Which financial services customers bank on a great digital experience?

Which financial services customers bank on a great digital experience?

The findings of Mobiquity’s cross-industry customer loyalty survey points to two important insights for banks and credit unions:

1. Congrats! Our survey found your digital customer experience to be ahead of other industries, such as insurance and retail.
2. Don’t sit back and celebrate quite yet. A solid digital experience is table stakes in banking. With the sky-high expectations of up-and-coming customers, banks need to keep sharpening their digital edge. 

Let’s take a closer look at what we learned.

For most customers, digital banking is a fit

Across all industries surveyed, COVID-19 challenges served as a catalyst for digital adoption. Banking was no exception, with 49% and 39% of customers reporting increased use of banking mobile apps and websites, respectively. Uptake of mobile apps for banking was especially brisk among consumers aged 18 to 55. 

Across demographics, customers who’ve adopted digital banking agree it fits their lifestyle. More than three-quarters of those aged 18 to 55 and 68% of customers 56+ agreed with that sentiment. Only about one-third of customers prefer face-to-face interactions with their banks. That preference is slightly higher among older consumers (cited by 33%) vs. their younger counterparts (29%). 

Customers are relatively satisfied with digital banking

Looking across industries – including insurance, healthcare, and retail – customers’ satisfaction is relatively high with digital banking. More than 80% reported being somewhat or very satisfied with their digital experiences with checking (86%) and savings (81%) accounts. 

By contrast, customers expressed lower levels of satisfaction with the digital experience for their auto (77%) and homeowners (68%) insurance. Seventy percent reported being somewhat or very satisfied with using a smart watch to monitor their health. A slightly smaller percentage (67%) reported satisfaction with telemedicine appointments, and satisfaction was lowest for convenience store mobile apps (53%).

What drives loyalty?

Despite high satisfaction, Mobiquity’s survey uncovered willingness to switch banks, which should be of some concern. In fact, 37% of respondents said they’re more likely to make a jump now than in the past. Nearly half (48%) said they would consider switching based on positive online reviews; 40% would jump for better digital features.

Our study also found that the younger consumers are more open to switching than older customers. That holds true for checking (25% vs. 11%), savings (23% vs. 13%), investment (26% vs. 16%), and mortgage (33% vs. 18%) accounts. 

Among banking customers, the top driver of switching is better account terms (cited by 61%), followed by an easier-to-use mobile app (33%) and digital identity verification (32%). And younger consumers are more likely to be swayed by better digital tools and apps.

For older customers with a larger number of accounts and a higher base of assets, loyalty may be partly a function of inertia. It’s easier for younger, more up-and-coming customers to make a leap, which may help explain greater willingness to switch. 

But don’t write off those younger consumers or the importance of serving them well. This cohort will be the older, more established customers of the not-so-distant future – and that means every bank needs to be doubling down on a digital experience that will attract their business and bolster their loyalty for the long haul. 

Ready to explore digital tools for banking? Let’s talk.