Banking Industry

Seniors prefer branches, while Millennials bank by phone. The bottom line is you need to attract both!

Only 25% of consumers trust the banking industry. Primarily due to large bank failures and practices, the average consumer has a less than favorable opinion of banks. 53% believe there is no difference in institutions.

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Nearly 90% of the US. population owns mobile phones and nearly 83% of millennials bank by phone and 46% of the entire industry’s transactions are mobile.

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The average brick and mortar branch transaction cost is $4 per transaction while online costs are 25 cents. Most loans, 72% still originate in an actual branch. Yet, millennials prefer to open an account by phone, nearly 3:1.

Before choosing a bank, nearly 50% of potential customers review the bank by its Facebook page and 30% will change banks to add the benefit of full mobile banking capabilities.

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Larger banks typically have higher fees, pay lower interest rates and have slightly higher loan rates. Local banks and credit unions typically reinvest the assets locally helping the local economy.

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40% of the consumers bank by phone, 70% bank online, 75% utilize ATMs as their primary banking outlet and 82% still visit a branch. Visits have declined from several times a month to several times a year.

​There is tremendous opportunity for regional banks and credit unions to accelerate growth.

While 70% of the banking assets in America are controlled by only six major banks, there is tremendous opportunity for regional banks and credit unions to accelerate growth. Smaller banks are typically perceived as friendlier and having outstanding customer service compared to the “Big 6”. While this resonates with consumers it’s not enough to tip the scales. Local banks and credit unions are currently challenged to heavily invest in brick and mortar locations, mobile platform technology, safety standards, offer lower fees and have convenient ATM access. These issues may not be equally valued by your two targeted audiences but both customer subsets should be acknowledged.

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Local banks and credit unions must concentrate on these key issues: branches, mobile banking, rates, safety and convenience. It’s critical for each institution to understand all these issues are essential for growth. These issues are not necessarily prioritized the same by different targeted audiences, therefore they should not be melted together in your advertising efforts. Everyone appreciates convenience however; older customers still visit branches more than millennials and mils bank twice as much by phone as the average customer. Offering higher savings rates and lower loan rates is critical to both groups but rarely promoted effectively and neither customer wants to risk their money, so safety is critical to an industry lacking trust.

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