets of four largest banks, as of end of Q2 2012
- Credit unions are getting big, but banks are still bigger
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- Figure 20: Credit union membership growth, 2002-11
- Figure 21: Credit union deposit growth, June 2008-June 2012
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- Figure 22: Credit union asset growth trend, June 2008-June 2012
- Branchless banks: wave of the future?
- Big banks extending less credit and regional banks are stepping in
Segment Performance
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- Key points
- Industry continues to show strength
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- Figure 23: Net income and assets of all FDIC institutions, Q2 2007-Q2 2012
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- Figure 24: Net income of top U.S. banks by deposits, Q2 2012 VS. Q2 2011
- Figure 25: Net income of top 10 U.S. banks by deposits, 2007-11
- Mortgages are helping lift the industry
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- Figure 26: Mortgage origination estimates, Q1 2011-Q2 2012
- Bank failures continue, but fewer banks on Problem List
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- Figure 27: Number of bank failures, 2004-12 (all as of June 30)
- Figure 28: Number of banks on FDIC Problem List, 2004-12
- Durbin regulations hampering revenue at the biggest banks
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- Figure 29: change in interchange revenues for top public U.S. bank holding companies, Q4 2010-Q4 2011
Marketing Channels
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- Key points
- Banks doing more with email, less with direct mail
- Mobile banking is mentioned more often than ever
- Other channels
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- Figure 30: Attitudes about banks and bank communications, by age, any agree, May 2012
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- Figure 31: Attitudes about banks and bank communications, by household income, May 2012
- Figure 32: Attitudes about banks and bank communications, by race/Hispanic origin, May 2012
- Retail banks becoming more active in social media
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- Figure 33: Percentage of users in each demographic group who use social networking sites, Jan.-Feb., 2012
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- Figure 34: Attitudes about banks and social media, by age, May 2012
- The marketing mix continues to change
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- Figure 35: Importance of channel in 2012, bank executive survey, January 2012
- Customers using branches less, self-service more
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- Figure 36: Percentage of respondents who prefer to use a branch teller for transactions, 2006, 2011, 2012
- Branches are still important
Market Drivers
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- Key points
- Economic growth slower than expected
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- Figure 37: Quarter-to-quarter change in gross domestic product, Q1 2010-Q2 2012
- Figure 38: U.S. Unemployment rate, June 2009-December 2012
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- Figure 39: Quarter-to-quarter change in total consumer spending, Q1 2010-Q2 2012
- New regulations continue to change the way banks do business
- Growth in smartphone ownership
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- Figure 40: U.S. mobile phone unit sales, by segment, 2006-12
- Figure 41: Smartphone ownership among American adults, May 2011- February 2012
- Home sales are rising and more people need mortgages
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- Figure 42: Sales of new and existing homes, July 2011-July 2012
- Refinance application volumes are at historic highs
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- Figure 43: Refinance application volume as a percentage of total mortgage application volume, December 2003–December 2011
- Figure 44: Conventional conforming 30-year fixed-rate mortgage rates, annual average, 1978–2011
- Increased fees are impacting customer loyalty
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- Figure 45: Reasons for switching banks for respondents who switched in last three years, May 2012
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- Figure 46: Average fees for banking services, Year-end 2011-Midyear 2012
Leading Companies
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- Key points
- JPMorgan Chase largest bank by assets
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- Figure 47: Top 10 largest banks, by assets (Dec. 31, 2010; Dec. 31, 2011; June 30, 2012)
- JPMorgan Chase overtakes Bank of America in deposits
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- Figure 48: Top 10 U.S. commercial banks by deposits as of March 31, 2012
- Navy Federal Credit Union is the largest in deposits
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- Figure 49: Top 10 credit unions by deposits as of June 30, 2012
- JPMorgan Chase
- Bank of America
- Wells Fargo
- Citigroup
- U.S. Bank
- PNC Bank
- TD Bank
- SunTrust Bank
- Capital One
- Navy Federal Credit Union
Brand Qualities
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- Key points
- Banks still trying to rebuild reputations
- Convenience is a factor
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- Figure 50: Chase direct mail advertisement, August 2012
- Banks increasingly want to be seen as environmentally friendly
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- Figure 51: Capital One email advertisement, 2012
Innovation and Innovators
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- Key points
- C1 Bank
- State Farm Bank
- Citibank
- Kasasa
- Simple
- Innovations in branch design
- Acru
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- Figure 52: Interior of Acru Bank branch, July 2012
- State Farm Bank
Marketing Strategies
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- Key points
- Banks are increasing marketing focus on less traditional products
- Mobile banking is front and center
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- Figure 53: ING email advertisement, April 2012
- Incentives are increasingly rich
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- Figure 54: Chase direct mail advertisement, March 2012
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- Figure 55: ING email advertisement, May 2012
- Figure 56: Capital One direct mail advertisement, June 2012
- Print advertising
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- Figure 57: PNC print advertisement, August 2012
- Figure 58: TD Bank print advertisement, 2012
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- Figure 59: Popular Community Bank print advertisement, August 2012
- Direct mail advertising
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- Figure 60: Harris Bank direct mail advertisement, September 2012
