Table of Contents
Executive Summary
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- Market overview
- Key Findings
- Deposits draw the most love
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- Figure 1: Loyalty to primary financial services provider, by product, October 2019
- What do consumers want in exchange for their loyalty? Security, and a brand they can trust.
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- Figure 2: Importance of trust and security on loyalty, October 2019
- The shadow of the 2008 financial crisis still hangs, as new worries build
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- Figure 3: Attitudes regarding recessions, government, financial industry, by generation, October 2019
- Counterpoint: does brand loyalty exist anymore?
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- Figure 4: General attitudes regarding brand loyalty, October 2019
- What it means, and what’s next
The Market – What You Need to Know
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- Consumers can only be loyal to those products which they own
- Financial brands will have to target an increasingly diverse customer base
The Market for Financial Loyalty
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- Product ownership precedes loyalty
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- Figure 5: Financial product ownership rates, October 2019
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- Figure 6: Select financial product ownership rates, by age, October 2019
- Diversity is the way of the future
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- Figure 7: Generation composition, race and Hispanic origin, 2018
Key Players – What You Need to Know
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- What consumers think is working
- What consumers think is struggling
- What consumers want
What’s Working
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- Consumers in their own words
- Ally Bank’s Happy Banksgiving Campaign
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- Figure 8: Ally Bank, Happy Banksgiving emails, November 2019
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- Figure 9: Ally Bank, Happy Banksgiving 2019, November 20, 2019
- Credit Karma’s holistic, incremental approach to financial wellness
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- Figure 10: Credit Karma, savings account announcement, October 2019
- Figure 11: Credit Karma, credit score decrease email alert, October 2019
- Figure 12: Credit Karma, credit score increase email alert, October 2019
What’s Struggling
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- Consumers in their own words
- For many, brand loyalty is a specter of times past
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- Figure 13: General attitudes regarding brand loyalty, October 2019
- Challenger brands have some hiccups
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- Figure 14: Chime, twitter response to outage, October 17, 2019
What’s Next
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- What consumers want
- Consumers are evenly split on the necessity of in-branch banking
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- Figure 15: Necessity of in-branch banking, by generation, November 2018
- ESG initiatives are big money, but are they a big façade?
- Business Roundtable redefines purpose of a corporation
- Corporate responsibility in lieu of a legislative solution?
- Immigrants wish banks had more of their data
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- Figure 16: Nova Credit & American Express, Credit Passport, December 2019
The Consumer – What You Need to Know
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- Loyalty follows the money
- A third of consumers have switched financial providers in the past year
- What do consumers want? Security, quality, value
- Want to poach a loyal customer? Most say they would need $1K
- Recessions, past and future, still worry consumers
Loyalty by Product Type
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- People are most loyal to their deposit accounts
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- Figure 17: Loyalty to primary financial services provider, by product, October 2019
- Card issuers should play the long game: seniors are the most loyal
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- Figure 18: Loyalty to primary credit card, by age, October 2019
- Less loyalty lent to lenders and insurers
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- Figure 19: Loyalty to primary financial services provider, by product, October 2019
Switching Accounts
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- A third of consumers switched a financial account last year
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- Figure 20: Switching behavior, by financial product type, October 2019
- Youngest consumers are switching the most
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- Figure 21: Switching behavior, select financial products, by age, October 2019
- What would it take to switch? About $1k
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- Figure 22: Cost to change most loyal financial relationship, October 2019
Important Loyalty Factors
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- Security tops the list
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- Figure 23: Most important factors in choosing a financial provider, October 2019
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- Figure 24: Citi, informational email, mobile app security features, June 2019
- Price vs. Value: an age game
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- Figure 25: Importance of price and value on loyalty, by age, October 2019
- Customer service still matters more than a digital presence
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- Figure 26: Importance of customer service vs digital presence, by generation, October 2019
Attitudes toward Loyalty
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- Trust and security are paramount
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- Figure 27: Importance of trust and security on loyalty, October 2019
- 2008 recession remains an issue
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- Figure 28: Attitudes regarding recessions, government, financial industry, by generation, October 2019
- Hispanic consumers may be more loyal
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- Figure 29: Loyalty toward primary bank vs finance industry, by Hispanic origin, October 2019
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- Figure 30: Wells Fargo, Spanish language online advertisement, December 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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