US Banking Experience Market Report 2025
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While customers continue to lean towards the convenience mobile solutions provides, physical branches remain of extreme importance to many, especially across products and services benefitting from the human touch like financial advisory and mortgage planning. As such, more FIs are reimagining their branches as hubs for deeper connections through community-centric events, financial education, and personalized counselling.
Underserved segments, including multicultural and low-income communities, also remain addressable markets for FIs looking for growth opportunities, as well as for more altruistic goals of expanding financial inclusion. Customer-centric solutions like overdraft protection, early pay access, and financial wellness tools are areas that will continue to resonate with these groups as they aim to better their financial health.
Going beyond product acquisition, banks must continuing investing in the relationship side of banking to foster greater trust and inclusivity – positioning their brands as essential partners to their customers’ financial journeys.
This report looks at the following areas:
- Usage of financial institutions in the past year
- Consumers and overdraft/non-sufficient fund fees
- Total number of open bank accounts and length of ownership
- Reasons for visiting a bank branch
- Most important factors when consumers consider a new provider
- Behaviors and attitudes toward banking
The banking landscape remains on a path of transformation shaped by the rapid growth of digital solutions and evolving consumer needs.
Amr Hamdi, Senior Analyst – Financial Services
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EXECUTIVE SUMMARY
- What you need to know
- Striking a balance between physical and digital banking
- Graph 1: attitudes toward physical bank branches, by generation, 2025
- Position branches as value-filled hubs for deeper customer relationships
- Younger consumers are driven by the monetary benefits of switching banks
- Graph 2: reasons to switch financial services provider, by generation, 2025
- Appealing rewards can make FIs top of wallet instead of being relegated to a backseat
- Position advisory services to be more inclusive of subprime customers
- Graph 3: reasons for visiting bank branch, by self-reported credit score, 2025
- Market predictions
- Opportunities
- Fees and customer service are closely matched as factors that would induce bank switching
- Graph 4: reasons to switch financial services provider, 2025
- A pause in rate cuts could be a boon for deposit acquisition in the near-term
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MARKET DYNAMICS
- Market context
- Market drivers
- The number of commercial banks has dwindled since the Great Recession
- Graph 5: total number of FDIC-insured commercial banks, 2008-2023
- FIs continue to reconsider their physical presence amid year-over-year increases in branch closures
- Graph 6: total number of FDIC-insured commercial bank branches, 2008-2023
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CONSUMER INSIGHTS
- Consumer fast facts
- Types of FIs used in the past year
- Over half use commercial banks, reflecting a strong preference for familiar and trusted brands
- Graph 7: types of FIs used in the past 12 months, 2025
- Commercial banks dominate in penetration across young and old adults, while online-only banks found a solid customer base in older Millennials
- Graph 8: types of FIs used in the past 12 months, by generation, 2025
- Financially struggling consumers lean towards digital FIs
- Graph 9: types of FIs used in the past 12 months, by financial situation, 2025
- Consumers and overdraft/non-sufficient fund fees
- Multicultural and financially struggling consumers are the most vulnerable to junk fees
- Graph 10: % of consumers that were charged an overdraft/NSF fee in the past 12 months, by financial situation, race, and ethnicity, 2025
- With the majority of legacy players still charging junk fees, the fee-free model of digital banks positions them well as competitors
- Total number of open bank accounts and length of ownership
- Over half have multiple accounts – mainly driven by older adults
- Graph 11: total number of current open accounts, by generation, 2025
- Nearly a third have had their primary accounts for over 16 years
- Graph 12: length of primary account ownership, 2025
- Different generations embody different approaches to account ownership
- Graph 13: length of primary account ownership, by age, 2025
- Over 40% of 18-24 olds have held their primary bank accounts for 3-5 years, providing grounds for early relationship building for banks
- Reasons for visiting physical branch locations
- ATM usage tops the list of reasons for branch visits
- Graph 14: reasons for visiting bank branch, 2025
- Younger Millennials’ preference for in-branch advisors opens a wealth of cross-sell opportunities for banks
- Graph 15: reasons for visiting bank branch, by generation, 2025
- Millennials’ proclivity towards branches for account opening illuminates the value of human guidance during the acquisition journey
- Graph 16: reasons for visiting bank branch, by generation, 2025
- Most important factors in choosing financial providers
- Customer service is the most cited factor when consumers seek a banking provider
- Graph 17: most important factors in choosing a financial services provider, 2025
- Gen Zers place the highest importance on savings account rates when choosing their provider
- Graph 18: most important factors in choosing a financial services provider, by generation, 2025
- The significance of rewards and financial advice when selecting a provider is most prevalent among younger adults
- Graph 19: most important factors in choosing a financial services provider, by generation, 2025
- Mid and high-earners place an elevated importance on their banks providing them with financial advice
- Graph 20: most important factors in choosing a financial provider, by household income, 2025
- Behaviors and attitudes toward banking
- Most consumers are satisfied with their current bank
- Graph 21: current bank satisfaction, by generation, 2025
- The overwhelming majority prefer to bank with brands that carry well-established reputations
- Graph 22: preference to bank at well-established FIs, by generation, 2025
- Over 70% would sign up for a bank if offered an incentive that was appealing enough
- Graph 23: likelihood of signing up for a new bank account if incentives are offered, by generation, 2025
- Position early paycheck access as a feature that can help one better manage their finances
- Graph 24: attitudes toward early pay access, by employment status, 2025
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INNOVATION AND MARKETING STRATEGIES
- Marketing and advertising
- Capital One coupled an enticing sign-up bonus with messaging around affordability
- Chime highlighted customers can avoid future paycheck delays through its early pay service
- Think Bank enticed switching through a community-driven approach
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APPENDIX
- Consumer research questions
- Consumer research methodology
- Generations
- Abbreviations and terms
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