Rewards a primary switching motivator for Millennials
AUSTIN, Texas–(BUSINESS WIRE)–#doyoukasasa–A 2016 Kasasa Explores survey found that 83 percent of Millennials would
switch banks if one offered more or better rewards. Previously, Kasasa’s 2015
Consumer Banking Insights (CBI) Study found that two thirds of
Millennials (67%) say rewards are important when choosing a financial
institution. The 2016 survey was conducted online by Harris Poll on
behalf of Kasasa from April 8-12, 2016. It garnered responses from more
than 2,000 U.S. adults age 18 and older.
Last year’s study also found that nearly one in two consumers (45%)
would be encouraged to switch institutions for higher interest rates
earned for savings and checking accounts, and about two in five (41%)
would be encouraged to switch for lower fees. Despite rewards being
cited as a primary switching motivator, as well as higher interest rates
and lower fees, the research showed 70 percent of Americans had never
switched their primary bank. Millennials, however, seem more likely to
do so; the Millennial
Disruption Index found that one in three Millennials are open to
switching banks in the next 90 days.
Kasasa Explores survey also found that 65 percent of Millennials are
more open to switch to a community financial institution if it offered
mobile services, such as mobile check deposit. An overwhelming majority
of Americans (96%) across all generations say no fees are important when
choosing a financial institution for their everyday banking needs.
Additionally, 71 percent of consumers believe that free checking, ATM
fee refunds, and access to the latest banking products are more
important than the banking institution itself when choosing a bank,
according to the 2015 CBI Study.
Community financial institutions (CFIs) can capitalize on these trends
and increase market share by offering free checking and savings accounts
that have a zero minimum balance and offer incentives like rewards,
cash-back and ATM fee refunds. Kasasa accounts enable CFIs to drive new
account growth, increase non-interest income and compete with megabanks
by motivating consumers to engage more deeply and meaningfully with
their CFI. In fact, according to a Kasasa survey, 93 percent of Kasasa
accountholders say they like or love their Kasasa accounts, and
two-thirds are very likely to recommend their Kasasa FI to friends.
“The largest generation in American history, Millennials are a crucial
market segment for CFIs to attract and retain,” said Gabe Krajicek, CEO
of Kasasa. “They have unique expectations and needs, including a strong
interest in rewards, which our latest Kasasa Explores survey validates.
Rewards are now a primary motivator for switching to another financial
institution, especially among Millennials. CFIs that offer these types
of incentives will substantially increase account growth, encourage
stronger account retention, increase profitability and ultimately
increase their competitiveness among megabanks.”
To download the complete report, please visit Kasasa.com/Rewards.
The 2016 Kasasa Explores survey was conducted online within the United
States by Harris Poll on behalf of Kasasa, formerly BancVue, from April
8-12, 2016 among 2,090 adults ages 18 and older. This online survey is
not based on a probability sample and therefore no estimate of
theoretical sampling error can be calculated. The 2015 Consumer
Banking Insights (CBI) Study was conducted online within the United
States by Harris Poll on behalf of Kasasa from January 5-9, 2015 among
1,002 U.S. adults (ages 18+). For complete survey methodology, including
weighting variables, please contact Mary Curtis at 678-781-3074 or firstname.lastname@example.org.
Kasasa®, formerly BancVue®, is the innovative leader in branded,
community-powered banking products proven to drive profit and growth for
community financial institutions. With unprecedented access to training,
compliance, research, support resources and customized consulting,
Kasasa’s flagship suite provides a research-based strategy leveraging
the power of a branded relationship platform. Kasasa is making community
financial institutions the topic of conversation for happy consumers
nationwide. For more information, please visit www.kasasa.com,
or visit them on Twitter @Kasasa,