Study: 28% of financial services consumers are considering a switch

Photo Credit: Blossomstar | Freepik

According to a recent study by Yes Marketing, younger consumers are less loyal to their financial services provider than older generations.

In fact, more than a fourth of financial services consumers (28%) said that they are considering switching to a new financial services company.

In its “Inside the Lifecycle of the Financial Services Consumer” report, Yes Marketing surveyed over 1,000  consumers on their experiences with financial services companies and found that younger consumers are more likely to consider leaving their current financial services provider compared to their older counterparts. 

Some other key findings for the whitepaper included: 

 

  • 40% of consumers aged 18 to 21 say they are considering switching to a new financial services company, with over a third of consumers aged 22 to 37 reporting the same (35%).
  • 42% of consumers report that competitive rates and fees are the most significant factor when considering new financial services companies.
  • Meanwhile, 22% of consumers ranked the variety of available services as the most important factor.

Many of the factors influencing consumers’ decisions to use a new financial institution for the first time remained consistent across generations. The findings indicate the need for financial brands to provide specific information about rates, fees and services up-front to attract new customers.

Meanwhile, 42% percent of Gen Z-ers and 37% of Millennials highlighted that the ability to manage services via a mobile app is a top-three factor when considering new financial services companies, compared to 18% of baby boomers. According to the survey, “this indicates the priority younger consumers give to a convenient and mobile-friendly customer experience.”

The pressure is on for all financial institutions to demonstrate their value to consumers through high-quality services and data-driven content.”

– Michael Laccarino, CEO and chairman, Infogroup

“With the rise in peer-to-peer services and fintech startups, consumers now have more options than ever when it comes to selecting a financial services provider,” said Jim Sturm, President, Yes Marketing. 

“This trend, combined with consumers’ likelihood to stay long-term with the financial provider they selected, demonstrates how important it is for financial brands to have effective acquisition strategies that engage and build trust with new customers as they progress along their journey.”

On another note, Michael Laccarino, CEO and Chairman, Infogroup, parent company of Yes Marketing, said: “In today’s highly competitive and crowded financial services landscape, the pressure is on for all financial institutions to demonstrate their value to consumers through high-quality services and data-driven content.”

“Financial institutions must identify the right service and technology partner to deliver relevant and engaging content that meets evolving customer expectations and creates strong brand loyalty to maximize customer lifetime value across generations.”

Other Key Findings:

  • 52% of consumers ranked relevance as the most important marketing factor that influences their decision when selecting a financial services company they’re not currently using.
  • 42% of financial services consumers say they rarely or never receive relevant marketing communications from financial services companies they’ve used before or are currently using.
  • Nearly a quarter (22%) of consumers say they hear too frequently from companies across channels, while 8% say they do not hear from those same companies often enough.

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Written by

Wani Azahar

Last updated on

August 14th 2019, 10:39 am

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