Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on the banking experience
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on the banking experience, March 2021
- Opportunities and challenges
- Banks will need to step up investment offerings to keep additional deposits
- FSIs need to attract younger consumers to retain loyalty
- Banks must build a bridge between satisfaction and value
The Market – Key Takeaways
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- Total number of banks has declined for the past decade
- Personal savings rate remains high and will spike due to US stimulus
- Majority of US adults have at least one financial account
- National banks remain the most popular
Market Size
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- Total number of banks has declined for the past decade
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- Figure 2: Total number of US insured commercial banks, 2008-19
- Chase, Bank of America remain banks with highest US assets
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- Figure 3: Insured US-chartered commercial banks that have consolidated assets of $300 million or more, 2020
- Total number of branches continues to fall
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- Figure 4: Total number of US insured commercial bank branches, 2008-19
- US assets for domestically chartered banks grew by 23% in 2020
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- Figure 5: Deposits, large domestically chartered commercial banks, January 2008-January 2021
- Figure 6: Deposits, large domestically chartered commercial banks, January 2019-January 2021
- Impact of COVID-19 on the banking experience
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- Figure 7: Short-, medium- and long-term impact of COVID-19 on the banking experience, March 2021
- Lockdown
- Reemergence
- Recovery
- COVID-19: US context
Market Factors
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- Unemployment continues a slow decline
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- Figure 8: Unemployment and underemployment, January 2008-January 2021
- GDP continues with strong recovery into 2021
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- Figure 9: GDP change from previous period, Q1 2008-Q4 2020
- Personal savings rate remains high and will increase with second stimulus
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- Figure 10: Personal savings rate, January 2008-February 2021
- DPI comes down from April 2020 peak but remains high year over year
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- Figure 11: Disposable personal income change from previous period, January 2008-February 2021
Ownership of Financial Accounts
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- Majority of US adults have at least one financial account
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- Figure 12: Ownership of financial accounts, by gender and age, November 2020
- Older adults more likely to have mortgage, younger have auto and student loans
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- Figure 13: Ownership of loan accounts, by gender and age, November 2020
Usage of Financial Institutions in the Past Year
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- National banks remain most popular financial institutions
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- Figure 14: Usage of financial institutions in the past year, November 2020
- Age, household income not significant factors in usage of financial institutions
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- Figure 15: Usage of financial institutions in the past year, by generation and household income, November 2020
COVID-19’s Effect on Banking Activities
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- COVID-19 increased digital and mobile adoption for banking activities
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- Figure 16: Changes in banking due to COVID-19, November 2020
- Oldest consumers are not changing their banking behaviors
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- Figure 17: Changes in banking due to COVID-19, by gender and age, November 2020
Companies and Brands – Key Takeaways
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- Consumer banking behavior will be driven by Identity, Technology, Rights and Wellbeing
- Comperemedia’s top trends focus on concern for COVID-19, coupled with increased technology adoption
- Banks look to adapt to a changing culture in order to keep moving ahead to the future
Trends in Banking
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- Consumer banking behavior will be driven by Identity, Technology, Rights and Wellbeing
- Identity
- Technology
- Rights
- Wellbeing
- Comperemedia’s top trends focus on concern for COVID-19, coupled with increased technology adoption
- Viral vigilance
- Accelerated adoption
- Preparing and planning
- Riding out the recession
Competitive Strategies
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- Celebrate the “end” of a lending relationship to renew customer loyalty
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- Figure 18: Ally Financial, auto loan email, December 2020
- Fintechs keep up their fight to compete with big banks
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- Figure 19: Stash homepage as of March 2021
- Figure 20: Monzo homepage as of March 2021
- Figure 21: Plaid homepage as of March 2021
- Citibank’s culturally driven change allows for a “chosen” name
- Greenwood’s equitable mission for Black and Latinx communities
The Consumer – Key Takeaways
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- Most adults have at least two accounts
- Nearly 40% of adults have had their bank account over 16 years
- Cash is bringing customers into bank branches
- Switching banks is a hassle, but incentives are tempting
Total Number of Bank Accounts
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- Most adults have at least two accounts
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- Figure 22: Total number of bank accounts, November 2020
- 35-44s, 55+ most likely to have multiple accounts
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- Figure 23: Total number of bank accounts, by age, November 2020
- Regardless of age, men are more likely to diversify their bank accounts
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- Figure 24: Total number of bank accounts, by age and gender, November 2020
- Emerging affluent and affluent adults more likely to have 2-5 accounts
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- Figure 25: Total number of bank accounts, by household income, November 2020
Length of Bank Account Ownership
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- Nearly 40% of adults have had their bank account over 16 years
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- Figure 26: Length of ownership – Primary bank account, November 2020
- FSIs need to catch the eye of young consumers to retain loyalty
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- Figure 27: Length of ownership – Primary bank account, by age, November 2020
- Urban adults are “younger” account holders
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- Figure 28: Length of ownership – Primary bank account, by geographic location, November 2020
Reasons to Visit a Bank Branch
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- Cash is bringing customers into bank branches
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- Figure 29: Reasons to visit a bank branch, November 2020
- Younger, mainly male, consumers are using bank’s advisory services
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- Figure 30: Reasons to visit a bank branch, by age and gender and generation, November 2020
- Gen Z adults look to avoid digital channels, while Gen Xers avoid the branch
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- Figure 31: Reasons to visit a bank branch, by generation, November 2020
Reasons to Switch Banks
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- Fees continue to be top reason to switch, followed by customer service
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- Figure 32: Reasons to switch banks, November 2020
- Recommendations, lifestage are more important to younger audiences
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- Figure 33: Reasons to switch banks, by age, November 2020
- Millennials could be incentivized to switch
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- Figure 34: Reasons to switch banks, by generation, November 2020
Attitudes toward Banks
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- Satisfaction with bank is higher than feeling valued
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- Figure 35: Satisfaction, likelihood to recommend bank, November 2020
- Switching banks is a hassle, but incentives are tempting
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- Figure 36: Hassles of switching, interest in incentives, by age, November 2020
- Branches are still a necessity, regardless of geography
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- Figure 37: Necessity of in-branch banking, by geographical region, November 2020
- Technology companies won’t overtake the banking industry (yet)
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- Figure 38: History versus technology, by age and gender, November 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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