Consumers Explore Services Beyond Primary Banks

Although traditional banks continue to dominate the market, they could risk losing their role as consumers’ primary provider due to gaps in digital innovation, according to Galileo.

The Galileo Consumer Banking report found that even though 85% of consumers reported positive experiences with their primary bank, consumers are seeking banking services elsewhere.

According to the report, consumers have taken to curating their own suite of financial services through multiple providers — a trend that is particularly prominent among Gen Z and Millennials.

These generations typically use more than six financial tools or services, half of which are used outside of their primary financial institution.

Meanwhile, 37% of consumers don’t agree that tools offered by their primary financial institution provider are tailored to their financial situation and 32% of respondents said their primary provider does not understand their needs or offer a personalized service.

This underscores the need for banks and credit unions to unlock and use customer intelligence to personalize offers and experiences for customers, according to Galileo.

The survey also revealed consumers favor DIY financial services as 60% of respondents reported they prefer to manage everything without human interaction and 42% of younger millennials have used a virtual assistant to conduct financial activities, which is more than any other generation.

Derek White, CEO of Galileo, said:  “Banks and credit unions of all sizes can embrace technology and unlock the data they already have to deliver timely, more relevant financial services at the customer’s point of need.”