About half (49%) of US banking customers under the age of 55 agree that it is easier to switch banks than it used to be. But, what drives these younger customers to switch banks? Here’s what a report [download page] from Mobiquity has revealed.
Convenience has become a driver for a great deal of customer behavior, including how people want to bank. The majority (81%) of US banking customers under 55 agree that they like to access their bank account and complete transactions at a time that works best for them. Convenience no doubt also factors into why these younger consumers would switch banks, with some 7 in 10 saying they would switch in order to get the best overall experience.
Although the majority of survey respondents say they haven’t made changes to any of their banking accounts in the past year, some have made changes to checking (11%), savings (11%), investment (14%) and mortgage (17%) accounts.
Younger customers seem more ripe for switching behavior than their older counterparts. Indeed, not only does the data show that younger customers are less likely than older customers to rate their overall satisfaction with the bank accounts they are currently using as very satisfied/satisfied, but they are also more likely to switch banks in the next 12 months than older respondents.
A little less than half (46%) of bank customers younger than 55 also agree that they would switch banks to get better digital features, compared to a little more than one-quarter (27%) of those older than 55. These younger customers were also slightly less likely than older customers to be satisfied with the digital tools available for their current bank accounts.
And, while the top reason for switching banks in the future for both groups was better banking terms, those younger than 55 were more likely than those over the age of 55 were fairly equally likely to cite a range of digital experiences such as an easier-to-use mobile app (35% vs. 30%), digital ID verification (34% vs. 32%) and a digital wallet that allows for payment using a phone (27% vs. 24%).
The full report can be downloaded here.
About the Data: Findings are based on a survey of 2,445 US banking customers ages 18 and older.