PwC’s 2019 Consumer Digital Banking Survey comes as the industry is still learning how to solve the banking needs of younger and tech-savvy consumers. Our initial review of the data shows great variety in age-related differences, how consumers define their primary bank relationship, and where consumers find trust with their banking needs.
These are just a few initial takeaways from our latest annual Digital Banking Survey, where we asked approximately 5,000 people about their banking, borrowing, payment, and investment habits.
Do banks and customers agree on the definition of a primary bank relationship? It depends on whom you ask, according to this year’s survey. We saw greater age-related differences not only in primary bank selection, but also in how consumers define their primary bank.
Financial institutions are beginning to recognize that solving banking needs means catering to different generations. Considering that banks spend about $350 per account in annual costs, understanding what forms the nucleus of the bank-consumer relationship at a micro level can influence profitability over the longer term. That’s especially true when considering that digital products reduce switching costs for consumers.
Securing a customer doesn’t mean a bank will automatically win that customer’s next account. In fact, consumers suggest that they are just as likely to open their next account with a new bank as they are with their existing bank. Customer expansion has always been easier than customer acquisition. Yet, whether it is because of today’s more fickle consumer or lower switching costs, the trend increasingly requires banks make relentless efforts to earn and maximize customer lifetime value.
Of respondents plan to open a deposit account this year, including 46% of Gen Zers and 26% of millennials.
Likely won't do so with the bank they currently use.
Increase in segments who place more importance on experiential factors than rates since 2015.
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Principal, FS Digital and Customer-Driven Transformations, PwC US
Greta Lovenheim Capps
Director, Financial Services Analytics, PwC US