All consumers have an opinion about the role a financial institutionshould have in their day to day lives. According to Kasasa’s latest consumer study1, younger adults appear to care less about whether their account is with a community financial institution and more about what they can get from that institution.
Fortunately, 85% of Americans believe community banks and credit unions are capable of satisfying the majority of their financial needs. Over half (55%) would consider opening an account at a community bank or credit union, but just 3 in 10 would consider a national bank.
While megabanks still have majority market share, the gap has shrunk, with 45% of Americans having accounts at national megabanks versus 43% having accounts at local community banks and credit unions.
Growing deposits is expected to get harder.
The findings above highlight the importance of understanding what consumers value so institutions can offer the right products and services, thus generating deposits – an increasingly challenging task. According to BAI, almost two-thirds of bankers said deposit competition increased over the past year. Over two-thirds expect it to increase in the next year.2
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