By Shiva Sharif, Executive Director, Insights & Activation Solutions at Resonate
In 2023, as many as 13.6 million Americans are considering switching banks. In an industry built on long-term relationships, that’s a lot of potential upheaval in an industry that’s already experienced a tremendous amount of disruption.
So what can bank marketers and other financial brands learn from these customers who have at least one foot out the door with their current bank? Who are they, and what’s motivating them to sever what has historically been a long-term (if not life-long) brand relationship? Let’s take a look at what the most recent insights from the Resonate Banking data set tell us about the shifting loyalty of today’s consumers.
Who’s Planning to Switch Banks in 2023?
The 13.6 million Americans who are considering switching banks in 2023 represent about 6.1 percent of the population. Of these, about 2.4 million are fully confirmed that they will be switching, while the other 11.2 million are still on the fence.
From a demographic standpoint, more than half (54 percent) are men, 57 percent are married, and 57 percent have children. About a third (29 percent) are between the ages of 25 and 34, and a third have attended some college.
When it comes to hobbies and daily routines, these bank switchers are more likely than the average American to eat high-protein foods and value athletic accomplishments. They belong to teams and take classes, they enjoy music, and they play video games. From a media standpoint, they spend their time on social platforms including Twitch, TikTok and Reddit. They consume most of their content through smart TVs, and their favorite streaming services are Discovery+, Disney+ and HBO Max.
How Will They Change the Banking Playing Field?
According to Resonate’s recent analysis, the banks that are scheduled to lose the most customers in 2023 are Fifth Third, Citi, Ally, TD Bank and PNC Bank. Meanwhile, the banks most likely to gain from switching activity include Capital One (17 percent), Chase (15 percent), Bank of America (11 percent) and Wells Fargo (10 percent). Notably, “other banks” (i.e., smaller brands not listed by name in our survey) are the ones expected to gain the most banking customers thanks to switching activity (27 percent).
Beyond who they are, perhaps the most important thing for financial marketers to understand is what’s motivating these individuals to switch. According to our data, the top motivating factors are:
● Lower rates and fees (27 percent)
● Better online and mobile banking services (24 percent)
● More convenient locations (22 percent)
What preferences and services are they looking for? Here are the top considerations:
● Mobile banking service (26 percent)
● Bonus for opening a new account (18 percent)
● Loan availability (9 percent)
● Loan interest rates (9 percent)
These are the types of insights financial marketers need in order to understand and connect with not only customers who are considering leaving their current banks, but also current customers who are satisfied today—but might not be tomorrow. Importantly, marketers must be able to track shifts in these types of insights over time.
Gone are the days when marketers could build a plan in Q1 and follow it step-by-step through Q4. These days, marketers are speaking to a customer whose sentiment is changing with each breaking news story. From the economic upheaval to political unrest, customers have faced a barrage of life-altering events in recent years. That’s why financial brands’ strategies must be agile to adapt and enable them to meet customers and prospects where they are now.
It’s never been more important for bank marketers to forge deep connections with their customers that withstand these tumultuous times. Acquiring, growing and retaining customers is a financial brand’s lifeblood. But to be successful at driving growth and customer lifetime value today, marketers need the freshest, deepest data available—and it has to be actionable.
About the Author
Shiva Sharif is Executive Director of Insights & Activation Solutions at Resonate, the leading provider of AI-powered consumer data and intelligence.