New MX Research Shows 1 in 4 Consumers Want Financial Providers to Do More to Support Fina...
January 18, 2023 | 2 min read
New report shows 23% of consumers have opened a new bank account in the past 6 months; Additional 28% considering a switch to a new bank
Only 3% of consumers said they trust tech companies the most to securely manage their financial data; National banks most trusted by half of consumers
Fifty-eight percent of respondents ranked the level of trust they feel as one of the most important factors in choosing a financial services provider
LEHI, Utah – July 25, 2023 – MX Technologies, Inc., a leader in Open Finance, today released its latest consumer research, which unveiled that more than half of U.S. consumers have either opened a new account (23%) or considered switching to a new bank (28%) in the past 6 months. Top reasons why people switched include better service, higher savings rates, more convenience, or lower interest rates.
MX’s latest survey of 1,053 American adults reveals which factors most influence where consumers choose to deposit their money and manage their finances, as well as expectations for personalized experiences. Key findings include:
Tech companies won’t overtake banks any time soon. Only 3% of consumers said they would trust tech companies the most to securely manage their financial data. And, 38% say it is unlikely they would leverage a technology company to manage their finances or hold their money.
Trust is on the rise and tops the list of influence factors in deciding where to bank. Fifty-eight percent of respondents ranked the level of trust they feel regarding a provider as one of the most important factors in choosing a financial services provider. Forty-four percent said they trust their financial providers more than they did 6 months ago.
Financial providers are falling short in helping consumers. One-third (33%) of consumers feel financial providers don’t do enough to support their financial needs. Half of consumers expect their financial providers to deliver personalized offers for tools, products and services to help them reach their financial goals.
Consumers willing to exchange personal information for a better experience. In fact, 39% of consumers say they are likely to provide access to their financial transaction history to receive more personalized offers and services from a retailer or restaurant that they frequently visit.
Pay by Bank will win if consumers do. More than half of consumers (55%) said they would likely pay directly from a checking account rather than using a credit or debit card if there was an incentive.
National banks are most trusted to securely manage financial data. When asked which organization they would trust MOST to securely manage their financial data, national banks (50%) are the most trusted, followed by credit unions (19%) and local or regional banks (10%).
Consumers split on financial providers as a trusted partner or storage place. Fifty-five percent of consumers agree they see their financial provider as a partner in helping them reach their financial goals while 53% of consumers agree they see their financial provider as just a place to store their money.
“Our research shows the trust is there but the experiences consumers expect are not,” said Crystal Anderson, Vice President of Product at MX. “Banks, credit unions, and other financial providers have a huge opportunity to grow their businesses and increase customer engagement by focusing on personalized money experiences that give consumers the tools, services, guidance, and rewards they want and need.”
To access the full report, please visit https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/.
You can also register to join our Innovation Forum on Wednesday, July 26 at 9:00 a.m. PT to hear the key findings and more.
MX Technologies, Inc., a leader in Open Finance, helps organizations everywhere connect to the world's financial data and turn raw, unstructured data into their most valuable asset to deliver intelligent and personalized money experiences. MX connects more than 13,000 financial institutions and fintechs providing the industry's most reliable and secure data connectivity network. Additionally, MX powers 85% of digital banking providers, as well as thousands of banks, credit unions, and fintechs, with a combined reach of over 200 million consumers. To learn more follow us on Twitter and LinkedIn @MX or visit www.mx.com.
About the Survey
This survey of 1,053 American adults was conducted by MX in June 2023 using the online survey platform. Results included an even split in responses across each generation: Baby Boomers (25%), Gen X (25%), Millennials (25%), and Gen Z (25%). The respondents were also evenly split between male and female (50% each), as well as White and non-White (Asian, Black, Hispanic, or Other).
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