CHICAGO – Nov. 30, 2017 – BAI, a nonprofit independent organization that delivers the financial services industry’s most actionable insights, recently announced the key findings of the 2017 BAI Banking Outlook research study to reveal consumers’ opinions on a variety of financial services topics that are top of mind for the industry.
During the Banking in 2018 – From the Customers’ Perspective webinar on Nov. 14, BAI shared the highlights of the BAI Banking Outlook report, a research study of 2,000 consumers across different generational segments and 556 financial services leaders representing organizations ranging in size from community banks to large mega banks. BAI conducts the BAI Banking Outlook study semiannually to provide financial services leaders with actionable insights on the latest trends in the industry.
Highlights from the BAI Banking Outlook include:
- Most new customers that financial services organizations gain are millennials. Nearly 75 percent of millennials find a new primary financial institution (PFI) through website research or online ads, yet financial services organizations only designate about 33 percent of their advertising budget to digital channels.
- 70 percent of financial services organizations surveyed believe their banking applications (app) meet the needs of their customers, but over half of millennials said they would change financial services organizations for a better banking app.
- Person-to-person (P2P) platforms are becoming more relevant across all surveyed generations of consumers, but non-banks are the leading P2P platform providers. In the last 12 months, 93 percent of millennials, 81 percent of Generation X, 62 percent of baby boomers and 49 percent of the silent generation used a P2P platform more than once.
- Across generations surveyed (millennial, Generation X, baby boomers and silent), the number one reason why consumers choose their PFI is convenient branch locations, however, almost 50 percent of bankers reported that in-branch transactions have decreased over the past year. Additionally, millennials surveyed that incentives (18 percent), such as cash or gifts, is almost as important as convenient branch locations (25 percent).
“It is important for financial services organizations to thoroughly know their customers’ financial needs as they develop strategies. Without direct feedback, they may be missing the mark, and consequently, missing key opportunities for growth,” said Karl Dahlgren, Managing Director at BAI. “Through our commitment to research, we bridge the gap between consumers and financial services organizations and drive the industry forward. We identify what consumers truly want out of their primary financial institution and compare it to what financial services organizations are seeing, experiencing and focused on developing.”
For more information about the BAI Banking Outlook survey results, or to watch the free webinar, visit https://www.bai.org/conferences-events/webinar.
As a nonprofit, independent organization, BAI delivers the financial services industry’s most actionable insights, enabling leaders to make smart business decisions every day. We’re passionate about the trusted information and powerful tools that provide leaders with the clarity and confidence needed to drive positive change and move the financial services industry forward. For more information, visit www.bai.org.
About BAI’s Research
BAI provides trusted, in-depth comparative analytics, including benchmarking research on consumer, commercial and small business deposit performance, talent management, marketing spend and other strategic areas for U.S. banks. BAI’s comparative analytics provide meaningful comparisons and allow financial services leaders to better understand their position relative to others in the industry. In addition to comparative analytics, BAI conducts a variety of research on industry trends and consumer behavior to help financial services leaders fully grasp today’s business dynamics and gain insight into the future. For more information, visit www.bai.org/research.