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LOYALTY IN FINANCIAL SERVICES - US - DECEMBER 2017

Published By :

Mintel

Published Date : Dec 2017

Category :

Banking

No. of Pages : N/A

Loyalty is more than just a rewards program. It is not built on incentives, but on trust, something that is in relatively short supply in the financial services industry. Thinking about what consumers want and then building the tools to give it to them will go a long way toward developing and retaining a loyal customer base. Quality customer service, too, will help customers feel good about doing business with their provider and make it more difficult for them to switch to another option.

Table of contents
OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Satisfaction is high, recommendations are low
Figure 1: Would recommend provider to others, by type of provider, September 2017
Most want a branch close to home
Figure 2: Important features in a bank or credit union, by gender and age, September 2017
Trust is important to building loyalty
Figure 3: Attitudes toward loyalty, by generation, September 2017
The opportunities
Hispanics are less likely to have any financial accounts
Figure 4: Account ownership, by Hispanic origin, September 2017
Half of parents need life insurance
Figure 5: Account ownership, by parental status, September 2017
Expand online and mobile capabilities
Figure 6: Important features in a financial service provider, by generation, September 2017
What it means
THE MARKET WHAT YOU NEED TO KNOW
Number of institutions continues to decline
Growth of alternative institutions
MARKET FACTORS
Number of institutions continues to decline
Figure 7: Number of banks and credit unions, 1997-June 30, 2017
Growth of alternative institutions
Figure 8: Attitudes toward online/mobile services, by gender and age, June 2017
KEY PLAYERS WHAT YOU NEED TO KNOW
Most are satisfied with their FSIs
Trust is still a concern
Many wouldnt recommend their provider
Growth of AI
Branch evolution
WHATS WORKING?
Most are satisfied with their FSIs
Figure 9: Satisfaction with financial services institutions, September 2017
WHATS STRUGGLING?
Many wouldnt recommend their provider
Figure 10: Would recommend provider, by type of provider, September 2017
Trust is still a concern
Figure 11: Attitudes toward loyalty, by generation, September 2017
How do consumers define trust?
WHATS NEXT?
Growth of AI
Branch evolution
WHAT ARE CONSUMERS SAYING ABOUT BRANDS?
Negative comments outweigh positive comments
Figure 12: Trusted brands, September 2017
Positive comments:
Negative comments:
THE CONSUMER WHAT YOU NEED TO KNOW
Low fees and convenience are most important
Money market customers want more
Young men are especially vulnerable
Rates are the most common reason for switching
Older customers rely on trust; younger customers want incentives
Banks need to work to keep young Hispanic customers
ACCOUNT OWNERSHIP
Money market owners have more different accounts
Figure 13: Account ownership, by accounts owned, September 2017
Figure 14: US Bank cross-selling mobile ad, 2015
IMPORTANT FEATURES IN A BANK OR CREDIT UNION
Low fees and convenience are most important
Figure 15: Important features, September 2017
Easy access is more important to parents
Figure 16: Important features, by parental status, September 2017
Money market customers want more
Figure 17: Important features, by type of account owned, September 2017
Figure 18: Valley National Bank email ad, 2017
What do consumers want?
Figure 19: SELCO mobile ad, 2017
Making customers feel valued is crucial
TURF ANALYSIS
Methodology
Figure 20: TURF analysis Important features in financial services provider, September 2017
SWITCHING BEHAVIOR
Young men are especially vulnerable
Figure 21: Switched banks/credit unions, credit cards, or investment company, by gender and age, September 2017
Nearly one quarter of young Hispanics have switched banks or credit unions
Figure 22: Switched banks or credit unions, by Hispanic origin, September 2017
Millennials are most likely to switch investment companies
Figure 23: Switched investment companies, by generation, September 2017
Millennials most at risk to switch insurance provider
Figure 24: Switched auto, homeowners/renters, life insurance, by generation, September 2017
Parents are twice as likely to switch auto insurers
Figure 25: Switched auto insurance providers, by parental status, September 2017
Rates are the most common reason for switching
Figure 26: Reason for switching financial services provider, by type of provider, September 2017
Figure 27: State Farm mobile ad, 2017
Men want better technology
Figure 28: Reason for switching financial services provider, by gender, September 2017
Trust is an issue for parents
Figure 29: Reason for switching financial services provider, by parental status, September 2017
ATTITUDES TOWARD LOYALTY
Older customers rely on trust; younger customers want incentives
Figure 30: Attitudes toward loyalty, by generation, September 2017
Figure 31: Barclaycard online ad, 2017
Banks need to work to keep young Hispanic customers
Figure 32: Attitudes toward loyalty, by Hispanic origin and generation, September 2017
Older consumers most likely to recommend insurance providers
Figure 33: Attitudes toward loyalty, by generation, September 2017
APPENDIX DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations

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