- Figure 61: Capital One direct mail advertisement, September 2012
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- Figure 62: KeyBank direct mail advertisement, May 2012
- Figure 63: Community Choice Credit Union direct mail advertisement, 2012
- Online and email advertising
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- Figure 64: Bank of America Email advertisement, May 2012
- Figure 65: AARP MasterCard Email advertisement, August 2012
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- Figure 66: Bank of America online advertisement, August 2012
- Figure 67: Wells Fargo email advertisement, August 2012
- Television and other advertising
- Chase Bank
- Ally Bank
- Capital One
- Wells Fargo
- Bank of America
The Consumer—Type of Institution Preferred
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- Key points
- Almost half bank at large banks
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- Figure 68: Type of financial institution for banking relationship, by gender, May 2012
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- Figure 69: Type of financial institution for banking relationship, by age, May 2012
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- Figure 70: Type of financial institution for banking relationship, by gender and age, May 2012
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- Figure 71: Type of financial institution for banking relationship, by household income, May 2012
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- Figure 72: Type of financial institution for banking relationship, by race/Hispanic origin, May 2012
Banking-related Behaviors
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- Key point
- Switching behavior and multiple accounts
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- Figure 73: Switching behavior and incidence of multiple accounts, by age, May 2012
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- Figure 74: Switching behavior and incidence of multiple accounts, by household income, May 2012
- Figure 75: Switching behavior, incidence of multiple accounts, and usage of advisory services, by race/Hispanic origin, May 2012
Reasons for Switching Banks
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- Key points
- Fee sensitivity has increased
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- Figure 76: Reasons for switching banks, by gender, May 2012
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- Figure 77: Reasons for switching banks, by age, May 2012
Online Financial Tools
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- Key points
- Use of web-based financial management tools
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- Figure 78: Usage of web-based financial management tools, by gender, May 2012
- Figure 79: Usage of web-based financial management tools, by age, May 2012
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- Figure 80: Usage of web-based financial management tools, by household income, May 2012
- Figure 81: Usage of web-based financial management tools, by race/Hispanic origin, May 2012
- Reasons for using web-based financial management tools
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- Figure 82: Reasons for using web-based financial management tools, by age, May 2012
- Figure 83: Reasons for using web-based financial management tools, by household income, May 2012
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- Figure 84: Reasons for using web-based financial management tools, by race/Hispanic origin, May 2012
Attitudes toward Banking Products and Services
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- Key points
- Customers still think a convenient branch is important
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- Figure 85: Attitudes about banks and banking products and services, by gender, any agree, May 2012
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- Figure 86: Attitudes about banks and banking products and services, by age, any agree, May 2012
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- Figure 87: Attitudes about banks and banking products and services, by household income, any agree, May 2012
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- Figure 88: Attitudes about banks and banking products and services, by race/Hispanic origin, any agree, May 2012
Attitudes about Advisory Services
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- Key points
- Banks and bank communications
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- Figure 89: Attitudes about bank advisory services, by gender, any agree, May 2012
- Figure 90: Attitudes about bank advisory services, by age, any agree, May 2012
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- Figure 91: Attitudes about bank advisory services, by household income, any agree, May 2012
- Figure 92: Attitudes about bank advisory services, by race/Hispanic origin, any agree, May 2012
- Usage of advisory services
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- Figure 93: Actual usage of advisory services, by age, May 2012
- Figure 94: Actual usage of advisory services, by household income, May 2012
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- Figure 95: Actual usage of advisory services, by race/Hispanic origin, May 2012
Cluster Analysis
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- Young Switchers
- Demographics
- Characteristics
- Opportunity
- Dissatisfied Bankers
- Demographics
- Characteristics
- Opportunity
- Bank Loyalists
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic tables
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- Figure 96: Retail Bank clusters, May 2012
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- Figure 97: Type of financial institution for banking relationship, by target clusters, May 2012
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- Figure 98: Behaviors relating to bank products and services, by target clusters, May 2012
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- Figure 99: Reasons for switching banks, by target clusters, May 2012
- Figure 100: Usage of web-based financial management tools, by target clusters, May 2012
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- Figure 101: Reasons for using web-based financial management tools, by target clusters, May 2012
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- Figure 102: Attitudes about banks and banking products and services, by target clusters, any agree, May 2012
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- Figure 103: Attitudes about bank advisory services, by target clusters, any agree, May 2012
- Cluster demographic tables
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- Figure 104: Target clusters, by demographics, May 2012
- Cluster methodology
Appendix—Trade Associations
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