Description

Providing the most comprehensive and up-to-date information and analysis of the US Banking Experience Consumer market including the behaviors, preferences, and habits of the consumer.

The total number of US banks is falling, as is the total number of branches. Consumers are quickly adopting digital channels – both online and mobile – but will still be looking for the safety of a brick-and-mortar branch as the pandemic winds down in the next few years. Satisfaction levels are high, but adults aren’t feeling as valued by their primary bank. To maintain loyalty, banks need to offer seamless transaction experiences as well as positive customer service interactions.

Read on to discover more about the US Banking Experience consumer market and customer experience trends in banking, read our Insurance Purchase Process – US – 2021 report, or take a look at our other Financial Services research reports.

Quickly understand

  • The impact of COVID-19 on consumer behavior and the banking market.
  • Trends in US banking.
  • Banking behaviors affected by COVID-19.
  • Reasons to switch banks.
  • Bank customer experience research.

Covered in this report

Banks include: JPMorgan Chase, Bank of New York Mellon, Bank of America, Wells Fargo Bank, Citibank, US Bank, Truist Bank, PNC Bank, TD Bank, Capital One, Barclays GLobal Financial Services, Zelle, Venmo, Chime, Ally, Monzo, MasterCard, Greenwood.

Expert analysis from a specialist in the field

This report, written by Jennifer White Boehm, a leading analyst in the Finance sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Banks were considered essential and kept open during the peak of the COVID-19 pandemic, but no one was really visiting their local branch out of concerns for virus exposure. Although vaccinations are becoming more widespread, the accelerated adoption of digital banking by  a number of banking customers over the past year may keep them permanently out of branches 99% of the time – but they still appreciate the comfort of knowing one is close to home. Banks must tend to their digital experiences, while also maintaining a positive, useful presence in person.

Jennifer White Boehm, Associate Director, Finance Reports
Jennifer White Boehm

Associate Director, Finance Reports

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
  2. Executive Summary

    • Top takeaways
    • Market overview
    • Impact of COVID-19 on the banking experience
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the banking experience, March 2021
    • Opportunities and challenges
    • Banks will need to step up investment offerings to keep additional deposits
    • FSIs need to attract younger consumers to retain loyalty
    • Banks must build a bridge between satisfaction and value
  3. The Market – Key Takeaways

    • Total number of banks has declined for the past decade
    • Personal savings rate remains high and will spike due to US stimulus
    • Majority of US adults have at least one financial account
    • National banks remain the most popular
  4. Market Size

    • Total number of banks has declined for the past decade
      • Figure 2: Total number of US insured commercial banks, 2008-19
    • Chase, Bank of America remain banks with highest US assets
      • Figure 3: Insured US-chartered commercial banks that have consolidated assets of $300 million or more, 2020
    • Total number of branches continues to fall
      • Figure 4: Total number of US insured commercial bank branches, 2008-19
    • US assets for domestically chartered banks grew by 23% in 2020
      • Figure 5: Deposits, large domestically chartered commercial banks, January 2008-January 2021
      • Figure 6: Deposits, large domestically chartered commercial banks, January 2019-January 2021
    • Impact of COVID-19 on the banking experience
      • Figure 7: Short-, medium- and long-term impact of COVID-19 on the banking experience, March 2021
    • Lockdown
    • Reemergence
    • Recovery
    • COVID-19: US context
  5. Market Factors

    • Unemployment continues a slow decline
      • Figure 8: Unemployment and underemployment, January 2008-January 2021
    • GDP continues with strong recovery into 2021
      • Figure 9: GDP change from previous period, Q1 2008-Q4 2020
    • Personal savings rate remains high and will increase with second stimulus
      • Figure 10: Personal savings rate, January 2008-February 2021
    • DPI comes down from April 2020 peak but remains high year over year
      • Figure 11: Disposable personal income change from previous period, January 2008-February 2021
  6. Ownership of Financial Accounts

    • Majority of US adults have at least one financial account
      • Figure 12: Ownership of financial accounts, by gender and age, November 2020
    • Older adults more likely to have mortgage, younger have auto and student loans
      • Figure 13: Ownership of loan accounts, by gender and age, November 2020
  7. Usage of Financial Institutions in the Past Year

    • National banks remain most popular financial institutions
      • Figure 14: Usage of financial institutions in the past year, November 2020
    • Age, household income not significant factors in usage of financial institutions
      • Figure 15: Usage of financial institutions in the past year, by generation and household income, November 2020
  8. COVID-19’s Effect on Banking Activities

