Most consumers are satisfied with their banking service providers and do not plan to switch institutions in the near future, with the trend likely to continue as long as most people are focused on short-term financial goals rather than long-term plans, according to a new survey of consumer banking and payments by research firm Morning Consult.
Morning Consult polled up to 4,400 U.S. adults about their financial well-being every month over the past year. The number of individuals who are financially worse off compared to a year ago grew as inflation took its toll, with half of respondents saying the money they have or will save won’t last. Consumer progress toward financial goals like giving to charity and saving for retirement also declined as larger numbers of respondents reported a lack of money at the end of the month.
Large majorities of respondents—90% to 95%—said they were satisfied with their financial institution, whether it be a traditional bank, digital bank, credit union or credit card company. Few were thinking about switching banking service providers given their current preoccupation with meeting short-term financial goals. However, citing previous research on the topic, the report’s authors noted consumers may be enticed to switch to banks that pay higher interest on savings accounts.
- Overall demand for lending products such as mortgages and auto loans decreased as interest rates rose. The share of adults who reported at least one credit card in their household remained unchanged.
- The number of individuals using digital banking—which grew in popularity during the pandemic—has remained unchanged in the U.S. compared to many other countries, where in-person banking has rebounded.
- Use of ATMs, bank branches and digital wallets declined, although more people reported using a digital wallet than visiting an ATM or bank branch. Still, the U.S. lags behind most other major economies in digital wallet adoption.