2017 Connected Banking Customer Report

Insights into the Expectations of Today’s Retail Banking Customers
Explore

Introduction

Transforming the Banking Experience

To explore the current attitudes and habits of today’s retail banking customers in both the United Kingdom and United States, Salesforce conducted its “2017 Connected Banking Customer Report.” The research was based on responses from more than 2,000 adults in the U.S., among whom 1,809 currently have a checking or savings account, and over 1,000 adults in the U.K., among whom 973 have a checking or savings account.

The research found that customers are relying both on physical branches and digital methods to perform routine banking tasks. Additionally, fintech companies seem to be disrupting the banking industry in several ways, providing customers—particularly millennials—new methods to borrow, lend, and manage their money. Lastly, customers across both countries reported a lack of trust in financial services companies amidst a year of political and economic change.

Chapter One

How U.S. Customers Engage with Banks Today

While Americans across all age groups who use financial institutions primarily deposit their money in checking (94%) and savings accounts (75%), Gen Xers (ages 35–54) and baby boomers (age 55+) are more apt to have mortgage loans (46% and 37%, respectively) than (ages 18–34) millennials (20%). Perhaps reflecting a lack of trust overall, one in five millennials (21%) do not leverage any financial institution to address their financial needs, compared to just 6% of baby boomers and 9% of Gen Xers.

Mobile banking also appears to be the way of the future, with nearly one-third of millennials with a checking or savings account (31%) stating that they leverage their bank’s mobile app for most routine transactions such as deposits and transfers, compared to just 17% of Gen Xers and 6% of baby boomers. While banks continue to make it easier to perform routine tasks online and via mobile devices, customers of all ages continue to rely on visiting bank branches with 58% of Americans saying that they have walked into a bank branch in the last four weeks.

How many different financial institutions do you currently use to address your overall financial service needs? (e.g., banks, wealth management firms, pension providers, ISA custodians)

Base: Total US Respondents

  • Millenials
  • Gen Xers
  • Baby Boomers
0
1
2
3
4
5+

Which of the following types of accounts do you currently have? Select all that apply.

Base: Use Financial Institutions

  • Millenials
  • Gen Xers
  • Baby Boomers
Checking Account
Savings Account
Money Market
CD
Line of Credit
Mortgage Loan
Home Equity Loan
Other

What is the main way you currently perform routine transactions (e.g., deposits, transfers, bill payments) with your bank?*

  • Millenials
  • Gen Xers
  • Baby Boomers
ATM
Teller
Email
Mobile App
Mail
Website
IM/Chat
Phone
Personal Banker/Advisor in Branch
Other

When was the last time you walked into a physical bank branch?*

Today
In the past week
2-4 weeks ago
2-6 months ago
7-12 months ago
More than 12 months ago
Not at all sure

Which of the following statements are true for you? Select all that apply.*

  • Millenials
  • Gen Xers
  • Baby Boomers
My bank’s employees (in branch, online, phone) are able to access my client history and account summaries to provide more personalized service.
My bank has visibility into my financial accounts outside of their institution (i.e., accounts with other banks/financial services companies).
My bank’s tellers and employees have tablets/mobile devices in branches.
I have my bank’s mobile app on my phone/tablet.

What is the main way you currently perform the following tasks with your bank?*

  • ATM
  • Teller
  • Email
  • Mobile App
  • Mail
  • Website
  • IM/Chat
  • Phone
  • Personal banker/advisor in branch
  • Other
  • N/A—have not performed this task.
(1/7) Routine Transactions (e.g. deposits, transfers, bill payments)
(2/7) SEEK ADVICE ON ACCOUNTS/SERVICE NEEDS
(3/7) SEEK ADVICE ON INVESTMENTS/MONEY MANAGEMENT
(4/7) SHARE DOCUMENTS (E.G., TAX FORMS, PAY STUBS, TAX RETURNS)
(5/7) COMPLEX REQUESTS (E.G., TRANSACTION DISPUTES, WIRE TRANSFERS)
(6/7) OPEN A NEW ACCOUNT
(7/7) SELECT/PURCHASE NEW BANKING SERVICES (E.G., LINE OF CREDIT, MORTGAGE, BUSINESS LOAN)

*Base: Has a checking or banking account (U.S.)

Chapter Two

Impact of Fintech on U.S. Retail Banking

Banking appears to be lagging perceptually when it comes to innovation, as 26% of millennials, 28% of Gen Xers, and 23% of baby boomers who have a checking or savings account strongly or somewhat disagree that the industry is innovating at the same pace as other industries such as healthcare or retail. This is likely why fintech companies are seizing the opportunity to disrupt traditional financial institutions, with 83% of millennials, 79% of Gen Xers and 62% of baby boomers* stating they have used payment services provided by fintech companies.

