With the use of banking and other financial apps on the rise, Credit One Bank conducted a survey this past July to learn more about the usage of its mobile app. Over 1,400 card members responded to a variety of app-related questions, including what they like most about the bank’s app. The convenience it provides was the top response (selected by 57% of respondents) outranking the fact that it’s a free download, which came in a distant second, by a factor of over 3.5.
Banks’ huge investments in innovation may not yet be on the mark in creating experiences their customers want, according to new research from Genpact. The survey shows that customers want both the convenience of new technology and the personal service they’re used to with traditional channels, underscoring challenges that financial institutions face in achieving return on investment from digital transformation initiatives.
The most recent Insight Summary Report from Mercator Advisory Group’s CustomerMonitor Survey Series reveals that mobile banking is growing rapidly in the United States. According to the report, titled Digital Banking: Improvements Needed to Compete with Fintech, 64% of U.S. consumers with at least one account at a bank, credit union, or other financial institution perform mobile banking activities, but they are more likely to banking via their mobile device using the financial institution’s website than a mobile banking app.
More Americans than ever plan to hold on to their tax refunds this year rather than spending the money they get from the IRS, according to the annual tax refund survey released by the National Retail Federation and Prosper Insights & Analytics. This is good news for banks and credit unions!
Digital technology isn’t just impacting the advertising world. The banking industry is expected to undergo a significant shift as operators roll out more digital services and shutter the traditional branch and teller business model. These changes will drive competition, mergers and acquisition, and bring about the need for significant advertising expenditures according to a new Accenture Research survey: Banking in the Digital Era.
According to a new study from Scarborough, 10% of American adults are Atypical Bankers – either Superbanked or Unbanked. Unbanked consumers are 11% more likely than all U.S. adults to be women and 38% more likely to be unmarried. Understanding the Superbanked and Unbanked consumers’ needs can help financial institutions and marketers understand the opportunity that exists from both the consumer in need of assistance with their complicated portfolio, as well as the consumer who is not currently engaged with a bank for their money management needs.
Some banks are beginning to test alternative financial services products and reevaluate their product offerings in order to reach the population of underbanked and unbanked Americans, according to new research by Packaged Facts. According to the FDIC, 9 million households are unbanked (8% of all U.S. households.) These are households that may buy money orders or remit funds to families abroad, but use financial services marketers sparingly and resist efforts to deepen their relationships with traditional banks.
According to new research, debit card programs alone aren’t likely to foster customer loyalty, as nearly half of respondents who participate in a debit rewards program have never redeemed their points. As banks eliminate debit rewards programs as a result of changing legislation, new research from Mintel analyzes consumers on their debit reward behavior and attitudes. Survey respondents are segmented into three groups: heavy (redeem about once a month), medium (redeem every few to every six months) and light (redeem once a year) redeemers.
The retail banking sector has been struggling since the start of the Great Recession. These institutions are facing higher operating costs and a consumer base that is not increasing its demand for banking services, especially higher debt. In addition, the marketing paradigm has changed for banks.
The Ad-ology Marketing Forecast video briefing is designed for strategic marketers: Ad agencies, in-house marketers, media buyers+sellers, business owners. Every month it features industry forecasts and trends from a variety of top sources, plus exclusive data from Ad-ology Research. The June 2011 Ad-ology Marketing Forecast features: Exclusive: Future New Car Buyers Financial Services Loyalty Marketing
Consumers are changing the way they do their banking. In the past 5 years, more consumers have switched to their bank’s online capabilities to handle routine transactions. And the number of consumers accessing bank services via mobile phones is growing. However, consumers are not quite ready to give up their visits to traditional bank centers for important transactions. All of these changes in consumer behavior are leading banks to market themselves in new ways.
Read the 10-K report published by any number of major CPG manufacturers in the U.S. and you’ll likely see Walmart listed as a significant customer, often accounting for 10% of annual revenue. The retail giant operates over 4,000 retail sites in this country and looms large in the shopping plans of consumers at all demographic levels. The company has changed the very nature of retailing CPG and groceries. In the past two years, the company has started branching into a new market: financial services.