Less Is More: Are Consumers Ready to Consolidate Financial Lives?

MX’s research shows evidence that consumers are simplifying and consolidating their financial lives by reducing the number of financial accounts, providers, and apps they have. 

However, while they may be seeking to reduce the number of financial accounts and providers they use, this doesn’t mean they will settle for less when it comes to exceptional experiences and outcomes. 

Consumers Consolidating Financial Accounts and Providers

MX’s previous research detailed how consumers are consolidating the financial apps on their phone. Similarly, MX’s latest consumer research of 1,000+ U.S. consumers shows most consumers only have 1 to 2 financial accounts (46%). 

But, it’s not just the number of accounts that consumers are consolidating. When asked how many financial providers with which they hold accounts, 61% say just 1 to 2 financial providers. This is a 10-point increase in the past 2 years, showing more evidence that financial account consolidation is on the rise. 

As consumers continue to consolidate to a few key accounts and providers that best meet their needs, financial institutions need to prioritize how they effectively leverage data to drive better outcomes for consumers.   

Prioritizing Data-Driven Experiences and Insights

Our previous research shows most consumers would give their financial provider access to more of their data if they knew it would result in a better experience. In fact, 82% of consumers expect their financial providers to use their data to offer some kind of personalization including: 

• Proactive reminders about actions to take (45% of consumers want this)
• Targeted offers for new products and services that meet their needs (43%)
• Personalized insights about their spending habits (30%)

However, many financial providers still struggle to leverage data effectively. In fact, 30% of consumers agreed they often see messages from their financial provider that are not personalized or relevant for them. 

Finding the Best Financial Fit: Consumers Embrace Frequent Account Openings

On average, more than 1 in 4 consumers open a new financial account at least once per year. This is even higher among younger generations. 

Why? Many consumers are likely to open new accounts or switch their direct deposits at key moments in their lifetime. From moving to a new city to starting a new job, consumers look for financial providers that can meet them where they are. 

Today’s consumers want less complication but more personalization, more insights, and more support to reach their financial goals. And, they’re quick to open new accounts when the occasion calls for it. 

Check out MX's latest research report for more insights into what consumers expect from financial institutions today.