Picture two banking customers: one a recent college grad who’s never known life without the internet, the other a recent retiree who grew up using rotary phones.
Of the two, which one is more likely to prefer using digital-only banking tools?
Conventional wisdom says the younger person. That’s been the narrative, after all: millennial and Generation Z consumers jettisoning traditional financial institutions (FIs) in favor of FinTech offerings.
However, one survey showed that respondents younger than 35 prefer a hybrid of digital and in-person banking, while older respondents said they are more likely to prefer using only digital banking tools.
The same survey found that 44% of respondents who consider their “financial savviness” as “expert” increased their use of digital banking tools in 2021 compared to 2020, while less than 25% of those who labeled themselves “savvier than most,” “somewhat savvy” or “not financially savvy” said they are embracing digital payment platforms.
And 40% of respondents said digital banking tools are helping them regain control of their financial lives.
That isn’t to say customers are completely satisfied with their banks. Another survey found that as consumer financial stress levels have risen along with inflation, banks have fallen short in making their customers feel supported.
While overall customer satisfaction with retail banks rose 155 points on a 1,000-point scale when customers received this support, just 44% surveyed said they thought their banks had delivered in this area.
Banks did well on traditional customer engagement metrics, such as people, digital channels and overall trust, although satisfaction scores were lowest when it came to helping consumers with their top priorities of saving time or money.
But banks have an opportunity to increase satisfaction by meeting consumers’ demands; 46% of customers said they want help avoiding fees, while 37% want to receive account alerts.