Saylent study identifies consumer, small business banking preferences and relationship depth

Findings Help Financial Institutions Provide Products and Services that Bolster Customer Satisfaction and Drive Revenue
(May 13, 2015) — Saylent, which provides data analytics software and services to financial institutions that improve profitability and product innovation, today announced the results of a study it conducted with Informa Research Services, Inc. on consumer and small business banking preferences and the depth of relationships they have with their financial institutions. The research findings provide key insights into how different groups like to bank and the products and services they desire.

The study was conducted in late Q4 2014 with a survey of 1,200 consumers and 400 small businesses. Consumers represented three groups: lower mass market, with investable assets from $1,000-25,000; upper mass market, with investable assets from $25,000-100,000; and mass affluent, with investable assets over $100,000. Small businesses surveyed ranged from $250,000 to $1 million in revenue.

Key findings include:

  • Millennials: 56 percent of millennials would switch from their current bank for an account that did not automatically pay overdraft items for a fee. Also, while online banking is the preferred money management channel for all segments analyzed, millennials are three times as likely to report that mobile is their preferred channel.
  • Underbanked: 54 percent of underbanked consumers would switch from alternative financial service providers to a bank offering a product with no overdraft fees. 25 percent would pay between $10-20 per month for this account.
  • Mass Market: Mass market consumers show a large variance in how they prefer to bank.
    • 52 percent prefer to use their debit card as their primary account access channel; however, 48 percent prefer some combination of checks and cash.
    • 70 percent of consumers would enroll in eStatements for a cash reward or preferential interest rate. 74 percent would enroll in ACH direct deposit or draft payment plan.
    • 30 percent would stop using branches to receive rewards on their checking account like ATM refunds, above market interest rates and cash rewards.
  • Mass Affluent: Just over 50 percent of mass affluent consumers indicated they will be in the market for a CD in the next six to 12 months. However, only 27 percent of these consumers indicated that their liquid savings are currently in CDs.
  • Small Businesses: Over 70 percent began their relationship with their bank based on a loan or line product, and 97 percent of respondents were satisfied with their banking relationship. However, 71 percent would consider switching to a bank that helped them save time and money.

“These findings clearly demonstrate different groups’ preferences with regards to banking products and services,” said Tyson Nargassans, president and CEO of Saylent. “What financial institutions can glean from this research is that the large underbanked and millennial markets present a substantial opportunity for customer growth and revenues. In addition, banks and credit unions that differentiate and package products for different audiences, including incentives and rewards for specific behaviors, as well as optimize for the mobile channel, will drive adoption, more effectively serve customer needs and bolster satisfaction and loyalty.”

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