More Than 8 in 10 Satisfied With Their Bank, but Many Say They’d Go Elsewhere for More Relevant Products, Services

More Than 8 in 10 Satisfied With Their Bank, but Many Say They’d Go Elsewhere for More Relevant Products, Services

In fact, 45% open to paying a monthly fee for unlimited offerings that match their interests
Mobile financial apps

The number and types of products and services that consumers want from financial institutions may be expanding faster than traditional banks can handle.

A survey from Fair Isaac Corp. — known for FICO Scores — found that even though 86% of respondents were satisfied with their banks, a large majority (70%) said they’d be likely or very likely to use a competitor that had more appropriate products and services.

While banks continue to be go-to providers of traditional products like checking and savings accounts, customers appear willing to use non-bank providers for other financial needs, ranging from career advice to bill negotiation services.

Changes among banking customers — and what’s driving it

More than a third (34%) of respondents said they’re already using a non-bank financial services provider, such as a fintech (like Chime or Ally) merchant or technology company. Going further, that figure jumps to 47% among millennials.

One problem could be that banks aren’t addressing consumers’ emotions connected to finance. The FICO survey found high levels of stress about money affected more than two-thirds (68%) of customers, and suggested this uncertainty may be driving customers to non-bank providers.

Among specific desires that consumers said they’d pay for include assistance with:

  • Negotiating money situations (29%)
  • Self-driving budgeting and investing (27%)
  • Advice on big-spending decisions (27%)
  • Tips on getting a raise at work (25%)
  • Weekly emails on dealing with status anxiety, social media and the urge to compare themselves with others (21%)

In fact, 45% would pay a monthly fee to have unlimited access to these new products and services. And while 50% would rather get them from their current bank, 70% would be willing to go elsewhere.

A DepositAccounts survey from August 2020 found that 91% of Americans had banked virtually over the prior 30-day period, so how traditional banks meet these desires will have a big role in where customers go from here.

High-stakes tussle to provide financial services

The tussle to be the main provider of financial services to consumers is a high-stakes one. Close to 95% (about 124 million) of households have bank or credit union accounts, according to a 2019 survey from the Federal Deposit Insurance Corp. (FDIC). Relatedly, just over 5%, or 7.1 million households, don’t have bank accounts, the survey found.

The dollars involved are of similar magnitude. According to FICO, $252 billion in payments are already going through non-bank payment systems.

Methodology: Cornerstone Advisors and Nonfiction Research surveyed 1,002 consumers over a one-week period.

Mark Henricks is a freelance journalist who reports on personal finance, small business, real estate and other topics from Austin, Texas.