Table of Contents
Executive Summary
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- Market drivers
- The number of young people is growing
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- Figure 1: US population growth, 2009, 2014, 2019, by generation
- Growth of mobile technology ownership
- Banks are closing branches
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- Figure 2: Number of offices (including branches) of FDIC-insured savings and commercial banks, June 30, 2005-14
- Leaders
- Online-only banks
- Mobile banks
- Branch innovators
- Communication innovation
- The consumer
- The majority of consumers still use a traditional bank for their checking accounts…
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- Figure 3: Checking account ownership, by age, September 2014
- …and savings accounts
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- Figure 4: Savings account ownership, by age, September 2014
- Mobile banking apps appeal more to men than to women
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- Figure 5: Downloaded mobile app, by gender, September 2014
- Most people want more security
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- Figure 6: Interest in banking products/services, September 2014
- Innovation may win young customers
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- Figure 7: Attitudes toward banking innovations, by age, September 2014
- What we think
Issues and Implications
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- Where are the opportunities for innovation in the banking industry?
- Issues
- Implications
- How can innovation help banks ensure the relevance of branches?
- Issues
- Implications
Trend Application
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- Inspire Trend: Transumers
- Inspire Trend: Click and Connect
Market Drivers
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- Key points
- Number of young people is increasing
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- Figure 8: US population by generation, 2009, 2014, 2019
- Growth of mobile technology ownership
- Banks are closing branches
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- Figure 9: Number of offices (including branches) of FDIC-insured savings and commercial banks, June 30, 2005-14
Competitive Context
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- Key points
- Nontraditional bank options
- Online-only banks
- Capital One 360
- Ally Bank
- Mobile banks
- Simple
- Moven
- Walmart/GoBank
Customer Satisfaction with Innovation
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- Key point
- Banks are already meeting many needs
- Most people are satisfied with what their bank provides
Innovations and Innovators
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- Key points
- Mobile bill pay
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- Figure 10: US Bank mobile bill pay online ad, 2013
- Figure 11: US Bank electronic bill pay direct mail ad, 2013
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- Figure 12: US Bank mobile bill pay email ad, 2013
- Umpqua Bank’s branch design
- Checkless checking accounts
- Innovative partnership with Apple
- Apple Pay marketing
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- Figure 13: Bank of America Apple Pay email, 2014
- Figure 14: Wells Fargo Apple Pay email, 2014
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- Figure 15: Citibank Apple Pay email, 2014
- Innovations in financial literacy education
- Union Bank Yuby
- BBVA Compass
- Bank of America
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- Figure 16: Bank of America/Khan Academy television commercial
- TD Bank WOW!Zone
- Capital One
Marketing Strategies
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- Overview
- Ally Bank
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- Figure 17: Brand analysis: Ally Bank
- Online initiatives
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- Figure 18: Ally Bank Discovering Retirement video
- Figure 19: Ally Bank “Behind the Scenes with Kiplinger: Building Wealth the Old-Fashioned Way” video
- Online ads
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- Figure 20: Ally Bank savings account online ad, 2014
- Figure 21: Ally Bank online customer service ad, 2014
- Mobile
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- Figure 22: Ally Bank No Branch Mobile ad, 2014
- Direct mail
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- Figure 23: Ally Bank Raise Your Rate CD direct mail ad, 2013
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- Figure 24: Ally Bank savings account email, 2014
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- Figure 25: Ally Bank branding print ad, 2014
- Television
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- Figure 26: Ally Bank New Things television ad, 2014
- Figure 27: Ally Bank Raise Your Rate CD television ad, 2014
- Capital One 360
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- Figure 28: Brand Analysis: Capital One 360
- Online initiatives
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- Figure 29: Capital One 360 checking account video
- Figure 30: Capital One 360 “How to do Person2Person transfers” video
- Online ads
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- Figure 31: Capital One 360 Fee-Free Party Online ad, 2013
- Mobile
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- Figure 32: Capital One mobile deposit mobile ad, 2013
- Figure 33: Capital One 360 savings account mobile ad, 2013
- Direct mail
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- Figure 34: Capital One 360 checking account direct mail ad, 2013
Account Ownership
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- Key points
- Any account owned
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- Figure 35: Account ownership, any type, September 2014
- Checking account ownership
- Traditional banks still control the checking account market
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- Figure 36: Checking account ownership, by gender, September 2014
- Online-only banks are most popular nontraditional option
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- Figure 37: Checking account ownership, by age, September 2014
- Almost all with highest income use traditional banks
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- Figure 38: Checking account ownership, by household income, September 2014
- Asians are less likely than others to use a credit union
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- Figure 39: Checking account ownership, by race/Hispanic origin, September 2014
- Savings account ownership
- More people use alternatives for savings accounts
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- Figure 40: Savings account ownership, by gender, September 2014
- One quarter of 55+ use credit unions for their savings
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- Figure 41: Savings account ownership, by age, September 2014
- Credit unions and online-only banks are equally attractive to those with higher household incomes
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- Figure 42: Savings account ownership, by household income, September 2014
- Hispanics are more likely than non-Hispanics to use less traditional options for savings accounts
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- Figure 43: Savings account ownership, by race/Hispanic origin, September 2014
Type of Product Owned
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- Key points
- Men are more likely to own a variety of financial products
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- Figure 44: Type of product owned, by gender, September 2014
