CHICAGO–(BUSINESS WIRE) – Recent searches by BAI, an independent nonprofit that provides the most actionable insights in the financial services industry, has found that consumers’ banking preferences change and behaviors change from generation to generation. the research reveals how the pandemic has accelerated changes in the banking behaviors of Baby Boomers (Baby Boomers +), Generation X (Generation X), Generation Y and Generation Z (Generation Z) customers. These findings aim to better understand generational banking preferences in order to equip financial services leaders with the information they need to plan for the future.
Trends by generation include:
The fastest way to retain Gen Z is to enjoy 24/7 customer service. When asked how their digital applications can be improved, access to 24/7 customer service was available. answer number one.
44% percent of Gen Z respondents consider debit card their first preferred payment choice, followed by cash at 28%. Mobile payments rank last of all generations.
75% of Millennials note they would switch financial services organizations for a better mobile experience, marking a 28% year-over-year increase and the highest of any generational group.
Gen Xers trust their primary financial services provider more than any other generation. And, while only 39% of Gen X consumers have experienced fraud or identity theft, 95% believe their major financial services “did enough to resolve fraudulent activity on my account quickly and efficiently.”
Only 63% of baby boomers believe their primary financial service provider will protect them from fraud and identity theft, which is the lowest among generations.
“Ensuring an ongoing understanding of generational banking preferences will remain essential for financial services leaders as they develop the appropriate strategies to prioritize products and services for their clients,” said Karl Dahlgren, CEO of BAI. “By recognizing these behaviors, financial services leaders can better serve their customers and use this information to better predict future behaviors and preferences, thereby positioning their organizations for success.”
Although generational preferences vary, about half of consumers plan to cede all of their future depository business to their current primary financial services organization. However, these numbers decrease for all generations when asked if they plan to donate their future loan or investment business to their current primary financial services organization.
As an independent, not-for-profit organization, BAI has been providing the most actionable insights in the financial services industry for over 95 years, helping executives make smart business decisions every day. We provide in-depth and proprietary research to over 40 of America’s largest banks, support over 2,100 financial services organizations with compliance training and professional development, provide trusted and relevant thought leadership through BAI banking strategies reports, podcasts and webinars, and to offer specialized events and programs. For more information visit www.bai.org.