The battle for primary financial institution status among Gen Z and Millennial consumers is shaping up heavily in favor of the nation’s major banks, according to Raddon Research, and 73% of the movement towards those megabanks reflects Bank of America gaining market share from smaller banks and credit unions.
Seven out of ten of both Millennials and Gen Z consumers claim one of the six largest banks to be their primary financial institution, Raddon finds.
One hope for smaller competitors: The relationships between financial institutions and both Millennials and Gen Z is much more fluid than with older generations. Raddon’s research indicates that both generations are more willing to move to other providers even after selecting a bank or credit union as their primary financial provider.
The firm’s report, “Why Are Millennials and Gen Z Gravitating to the Big Banks?,” indicates that smaller players can regain some share among these groups, but that potential hinges most directly on an institution’s ability to provide good mobile banking service.
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