For Millennials Who Have a Primary Financial Institution, 64% Have Considered Leaving It Over the Past Year, According to NCR Survey
NCR Corporation today shared results from its recent survey conducted online by The Harris Poll. More than 2,000 U.S. adults, among whom more than 1,800 have a primary financial institution (referred to as banking customers throughout), were surveyed around their banking relationships and preferences. Key findings from the survey include: *. Nearly 2 in 5 banking customers (39%) have considered leaving their primary financial institution (FI) over the past 12 months, this jumps to 64% among millennial banking customers (ages 18-34). Financial institutions currently face an unprecedented level of competition. Although traditional institutions still benefit from trust equity, that alone won’t be enough to retain loyalty with millennials and Gen Z; these groups require intuitive digital-first experiences. It’s time to adjust operating models and business strategies to better meet customers’ needs, especially younger generations. Banks and credit unions must prioritize service offerings based on what, when and how customers want, offer connected experiences regardless of provider and deliver the personalized experience customers have become accustomed to from other brands. *. More than half of banking customers (59%) have banking relationships with more than one financial institution outside of their primary FI. Banks and credit unions no longer only compete with the institution down the block but also with nontraditional threats like neobanks, big techs and fintech providers. These emerging players are attempting to disrupt traditional banking relationships and gain deposit share, threatening institutions’ relationships with their customers. It’s more critical than ever to provide a modern, convenient customer experience with robust, innovative products and services to retain customers and market share. As customers continue to manage finances via other providers and apps, it becomes increasingly difficult for banks and credit unions to get a full picture of their customers and provide the experiences that they demand. *. 78% of Americans would rather use an FI than a tech company for personal finance management (PFM) capabilities, 73% of Americans would rather use an FI than a tech company for Buy Now, Pay Later services (BNPL). It’s become critical for banks and credit unions to have the modern architecture in place to offer new capabilities more quickly and leverage strategic partnerships more easily. Customers expect instant access to emerging capabilities and services, such as PFM tools, BNPL and embedded platform payments. Institutions that embrace cloud technology and API connectivity will be able to broaden their offerings with agility and form stickier customer relationships. *. If they had to choose, more than 3 in 5 Americans (62%) would rather use an FI over a tech company for cryptocurrency capabilities. Cryptocurrency has become mainstream, and its use cases are only expected to mature and multiply. Now is the time for institutions to determine their cryptocurrency strategies, including when and how they’ll offer it to customers. Many customers have already proven that they will seek other providers to manage their cryptocurrency. If banks and credit unions don’t act quickly, they will lose out on relationships, data and potentially massive revenue opportunities. “These survey findings really underpin the increasing urgency for banks and credit unions to embrace a digital-first mindset; that doesn’t mean digital-only, but rather digital everywhere,” explained Douglas Brown, president, Digital Banking, NCR Corporation. “Customers want to continue relying on their proven and trusted institution, but if those banks and credit unions can’t modernize their approach to customer engagement, hyper personalize interactions and quickly innovate, they risk failing to keep up with emerging competition. Now more than ever, financial institutions need to embrace modern software and services to protect and grow relationships.” Survey Method: This survey was conducted online within the United States by The Harris Poll on behalf of NCR from October 28 - November 1, 2021, among 2,035 U.S. adults ages 18 and older, among whom 1,856 have a primary financial institution. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Scott Sykes.