SOURCE: Claritas, Inc.

February 08, 2007 08:00 ET

Claritas Market Audit Data Shows Bank Loyalty on the Wane

Younger Bank Customers Outpace Other Age Groups in Not Maintaining a Primary Banking Relationship

SAN DIEGO, CA -- (MARKET WIRE) -- February 8, 2007 -- A new analysis of data from the Claritas Market Audit® shows that bank loyalty is apparently on the wane as the total number of households with no primary banking relationship jumped from 7.6 percent in 2005 to 10.6 percent as of Q3, 2006, with younger adult consumers leading the way. The Market Audit is a comprehensive survey of household financial behavior fielded by Integras, the advanced analytical services division of market research leader Claritas Inc.

For example, the 2006 numbers (broken down by age) showed that 12.6 percent of the so-called Generation Y (under 30 years old) households said they had no primary institution compared to other age groups, such as Generation X (age 30-39) at 11.4 percent, Seniors (70-plus years old) at 11.1 percent, Baby Boomers (40-59) at 10.4 percent and Empty Nesters (60-69) at 8.6 percent.

Integras Consultant Julie Pabich said that data for the analysis was developed from nearly 140,000 households that responded to the Audit, which, by design, allows respondents to define their primary institution, since different institutions have different ways of defining "primary" customers, such as number of accounts or balance levels.

No Primary Financial Institution

"In many respects, banking today is considered a commodity among consumers, especially younger ones, who are least likely to be loyal. The numbers, however, are going up across all age groups as people face a litany of promotions, and, as a result, have a lot of alternatives," said Pabich.

In fact, the numbers for 2006 were also up markedly compared to 2005 when Generation Y households were also out front at 9.4 percent, followed by Generation X at 8.3 percent, Seniors at 7.7 percent, Baby Boomers at 7.2 percent and Empty Nesters at 6.5 percent.

Elsewhere, of those respondents who reported having a primary institution, the majority across all age groups said they would "very likely" recommend it to a friend or relative, but of those, the lowest percentage was among the Generation X and Y groups at 53 percent and 54 percent respectively. The other age groups' results were:

--  Baby Boomers - 58.3 percent
--  Empty Nesters - 67.4 percent
--  Seniors - 67.8 percent
    
As for those who would be "very unlikely" or "somewhat unlikely" to recommend their primary institution to a friend or relative, the younger generation also led the pack with Generation Y at 6.8 percent and Generation X at 5.9 percent. The results from the rest of the field were:
--  Baby Boomers - 4.9 percent
--  Empty Nesters - 2.7 percent
--  Seniors - 2.8 percent
    
About Integras

Formed in January 2003, Integras provides high-end analytical consulting and advanced decision support for marketing and location strategy. A division of Claritas Inc., Integras combines sophisticated quantitative analysis with the broadest array of consumer and business data available in the United States to help companies make better strategic decisions. In addition to conducting four syndicated surveys (Insurance Audit, Market Audit, Convergence Audit and Restaurant Audit), the Customer Research and Targeting business unit of Integras conducts custom primary market research on behalf of their clients. For more information about these and other Integras services visit www.integrasconsulting.com.

About Claritas

Since 1971, San Diego-based Claritas has been the pre-eminent source of accurate, up-to-date marketing information about people, households and businesses within any geographic area in the United States. Its target marketing services are aimed at reducing the cost of customer acquisition and growing customer value. Claritas offers industry-leading consumer segmentation systems, consulting services and software applications for site analysis, advertising sales and customer targeting. Claritas is a division of the Nielsen Company, a global information and media company with leading market positions and recognized brands in marketing information (ACNielsen), media information (Nielsen Media Research), business publications (Billboard, The Hollywood Reporter, Adweek) and trade shows. To learn more about Claritas and Nielsen products and services visit their web sites at www.claritas.com and www.nielsen.com.

Contact Information

  • Contact:
    Stephen F. Moore
    Claritas Inc.
    (858) 677-9634
    Email Contact