As millennials reach an age where they are making significant banking decisions, a recent survey by Computer Services, Inc. suggests that financial institutions should offer dual services: competitive technology options to attract new customers and high-quality customer service to retain them.
CSI’s survey garnered responses from nearly 2,100 U.S. adults ages 18 and older. According to the results, 50% of consumers said that a financial institution’s technology offerings were a key factor in selecting where they bank. For males under the age of 35, this percentage jumped to 65%. (The survey was conducted on behalf of CSI by Harris Poll.)
“We’ve reached the tipping point where at least half of adults expect and demand innovative solutions for their banking needs,” says Steve Powless, CSI’s CEO. “While the exact mix of technology offerings will vary for each bank’s demographics, top areas include additional mobile banking options, peer-to-peer payments, and next-generation card security like EMV.”
Person-to-person ranks highest
While new technology increasingly brings consumers into banking relationships, customer service is still the top factor in retaining customers. The survey found that 79% of consumers consider customer service as the most important aspect of their banking relationship.
Although this percentage varies slightly with age—75% of adults under 35, and 86% of adults over 65—service far outpaced any other factor in the survey.
“It’s no surprise that customer service is the most important aspect in a customer’s relationship with his or her bank,” Powless says. “But as banks move toward the future, they must continually redefine what exemplifies ‘great service.’ It may not be in-person encounters at a branch, but rather a smooth mobile banking experience and the ability to receive help no matter how they choose to interact with the bank.”
Financial privacy tops consumer list
Other survey results include:
• 80% of consumers cited a financial institution’s ability to ensure the safety of their financial information as their greatest concern, regardless of demographic.
• 60% of consumers under the age of 55 preferred to bank online, whereas that percentage dropped to 48% for older demographics.
• 55% of respondents said they first check loan rates with their primary financial institution before shopping around.
Download executive summary of CSI’s 2015 Consumer Survey Report [Registration required]
- The Future of Retail Banking—Are Your Frontline Employees Ready?
- Banks Face PPP Investigations, Lawyers Warn
- The $30 Trillion Trust-Fall: Reaching Millennials Amid the Great Wealth Transfer
- PayPal Enters Point-of-Sale US Payments Market
- From Advice to Action: Banks’ Evolving Role in Financial Guidance