Financial services research firm BAI released a report on generation-based banking preferences on Thursday, revealing how Gen Z, Gen Y, Gen X and Baby Boomers have changed their attitudes towards from the bank in the last 12 months of the pandemic.
Among the key findings of “BAI’s Special Banking Outlook Report: Banking Attitudes, Generation by Generation,” Gen Z respondents (ages 18-24) said that providing 24/7 customer service / 7 is the best way to improve mobile banking applications. Gen Z also ranked debit cards as their preferred payment method (44%), followed by cash (28%).
Another notable finding is that 75% of Millennials (ages 25-40) said they would switch financial services organizations for a better mobile experience – a 28% increase year over year and highest of all generations. Ninety-one percent of Gen Xers (41-56 years old) said they trusted their financial service provider and, while only 39% of Gen X consumers said they had been the victim of fraud or of identity theft, 95% reported their main financial service provider. “Did enough to resolve fraudulent activity on my account quickly and efficiently.” Only 63% of baby boomers said they believe their primary financial service provider will protect them from fraud and identity theft – the lowest of all generations. BAI included all consumers aged 57 and over in the baby boomer group for the report.
When asked to rank their preferred payment method, mobile payments came last for all generational groups. Another view shared by all generations was that about half of them (47-57%) said they plan to donate all of their future deposit activity to their current primary financial service provider. However, far fewer felt the same about lending and investing activities – looking at the results of each generational group, 26-36% said they would donate their future lending activity (excluding cards credit) to their current provider, and 26-39% said they would donate their future investment activity to their current provider.
BAI said its survey reached an equal number of consumers from each generational group, and that about half of them were large client banks, with the gap remaining between direct banks, regional banks and co-ops. credit.
“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, in a statement. press announcing the report. “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.”
Below is a summary of the report’s other key findings by generation:
- 59% are financially independent (compared to 47% in 2019)
- 75% plan to achieve a higher standard of living than their parents
- 58% plan to open a deposit account through a desktop or mobile app
- 61% of banks in the same financial services organization as their parents
- “Improve the mobile channel” was their first choice when asked how to improve the customer experience.
- 85% are financially independent and 71% are employed full time
- Average of 114 interactions per month with their financial services organization – almost four times the average number of monthly interactions for baby boomers and 50% more monthly transactions than Gen Z and Gen X
- 55% are more concerned about fraud than they were a year ago; 15% are less concerned
- 85% would do banking transactions with a non-traditional bank such as Amazon, Apple or PayPal
- 79% have opened an online deposit account
- 84% are comfortable receiving financial advice through AI tools
- “Faster money transfers” were their first choice when asked how their banking application could be improved.
- “Faster Payments” was their first choice when asked how their banking application could be improved.
- 36% would share more personal information for better service
- 45% prefer banks and credit unions with branches, even if they don’t use them
- 53% said their savings had shrunk or had struggled to make ends meet since the start of the pandemic
- The “best rates” were the main reason they chose a leading financial services organization (all other generations chose the “lowest fees”)
- 76% said their financial services organization was doing enough to protect them from fraud and identity theft
- 71% would opt for a non-traditional bank such as Amazon, Apple or PayPal
- 27% would opt for a non-traditional bank such as Amazon, Apple or PayPal
- 63% prefer to open an agency deposit account – more than double of all other generations and more than four times the number of Millennials
- 89% trust their financial service provider and 88% agree it meets their needs
- 24% said their deposits increased during the pandemic – the most of any generation
- 31% have opened an online deposit account – the least of all generations
- 35% are comfortable receiving financial advice through AI tools