US Loyalty in Financial Services Market Report 2019
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Description
Key points included
- What do consumers want in exchange for their loyalty? Security, and a brand they can trust
- The shadow of the 2008 financial crisis still hangs, as new worries build
- Counterpoint: does brand loyalty exist anymore
Covered in this report
This report examines consumer attitudes and behaviors in the context of loyalty in financial services, and hopes to address what makes consumers loyal to a brand, and how consumers think about the concept of brand loyalty.
Expert analysis from a specialist in the field
Written by Chris Shadle, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Loyalty in the context of financial services is an intrinsically different consideration than one which pertains, for example, to the auto or retail sectors. Whereas the lifetime Chevy buyer is loyal to a tangible and recognizable product produced out of raw materials, the banking customer is loyal to, in simplest terms, the custodian of what is already theirs to begin with 
Chris Shadle
Financial Services Analyst
Table of Contents
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Overview
- What you need to know
- Definition
- What you need to know
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Executive Summary
- Market overview
- Key Findings
- Deposits draw the most love
- Figure 1: Loyalty to primary financial services provider, by product, October 2019
- What do consumers want in exchange for their loyalty? Security, and a brand they can trust.
- Figure 2: Importance of trust and security on loyalty, October 2019
- The shadow of the 2008 financial crisis still hangs, as new worries build
- Figure 3: Attitudes regarding recessions, government, financial industry, by generation, October 2019
- Counterpoint: does brand loyalty exist anymore?
- Figure 4: General attitudes regarding brand loyalty, October 2019
- What it means, and what’s next
- Market overview
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The Market – What You Need to Know
- Consumers can only be loyal to those products which they own
- Financial brands will have to target an increasingly diverse customer base
- Consumers can only be loyal to those products which they own
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The Market for Financial Loyalty
- Product ownership precedes loyalty
- Figure 5: Financial product ownership rates, October 2019
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- Figure 6: Select financial product ownership rates, by age, October 2019
- Diversity is the way of the future
- Figure 7: Generation composition, race and Hispanic origin, 2018
- Product ownership precedes loyalty
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Key Players – What You Need to Know
- What consumers think is working
- What consumers think is struggling
- What consumers want
- What consumers think is working
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What’s Working
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- Consumers in their own words
- Ally Bank’s Happy Banksgiving Campaign
- Figure 8: Ally Bank, Happy Banksgiving emails, November 2019
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- Figure 9: Ally Bank, Happy Banksgiving 2019, November 20, 2019
- Credit Karma’s holistic, incremental approach to financial wellness
- Figure 10: Credit Karma, savings account announcement, October 2019
- Figure 11: Credit Karma, credit score decrease email alert, October 2019
- Figure 12: Credit Karma, credit score increase email alert, October 2019
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What’s Struggling
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- Consumers in their own words
- For many, brand loyalty is a specter of times past
- Figure 13: General attitudes regarding brand loyalty, October 2019
- Challenger brands have some hiccups
- Figure 14: Chime, twitter response to outage, October 17, 2019
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What’s Next
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- What consumers want
- Consumers are evenly split on the necessity of in-branch banking
- Figure 15: Necessity of in-branch banking, by generation, November 2018
- ESG initiatives are big money, but are they a big façade?
- Business Roundtable redefines purpose of a corporation
- Corporate responsibility in lieu of a legislative solution?
- Immigrants wish banks had more of their data
- Figure 16: Nova Credit & American Express, Credit Passport, December 2019
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The Consumer – What You Need to Know
- Loyalty follows the money
- A third of consumers have switched financial providers in the past year
- What do consumers want? Security, quality, value
- Want to poach a loyal customer? Most say they would need $1K
- Recessions, past and future, still worry consumers
- Loyalty follows the money
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Loyalty by Product Type
- People are most loyal to their deposit accounts
- Figure 17: Loyalty to primary financial services provider, by product, October 2019
- Card issuers should play the long game: seniors are the most loyal
- Figure 18: Loyalty to primary credit card, by age, October 2019
- Less loyalty lent to lenders and insurers
- Figure 19: Loyalty to primary financial services provider, by product, October 2019
- People are most loyal to their deposit accounts
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Switching Accounts
- A third of consumers switched a financial account last year
- Figure 20: Switching behavior, by financial product type, October 2019
- Youngest consumers are switching the most
- Figure 21: Switching behavior, select financial products, by age, October 2019
- What would it take to switch? About $1k
- Figure 22: Cost to change most loyal financial relationship, October 2019
- A third of consumers switched a financial account last year
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Important Loyalty Factors
- Security tops the list
- Figure 23: Most important factors in choosing a financial provider, October 2019
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- Figure 24: Citi, informational email, mobile app security features, June 2019
- Price vs. Value: an age game
- Figure 25: Importance of price and value on loyalty, by age, October 2019
- Customer service still matters more than a digital presence
- Figure 26: Importance of customer service vs digital presence, by generation, October 2019
- Security tops the list
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Attitudes toward Loyalty
- Trust and security are paramount
- Figure 27: Importance of trust and security on loyalty, October 2019
- 2008 recession remains an issue
- Figure 28: Attitudes regarding recessions, government, financial industry, by generation, October 2019
- Hispanic consumers may be more loyal
- Figure 29: Loyalty toward primary bank vs finance industry, by Hispanic origin, October 2019
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- Figure 30: Wells Fargo, Spanish language online advertisement, December 2019
- Trust and security are paramount
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Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
- Data sources
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
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