Security and fraud protection are replacing “low or no fees” as the top reasons why consumers choose a new bank, according to a new survey of bank customers by the analytics firm Verint. The company polled more than 5,000 customers of the 20 largest U.S. banks earlier this year and found overall satisfaction with their banks had dropped since a similar survey in 2021, although a majority of banks still received high marks from respondents.
Asked what factors matter most when choosing a financial institution, respondents said security of personal information was most important. Next was low or no fees, followed by fraud protection, fraud alerts and convenient locations in their area. “With the rise of digital-first engagement, customers are more aware of the vulnerability of their personal information, so having confidence in their financial institutions’ security measures is growing in importance,” the report’s authors said.
Verint also looked at how different generations interact with their banks. Nearly half of baby boomer and Generation X respondents said they didn’t know fraud alerts were available from their banks, compared to 36% of millennials. Researchers also found that Gen Z and millennials were more likely to need help with various aspects of financial management, like cutting costs and setting a budget.
“As global inflation rises, a lack of assistance with financial management is likely to have a bigger impact on younger generations than it might have 6-12 months ago. With many willing to switch accounts, offering products or services that help address the gap in Gen Z’s and millennials’ financial knowledge requires serious consideration if banks want to retain a loyal customer base in the long term,” the authors wrote.
