New research from MX Technologies Inc., a Lehi-based open finance platform, found that more than half of U.S. consumers have either opened a new account (23 percent) or considered switching to a new bank (28 percent) in the past six months.
The top reasons why people switched include better service, higher savings rates, more convenience or lower interest rates.
MX’s survey of 1,053 American adults reveals which factors most influence where consumers choose to deposit their money and manage their finances, as well as expectations for personalized experiences. Key findings include:
Tech companies won’t{mprestriction ids="1,3"} overtake banks any time soon. Only 3 percent of consumers said they would trust tech companies the most to securely manage their financial data. And, 38 percent say it is unlikely they would leverage a technology company to manage their finances or hold their money.
Trust is on the rise and tops the list of influence factors in deciding where to bank. Fifty-eight percent of respondents ranked the level of trust they feel regarding a provider as one of the most important factors in choosing a financial services provider. Forty-four percent said they trust their financial providers more than they did six months ago.
Financial providers are falling short in helping consumers. One-third (33 percent) of consumers feel financial providers don’t do enough to support their financial needs. Half of consumers expect their financial providers to deliver personalized offers for tools, products and services to help them reach their financial goals.
Consumers are willing to exchange personal information for a better experience. In fact, 39 percent of consumers say they are likely to provide access to their financial transaction history to receive more personalized offers and services from a retailer or restaurant that they frequently visit.
Pay-by-bank will win if consumers do. More than half of consumers (55 percent) said they would likely pay directly from a checking account rather than using a credit or debit card if there were an incentive.
National banks are most trusted to securely manage financial data. When asked which organization they would trust most to securely manage their financial data, national banks (50 percent) are the most trusted, followed by credit unions (19 percent) and local or regional banks (10 percent).
Consumers are split on financial providers as a trusted partner or storage place. Fifty-five percent of consumers agree they see their financial provider as a partner in helping them reach their financial goals while 53 percent of consumers agree they see their financial provider as just a place to store their money.
“Our research shows the trust is there but the experiences consumers expect are not,” said Crystal Anderson, vice president of product at MX. “Banks, credit unions and other financial providers have a huge opportunity to grow their businesses and increase customer engagement by focusing on personalized money experiences that give consumers the tools, services, guidance and rewards they want and need.”{/mprestriction}
