Description

This report provides comprehensive and current information and analysis of the Loyalty in Financial Services market including US Loyalty in Financial Services market size, anticipated market forecast, relevant market segmentation, and industry trends for the loyalty in financial services market in the US.

Current market landscape

Loyalty and trust are FIs’ most valuable currencies, with 86% agreeing that trust is critical to building loyalty. The pandemic saw FIs engaged at building both through a host of relief measures and charitable giving – enhancing many FIs’ brand image. While FIs were able to cultivate trust and loyalty through these efforts, the continued rise of fintechs and big tech companies entering the financial services space poses a threat to the loyalty traditional FIs can build with its customers.

Future market trends in customer loyalty in banking and financial services

With consumers having more choices than ever in their banking endeavors, loyalty will be a challenge to foster. Continuing to focus on providing strong customer service, compelling rewards, and being transparent will always give FIs the best chance at retaining their customers, however.

Read on to discover more about the US Loyalty in Financial Services consumer market, read our Financial Services in 2022 – US – 2022 report, or take a look at our other Finance research reports.

Quickly understand

  • The impact of COVID-19 on consumer behavior and loyalty in financial services.
  • Attitudes and behaviors toward loyalty in financial services.
  • Most important factors in remaining loyal to a financial services brand.
  • Switching and supplementing financial accounts.
  • How to retain customer loyalty in Financial Services

Covered in this report

Brands include: Staples Center, Klarna, Apple Card, Apple Pay, Affirm, TD Bank, Citizens, Citi, Capital One, Ally, Chime, Varo, Avant, PayPal, PNC, Bank of America, Chase, Facebook, American Express, Equinox, Sapphire Reserve, Venture X, J.D. Power, Equifax.

Expert analysis from a specialist in the field

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

As new competition emerges in the financial services space, loyalty continues to be a concept that is strongly challenged for traditional FIs. Consumers have more choice than ever when it comes to their banking endeavors, and while legacy FIs have the competitive advantage of trust, non-traditional providers are encroaching on their territory with compelling products and services. FIs that stand the best chance of retaining their customers and foster loyal relationships with them will deliver exceptional customer service, be transparent, and offer captivating incentives.

Amr Hamdi, Finance Analyst
Amr Hamdi
Finance Analyst

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Economic and other assumptions
            • COVID-19: US context
            • Executive Summary

                • Top takeaways
                  • Millennials are most likely to add new accounts with other providers
                    • Figure 1: Types of new accounts opened, by generation, 2021
                  • Rewards programs remain integral to building loyalty
                    • Figure 2: Importance of rewards program in building loyalty, by age, 2021
                  • 39% of consumers would be more likely to stay with their current FI if incentivized
                    • Figure 3: Attitudes toward brand loyalty to financial providers, 2021
                  • Market overview
                    • Impact of COVID-19 on loyalty in financial services
                      • Figure 4: Short-, medium- and long-term impact of COVID-19 on loyalty in financial services, 2021
                    • Opportunities and challenges
                      • Fintech expansion poses threat to loyalty towards traditional FIs
                        • Fostering loyalty through community outreach
                        • The Market – Key Takeaways

                          • The pandemic fostered a great deal of goodwill as FIs supported their customers
                            • The push for greater customer-centricity from FIs
                              • Impact of COVID-19 on loyalty in financial services
                              • Market Factors

                                • The pandemic fostered a great deal of goodwill as FIs supported their customers
                                  • The push for greater customer-centricity from FIs
                                  • Companies and Brands – Key Takeaways

                                    • TD Bank emphasized a stress-free banking experience
                                      • Figure 5: TD Bank Facebook ad, 2021
                                    • American Express increases its Platinum Card’s annual fee
                                      • PNC’s Low Cash Mode helps customers avoid the burden of overdraft fees
                                        • Figure 6: PNC’s Low Cash Mode Facebook ad, 2021
                                    • Competitive Strategies

                                      • Novus teamed up with Visa to launch an app that rewards sustainable purchasing choices
                                        • Figure 7: Novus, 2021
                                      • Bank of America took to social media to talk about its new security meter
                                        • Figure 8: Bank of America security meter, 2021
                                    • Market Opportunities

                                      • FIs can find more meaningful ways to innovate their loyalty programs beyond traditional means
                                        • Figure 9: Importance of rewards program in building loyalty, by age, 2021
                                      • Invest in convenient digital solutions to build loyalty
                                        • Figure 10: Importance of digital experience in building loyalty, by generation, 2021
                                    • The Consumer – Key Takeaways

                                      • More than a third switched to commercial banks as primary providers
                                        • Trust and security are key pillars to building loyalty
                                          • 2008 recession remains fresh on the minds of Millennials
                                          • Switching Accounts

                                            • Consumers, especially younger ones, are most likely to switch their checking accounts to another provider
                                              • Figure 11: Switching of primary provider, by age, 2021
                                          • Types of Providers Consumers Switched to

                                            • More than a third switched to commercial banks as primary providers
                                                • Figure 12: Types of providers switched to as primary providers, 2021
                                              • 35% of Millennials switched to online-only banks as their primary providers
                                                • Figure 13: Types of providers switched to as primary providers, by generation, 2021
                                            • Supplementing Accounts

                                              • Credit cards and checking accounts are the most popular types of supplement accounts
                                                • Figure 14: Types of new accounts opened, 2021
                                            • Types of Providers Consumers Opened Additional Accounts with

                                              • Most go to commercial banks to open new accounts
                                                • Figure 15: Types of providers consumers opened an additional account with, by generation, 2021
                                            • Most Important Factors in Choosing a Financial Provider

                                              • Customer service and transparency are the most important factors in choosing an FI
                                                • Figure 16: Most important factors in choosing a financial provider, 2021
                                            • Most Important Factors in Loyalty toward Financial Provider

                                              • What drives choosing a financial provider differs from what drives remaining loyal to them
                                                • Figure 17: Factors most important for loyalty to financial provider, 2021
                                              • 31% value data transparency as key to building loyalty
                                                • Figure 18: Importance of data transparency in building loyalty, by generation, 2021
                                              • Financially struggling consumers less likely to consider financial advice as a key loyalty factor
                                                • Figure 19: Importance of financial advice in building loyalty, by financial situation, 2021
                                            • Attitudes toward Switching Providers

                                              • Just 19% of consumers would consider switching FIs if were easier
                                                • Figure 20: Attitudes toward brand loyalty to financial providers, 2021
                                              • Younger generations are more open to paying increased fees to continue using their favorite financial products
                                                • Figure 21: Willingness to pay a fee to continue using financial product, by generation, 2021
                                            • Attitudes toward Loyalty

                                              • Trust and security are key pillars to building loyalty
                                                • Figure 22: Importance of trust and security on loyalty, 2021
                                              • Black consumers are most loyal to their primary banks, yet don’t expect to be rewarded for it
                                                • Figure 23: Loyalty toward primary bank vs finance industry, by race and ethnicity, 2021
                                              • 2008 recession remains fresh on the minds of Millennials
                                                • Figure 24: Attitudes regarding trust and 2008 recession, by generation, 2021
                                            • Appendix – Data Sources and Abbreviations

                                              • Data sources
                                                • Consumer survey data
                                                  • Marketing creative
                                                    • Abbreviations and terms
                                                      • Abbreviations

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