Perhaps even more telling is that 55% of millennials* prefer to do basic payment activities using a fintech firm vs. using similar services provided by their banks, highlighting convenience (56%) and ease of use (55%) as key reasons for this preference. And while the majority of millennials with a checking or savings account who have switched banks in the last five years have shifted to traditional large national banks (39%), a sizable portion (13%) have transitioned to digital banks, compared to only 1% of both Gen Xers and baby boomers.

Please indicate which of the following statements apply to you.*

  • Millenials
  • Gen Xers
  • Baby Boomers
I have switched banks in the last 5 years.

Which of the following are reasons why you switched banks in the past 5 years? Select all that apply.

Base: Have a checking or savings account and switched banks in the past five years.

  • Millenials
  • Gen Xers
  • Baby Boomers
Physical/electronic security of my assets
Financial stability of the bank
Security of my personal data
Has FDIC (Federal Deposit Insurance Corporation) insurance
Modern technology at physical branches (e.g., tablet-based applications for tellers, digital signage, iBeacons)
A bank with branches nearby
Rewards, benefits, or special rates
Variety of financial products sold (e.g., CDs, checking, savings, lines of credit, etc.)
Online capabilities (e.g., pay bills online, transfer money online)
Easy-to-use mobile app
Personalized customer service from tellers/other employees at bank
Offer private banking services (e.g. investment advice, retirement planning)

I prefer to do basic payment activities (e.g., transfer funds, pay bills, lend money) using a financial technology company’s services vs. using similar services provided by my bank.*

  • Millenials
  • Gen Xers
  • Baby Boomers
Strongly/somewhat agree
Somewhat/strongly disagree
N/A—I have never used any payment services provided by financial technology companies.

Why do you prefer to do basic payment activities via financial technology company services vs. using similar services provided by your bank? Select all that apply.

Base: Has a checking or savings account, has used payment services from a fintech company, and prefer fintech over bank services.

  • Millenial
  • Gen Xer
  • Baby Boomer
Convenient for my lifestyle
Easier to use
Faster service
Better mobile app
Better interface
Similar to other apps I use
Traditional banks are old fashioned
Other
Don't know

What type of bank did you switch to?

Base: Have a checking or savings account and switched banks in the past five years.

  • Millenial
  • Gen Xer
  • Baby Boomer
Digital bank
Traditional large national bank
Traditional large foreign bank
Regional/community bank
Credit union
A financial institution that provides banking services
Other

Which of the following banking features would you be interested in using if your bank offered them? Select all that apply.*

  • Millenial
  • Gen Xer
  • Baby Boomer
Virtual/branchless banking
Voice banking technology (i.e. the ability to make payments, report lost credit cards, setup account alerts, and answer a broad range of questions by speaking into your mobile device)
Block-chain technology for bank account security or encryption
Peer-to-peer lending services
Ability to bank in digital currencies
AI/robotic tellers in branches
AI/robotic service agents on the phone

Indicate how much you agree or disagree with the following statement: The banking industry is innovating at the same pace as other industries (e.g., retail, healthcare, technology).*

  • Millenial
  • Gen Xer
  • Baby Boomer
Strongly/somewhat agree
Somewhat/strongly disagree

*Base: Has a checking or banking account (U.S.)

Chapter Three

Banking and Consumer Trust During Volatile Times

Recent political and economic change, such as the U.S. presidential election and Brexit, clearly appears to impact millennials more than baby boomers, with 11% of U.S. millennials who have a checking or savings account saying they would change their banking practices as a result of Brexit or the U.S. presidential election results vs. just 2% of U.S. baby boomers. Trust, in general, seems to be an important consideration factor regardless of external environment, with approximately two-thirds of Americans who have a checking or savings account stating that financial stability (63%) and security of personal data (66%) are important factors when selecting a bank for their checking or savings accounts. That said, less than half of Americans who have a checking or savings account (48%) strongly agree that they trust their bank with their financial information, and only 26% strongly agree that their bank has their best interests at heart.

While the vast majority of Americans say that their bank proactively reaches out to them if their account is compromised (79%), far less say that their bank checks in with them around satisfaction with services (42%) or to provide recommendations on other services (56%).

