Loyalty in Financial Services - US - December 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Market overview
Key Findings
Deposits draw the most love
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.
Figure 2: Importance of trust and security on loyalty, October 2019
The shadow of the 2008 financial crisis still hangs, as new worries build
Figure 3: Attitudes regarding recessions, government, financial industry, by generation, October 2019
Counterpoint: does brand loyalty exist anymore?
Figure 4: General attitudes regarding brand loyalty, October 2019
What it means, and what’s next
THE MARKET – WHAT YOU NEED TO KNOW
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
Product ownership precedes loyalty
Figure 5: Financial product ownership rates, October 2019
Figure 6: Select financial product ownership rates, by age, October 2019
Diversity is the way of the future
Figure 7: Generation composition, race and Hispanic origin, 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW 
What consumers think is working
What consumers think is struggling
What consumers want
WHAT’S WORKING
Consumers in their own words
Ally Bank’s Happy Banksgiving Campaign
Figure 8: Ally Bank, Happy Banksgiving emails, November 2019
Figure 9: Ally Bank, Happy Banksgiving 2019, November 20, 2019
Credit Karma’s holistic, incremental approach to financial wellness
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
Consumers in their own words
For many, brand loyalty is a specter of times past
Figure 13: General attitudes regarding brand loyalty, October 2019
Challenger brands have some hiccups
Figure 14: Chime, twitter response to outage, October 17, 2019
WHAT’S NEXT
What consumers want
Consumers are evenly split on the necessity of in-branch banking
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
Figure 16: Nova Credit & American Express, Credit Passport, December 2019
THE CONSUMER – WHAT YOU NEED TO KNOW 
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
People are most loyal to their deposit accounts
Figure 17: Loyalty to primary financial services provider, by product, October 2019
Card issuers should play the long game: seniors are the most loyal
Figure 18: Loyalty to primary credit card, by age, October 2019
Less loyalty lent to lenders and insurers
Figure 19: Loyalty to primary financial services provider, by product, October 2019
SWITCHING ACCOUNTS
A third of consumers switched a financial account last year
Figure 20: Switching behavior, by financial product type, October 2019
Youngest consumers are switching the most
Figure 21: Switching behavior, select financial products, by age, October 2019
What would it take to switch? About $1k
Figure 22: Cost to change most loyal financial relationship, October 2019
IMPORTANT LOYALTY FACTORS
Security tops the list
Figure 23: Most important factors in choosing a financial provider, October 2019
Figure 24: Citi, informational email, mobile app security features, June 2019
Price vs. Value: an age game
Figure 25: Importance of price and value on loyalty, by age, October 2019
Customer service still matters more than a digital presence
Figure 26: Importance of customer service vs digital presence, by generation, October 2019
ATTITUDES TOWARD LOYALTY
Trust and security are paramount
Figure 27: Importance of trust and security on loyalty, October 2019
2008 recession remains an issue
Figure 28: Attitudes regarding recessions, government, financial industry, by generation, October 2019
Hispanic consumers may be more loyal
Figure 29: Loyalty toward primary bank vs finance industry, by Hispanic origin, October 2019
Figure 30: Wells Fargo, Spanish language online advertisement, December 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms