AUSTIN, TX--(Marketwired - Apr 16, 2014) - When shopping for a bank, Gen Y adults look for mobile tools, rewards programs and brand names more often than older generations, a new study finds.
The Consumer Banking Insights Study -- commissioned by BancVue on behalf of the more than 200 community financial institutions offering its Kasasa® brand of checking accounts and conducted online by Harris Poll in December 2013 among more than 1,000 U.S. adults (ages 18 and up) -- found that Generation Y adults (18 to 34 year olds) with a checking account are more likely to say mobile banking is at least somewhat important when choosing a bank (78 percent) than those in the 35-54 age group (66 percent) or those ages 55 and up (44 percent).
Members of Gen Y are also more likely to believe customizable rewards are at least somewhat important (86 percent versus 73 percent of 35-54 year olds and 63 percent of those ages 55 and up) and that cash back options are at least somewhat important (88 percent versus 74 percent and 67 percent, respectively). A recognizable brand name is also more important to Gen Y adults (81 percent say it's at least somewhat important) than it is to those ages 35-54 (68 percent).
"Gen Y adults are more likely to respond to brand name offerings," says Gabe Krajicek, CEO of BancVue. "With social media, endless searchable options and new non-bank players entering the banking space, the notion that the customer is king has never been more true than it is now."
While 72 percent of Gen Y adults say banking locally is at least somewhat important to them, roughly one-quarter of Gen Y adults who have a checking account but not with a CFI (23 percent) say they don't use a CFI because they don't believe a community bank or credit union will offer the same benefits they're getting at their current bank. Additionally, 30 percent of these Gen Y consumers say they don't use a community bank or credit union because they've never thought about it. The data suggests that community financial institutions (CFIs) will need to improve their product offerings and marketing efforts in order to attract the next generation of banking consumers.
"Attracting younger customers with rewards checking accounts and mobile offerings can help community banks and credit unions increase profits as well, by way of heightened non-interest income and increased account holder engagement and retention," said Krajicek.
About the Consumer Banking Insights Study
More than 200 community financial institutions offering BancVue's Kasasa brand of checking accounts teamed up to conduct the first Consumer Banking Insights Study. The study was executed online by Harris Poll on behalf of Kasasa from Dec. 26-31, 2013. The study polled 1,020 U.S. adults ages 18 and up to gauge their banking and checking preferences, feelings and behaviors. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online.
BancVue is a provider of innovative products, world-class marketing and data-driven consulting solutions to community financial institutions across the United States. Featuring offerings like Kasasa, a national brand of superior products and marketing scale, BancVue products are designed to deliver controlled new account growth, higher profitability and increased customer retention. Today, serving nearly 700 community banks and credit unions across the country, BancVue is empowering its clients to compete in and win the war against megabanks. For more information on BancVue, visit www.bancvue.com.