Which of the following factors are important to you when selecting a bank for a checking/savings account? Select all that apply.*

A bank with branches nearby
Security of my personal data
Financial stability of the bank
Online capabilities (e.g., pay bills online, transfer money online)
Has FDIC (Federal Deposit Insurance Corporation) insurance
Physical/electronic security of my assets
Personalized customer service from tellers/other employees at bank
Rewards, benefits, or special rates
Variety of financial products sold (CDs, checking, savings, lines of credit, etc.)
Easy-to-use mobile app
Modern technology at physical branches (e.g., tablet-based applications for tellers, digital signage, iBeacons)
Offer private banking services (e.g. investment advice, retirement planning)
Other

Please indicate how much you agree or disagree with each of the following statements.*

  • Strongly agree
  • Somewhat agree
  • Somewhat disagree
  • Strongly disagree
I trust my bank with my financial information
My bank has my best interests at heart
My bank is financially stable

Does your bank proactively reach out to you…*

  • Yes
  • No
If your account is compromised (e.g., security breach, fraud)?
To provide recommendations on other services (e.g., credit cards, lines-of-credit)?
To understand your specific needs, goals and preferences?
To check in on whether you are happy with their customer service?
To give advice on how to get better rates or returns for your assets with them?

Please indicate which of the following statements apply to you.*

  • Millennial
  • Gen Xer
  • Baby Boomer
I am going to change my banking practices as a result of Brexit/U.S. presidential election results

*Base: Has a checking or banking account (U.S.)

Chapter Four

U.K. Customer Banking Trends in the Post-Brexit Era

Similar to Americans, U.K. consumers continue visiting their bank branches despite having access to new digital banking options—with 41% of U.K. survey respondents saying they go to their bank at least once a month. U.K. adults who have a checking or savings account also reported a trust gap with their banks, with less than one-third (29%) strongly agreeing that they trust their bank with financial information and only 15% strongly agreeing that their bank has their best interests at heart.

Finally, U.K. millennials are similar to their U.S. counterparts in embracing fintech upstarts, with 52% who have a checking or savings account stating they prefer to do basic payment activities using a fintech company’s services vs. similar services provided by their bank.

How many different financial institutions do you currently use to address your overall financial service needs (e.g., banks, wealth management firms, pension providers, ISA custodians)?

Base: Total UK respondents

0
1
2
3
4
5+

Which of the following types of accounts do you currently have? Select all that apply.

Base: U.K. respondents who use a financial institution.

Checking account
Savings account
Money market
CD
Line of credit
Mortgage loan
Home equity loan
Other

How often do you engage with your bank via a teller/cashier (in branch)?**

More than once a day
Once a day
Several times a week
Once a week
Several times a month
Once a month
Once every few months
Once a year
Never
N/A—My bank(s) do not provide this.

What is the main way you currently perform the following tasks with your bank?**

  • ATM
  • Cashier
  • Email
  • Mobile App
  • Mail
  • Website
  • IM/Chat
  • Phone
  • Personal banker/advisor in branch
  • Other
  • N/A—have not performed this task.
(1/7) ROUTINE TRANSACTIONS (E.G., DEPOSITS, TRANSFERS, BILL PAYMENTS)
(2/7) SEEK ADVICE ON ACCOUNTS/SERVICE NEEDS
(3/7) SEEK ADVICE ON INVESTMENTS/MONEY MANAGEMENT
(4/7) SHARE DOCUMENTS (E.G., TAX FORMS, PAY STUBS, TAX RETURNS)
(5/7) COMPLEX REQUESTS (E.G., TRANSACTION DISPUTES, WIRE TRANSFERS)
(6/7) Open a new account
(7/7) Select/purchase new banking services (e.g., line of credit, mortgage, business loan)

Please indicate how much you agree or disagree with each of the following statements.**

  • Strongly agree
  • Somewhat agree
  • Somewhat disagree
  • Strongly disagree
My bank is financially stable.
My bank is disconnected from channel to channel.(There’s no connection between activities done via phone, branch, online, mobile app.)
I trust my bank with my financial information.
I trust my bank to give me the right advice when it comes to my account and services.
My bank has my best interests at heart.
The banking industry is innovating at the same pace as other industries (e.g., retail, healthcare, technology).
My bank uses outdated technology (e.g., no mobile app, no virtual check deposit [taking photos of checks on phone], etc.).

Please indicate how much you agree or disagree with the following statement: I prefer to do basic payment activities (e.g., transfer funds, pay bills, lend money) using a financial technology company’s services vs. using similar services provided by my bank.**

  • Millennials
  • Gen Xers
  • Baby Boomers
Strongly agree
Somewhat agree
Somewhat disagree
Strongly disagree
N/A — I have never used any payment services provided by financial technology companies.

**Base: Has a checking or banking account (U.K.)

Conclusion

Methodology

​This survey was conducted online by Harris Poll on behalf of Salesforce from November 30 through December 02, 2016 among 2,052 adults ages 18 and older in the United States, among whom 1,809 have a checking and/or savings account and among 1,039 adults ages 18 and older in the United Kingdom, among whom 973 have a checking and/or savings account. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

For complete survey methodology, including weighting variables, please contact Annie Meenan at ameenan@salesforce.com.

See Salesforce for banking in action and discover how you can be the bank that customers love.