- Owning financial products competes with other priorities
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- Figure 45: Type of product owned, by age, September 2014
Mobile App Downloaded
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- Key points
- Men use mobile banking apps far more than do women
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- Figure 46: Downloaded mobile app, by gender, September 2014
- Millennials are much more likely to have mobile banking apps on phones than on tablets
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- Figure 47: Downloaded mobile app, by generation, September 2014
- Use of mobile phone apps decreases after household income reaches $100K
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- Figure 48: Downloaded mobile app, by household income, September 2014
Interest in Banking Products and Services
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- Key points
- Security is of most concern
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- Figure 49: Interest in banking products/services, September 2014
- Already use
- Men use more services than women
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- Figure 50: Interest in banking products/services – Already use, by gender, September 2014
- Millennials are the target market
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- Figure 51: Interest in banking products/services – Already use, by age, September 2014
- Higher-income households use more features
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- Figure 52: Interest in banking products/services – Already use, by household income, September 2014
- Don’t use but would be interested in using
- Men want it to be easier to connect with their bank
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- Figure 53: Interest in banking products/services – Don’t use but would be interested in using, by gender, September 2014
- There is more opportunity among younger consumers
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- Figure 54: Interest in banking products/services – Don’t use but would be interested in using, by age, September 2014
- Interest in new features
- Interest is highest among those with checking accounts at alternative banks
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- Figure 55: Interest in banking products/services – Any interested, by checking account ownership, September 2014
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- Figure 56: Interest in banking products/services – Any interested, by checking account ownership, September 2014
- The pattern is similar for savings accounts
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- Figure 57: Interest in banking products/services – Any interested, by savings account ownership, September 2014
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- Figure 58: Interest in banking products/services – Any interested, by savings account ownership, September 2014
- Qualitative interest
- Responses about security-based innovations (A and C):
- Responses about advanced banking activities (B):
- Responses about using branch-based technology (D):
Attitudes toward Banking Innovations
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- Key points
- Half do most banking online
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- Figure 59: Attitudes toward banking innovations, by gender, September 2014
- Innovation may win young customers
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- Figure 60: Attitudes toward banking innovations, by age, September 2014
Comfort Using New Products and Services
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- Key points
- Women may need to try new features before they are comfortable
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- Figure 61: How comfortable using new products/services – Any comfortable, by gender, September 2014
- Millennials are most comfortable with advanced ATMs
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- Figure 62: How comfortable using new products/services – Any comfortable, by age, September 2014
Appendix – Other Useful Consumer Tables
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- Checking account ownership
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- Figure 63: Checking account ownership, by generations, September 2014
- Savings account ownership
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- Figure 64: Savings account ownership, by generations, September 2014
- Type of product owned
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- Figure 65: Type of product owned, by household income, September 2014
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- Figure 66: Type of product owned, by race/Hispanic origin, September 2014
- Mobile app downloaded
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- Figure 67: Downloaded mobile app, by age, September 2014
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- Figure 68: Downloaded mobile app, by gender and age, September 2014
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- Figure 69: Downloaded mobile app, by race/Hispanic origin, September 2014
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- Figure 70: Downloaded mobile app, by household size, September 2014
- Interest in banking products and services
- Any interest
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- Figure 71: Interest in banking products/services – Any interested, by gender, September 2014
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- Figure 72: Interest in banking products/services – Any interested, by age, September 2014
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- Figure 73: Interest in banking products/services – Any interested, by gender and age, September 2014
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- Figure 74: Interest in banking products/services – Any interested, by household income, September 2014
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- Figure 75: Interest in banking products/services – Any interested, by race/Hispanic origin, September 2014
- Already use
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- Figure 76: Interest in banking products/services – Already use, by race/Hispanic origin, September 2014
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- Figure 77: Interest in banking products/services – Already use, by generations, September 2014
- Don’t use but would be interested in using
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- Figure 78: Interest in banking products/services – Don’t use but would be interested in using, by household income, September 2014
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- Figure 79: Interest in banking products/services – Don’t use but would be interested in using, by generations, September 2014
- Attitude toward banking innovation
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- Figure 80: Attitudes toward banking innovations, by household income, September 2014
- How comfortable using new products and services
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- Figure 81: How comfortable using new products/services – Any comfortable, by household income, September 2014
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- Figure 82: How comfortable using new products/services – Any comfortable, by race/Hispanic origin, September 2014
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- Figure 83: How comfortable using new products/services – Any comfortable, by household size, September 2014
Appendix – Trade Associations
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