All Talk, No Action: Almost 30% of Consumers Considered Switching Banks in the Last 6 Months

Banks are really dropping the ball when it comes to delivering great customer experiences. Over 50% of Americans have taken action regarding their banking choices in the last six months, revealed a consumer study by MX Technologies. Specifically, 23% of them have opted to open a fresh account, while 28% have contemplated moving to a different bank. The primary drivers behind these decisions are improved customer service, higher rates of savings, enhanced convenience, and lower interest rates.

The study by MX Technologies found the primary factors that significantly impact consumers' decisions regarding where to deposit their money and manage their finances.

"Our research shows the trust is there but the experiences consumers expect are not. Banks, credit unions, and other financial providers have a huge opportunity to grow their businesses and increase customer engagement by focusing on personalized money experiences that give consumers the tools, services, guidance, and rewards they want and need," said Crystal Anderson, Vice President of Product at MX.

Tech companies aren't overtaking banks in the financial sector  

Only a mere 3% of consumers expressed their preference for trusting tech companies to securely handle their financial data. Additionally, a significant 38% of respondents stated that they are unlikely to rely on technology companies for managing their finances or holding their money.

Trust emerges as a critical factor in consumers' decisions when selecting a financial services provider.

Indeed, an impressive 58% of respondents ranked the level of trust they have in a provider as one of the most critical factors influencing their decision. Moreover, 44% of respondents reported an increase in trust toward their financial providers compared to six months ago. Trustworthiness is gaining importance as a decisive factor in the banking industry.

Consumers are not satisfied with financial providers  

As many as 33% of consumers believe that financial providers are not doing enough to support their financial requirements. Additionally, half of all consumers expect their financial providers to offer personalized solutions, tools, products, and services to aid them in achieving their financial goals.

Interestingly, many consumers are open to sharing personal information if it results in a better experience. Around 39% of consumers stated that they would be willing to provide access to their financial transaction history to receive more personalized offers and services from retailers or restaurants they frequently visit.

The Pay by Bank method stands a strong chance of winning over consumers. A significant majority, 55% of consumers, expressed their inclination to opt for direct payments from their checking accounts rather than using credit or debit cards, given the presence of an incentive.

National banks are the most trusted  

When it comes to trusting organizations with securely managing their financial data, national banks are at the forefront. Among respondents, 50% showed the highest level of trust in national banks to handle their financial information securely. Credit unions followed closely with 19% trust, and local or regional banks earned 10% trust from consumers.

Consumer opinions are divided when it comes to how they perceive their financial providers. On the one hand, 55% of consumers view their financial provider as a trusted partner, believing that the institution plays a role in assisting them in achieving their financial objectives. On the other hand, 53% of consumers see their financial provider merely as a place to store their money without a deeper partnership in their financial journey.