By FintechNews staff
–NCR Corporation today shared results from its recent survey conducted online by The Harris Poll. More than 2,000 U.S. adults, among whom more than 1,800 have a primary financial institution (referred to as banking customers throughout), were surveyed around their banking relationships and preferences.
Key findings from the survey include:
–Nearly 2 in 5 banking customers (39%) have considered leaving their primary financial institution (FI) over the past 12 months, this jumps to 64% among millennial banking customers (ages 18-34). Financial institutions currently face an unprecedented level of competition. Although traditional institutions still benefit from trust equity, that alone won’t be enough to retain loyalty with millennials and Gen Z; these groups require intuitive digital-first experiences
–More than half of banking customers (59%) have banking relationships with more than one financial institution outside of their primary FI. Banks and credit unions no longer only compete with the institution down the block but also with nontraditional threats like neobanks, big techs and fintech providers. –
-78% of Americans would rather use an FI than a tech company for personal finance management (PFM) capabilities, 73% of Americans would rather use an FI than a tech company for Buy Now, Pay Later services (BNPL). It’s become critical for banks and credit unions to have the modern architecture in place to offer new capabilities more quickly and leverage strategic partnerships more easily. Customers expect instant access to emerging capabilities and services, such as PFM tools, BNPL and embedded platform payments. Institutions that embrace cloud technology and API connectivity will be able to broaden their offerings with agility and form stickier customer relationships.
-“These survey findings really underpin the increasing urgency for banks and credit unions to embrace a digital-first mindset; that doesn’t mean digital-only, but rather digital everywhere,” explained Douglas Brown, president, Digital Banking, NCR Corporation. “Customers want to continue relying on their proven and trusted institution, but if those banks and credit unions can’t modernize their approach to customer engagement, hyper personalize interactions and quickly innovate, they risk failing to keep up with emerging competition. Now more than ever, financial institutions need to embrace modern software and services to protect and grow relationships.”