    • COVID-19 increased digital and mobile adoption for banking activities
      • Figure 16: Changes in banking due to COVID-19, November 2020
    • Oldest consumers are not changing their banking behaviors
      • Figure 17: Changes in banking due to COVID-19, by gender and age, November 2020
  9. Companies and Brands – Key Takeaways

    • Consumer banking behavior will be driven by Identity, Technology, Rights and Wellbeing
    • Comperemedia’s top trends focus on concern for COVID-19, coupled with increased technology adoption
    • Banks look to adapt to a changing culture in order to keep moving ahead to the future
  10. Trends in Banking

    • Consumer banking behavior will be driven by Identity, Technology, Rights and Wellbeing
    • Identity
    • Technology
    • Rights
    • Wellbeing
    • Comperemedia’s top trends focus on concern for COVID-19, coupled with increased technology adoption
    • Viral vigilance
    • Accelerated adoption
    • Preparing and planning
    • Riding out the recession
  11. Competitive Strategies

    • Celebrate the “end” of a lending relationship to renew customer loyalty
      • Figure 18: Ally Financial, auto loan email, December 2020
    • Fintechs keep up their fight to compete with big banks
      • Figure 19: Stash homepage as of March 2021
      • Figure 20: Monzo homepage as of March 2021
      • Figure 21: Plaid homepage as of March 2021
    • Citibank’s culturally driven change allows for a “chosen” name
    • Greenwood’s equitable mission for Black and Latinx communities
  12. The Consumer – Key Takeaways

    • Most adults have at least two accounts
    • Nearly 40% of adults have had their bank account over 16 years
    • Cash is bringing customers into bank branches
    • Switching banks is a hassle, but incentives are tempting
  13. Total Number of Bank Accounts

    • Most adults have at least two accounts
      • Figure 22: Total number of bank accounts, November 2020
    • 35-44s, 55+ most likely to have multiple accounts
      • Figure 23: Total number of bank accounts, by age, November 2020
    • Regardless of age, men are more likely to diversify their bank accounts
      • Figure 24: Total number of bank accounts, by age and gender, November 2020
    • Emerging affluent and affluent adults more likely to have 2-5 accounts
      • Figure 25: Total number of bank accounts, by household income, November 2020
  14. Length of Bank Account Ownership

    • Nearly 40% of adults have had their bank account over 16 years
      • Figure 26: Length of ownership – Primary bank account, November 2020
    • FSIs need to catch the eye of young consumers to retain loyalty
      • Figure 27: Length of ownership – Primary bank account, by age, November 2020
    • Urban adults are “younger” account holders
      • Figure 28: Length of ownership – Primary bank account, by geographic location, November 2020
  15. Reasons to Visit a Bank Branch

    • Cash is bringing customers into bank branches
      • Figure 29: Reasons to visit a bank branch, November 2020
    • Younger, mainly male, consumers are using bank’s advisory services
      • Figure 30: Reasons to visit a bank branch, by age and gender and generation, November 2020
    • Gen Z adults look to avoid digital channels, while Gen Xers avoid the branch
      • Figure 31: Reasons to visit a bank branch, by generation, November 2020
  16. Reasons to Switch Banks

    • Fees continue to be top reason to switch, followed by customer service
      • Figure 32: Reasons to switch banks, November 2020
    • Recommendations, lifestage are more important to younger audiences
      • Figure 33: Reasons to switch banks, by age, November 2020
    • Millennials could be incentivized to switch
      • Figure 34: Reasons to switch banks, by generation, November 2020
  17. Attitudes toward Banks

    • Satisfaction with bank is higher than feeling valued
      • Figure 35: Satisfaction, likelihood to recommend bank, November 2020
    • Switching banks is a hassle, but incentives are tempting
      • Figure 36: Hassles of switching, interest in incentives, by age, November 2020
    • Branches are still a necessity, regardless of geography
      • Figure 37: Necessity of in-branch banking, by geographical region, November 2020
    • Technology companies won’t overtake the banking industry (yet)
      • Figure 38: History versus technology, by age and gender, November 2020
  18. Appendix – Data Sources and Abbreviations

    • Data sources
    • Consumer survey data
    • Direct marketing creative
    • Abbreviations and terms
    • Abbreviations

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