With Millennials leading the way, consumers are looking for tools that allow them to take control of their finances and make banking easier.
According to the results of ‘Expectations & Experiences’ quarterly research conducted by Fiserv, most consumers are satisfied with their primary financial organization, but are less satisfied with their own financial health. The survey found that consumers continue to manage their finances and make payments using multiple channels, with Millennials using mobile banking nearly three times more than other generations.
“The latest Expectations & Experiences survey underscores the day-to-day concerns about money that still loom large for consumers, even as there are more options available than ever before in how they can manage their finances,” said Mark Ernst, chief operating officer, Fiserv. “For banks, credits unions and billers, this is an opportunity to go beyond offering products to creating experiences that are essential to people’s lives, anticipating their needs and giving customers control and confidence in their financial futures.”
Financial Anxiety Remains
Despite an economy that is significantly better than a decade ago, the survey found consumers were less content with their financial health compared to other areas of life. This is especially true with Millennials and lower income households. Only 20% of early Millennials and 21% of low-income respondents said they were satisfied (8 or higher on a 10 point scale), compared to 36% of the population as a whole. Larger percentages of consumers were satisfied with their emotional health (52%), social life (44%) and even their physical health (43%).
When questioned further, the level of financial anxiety became more clear across all demographics:
- 39% would have trouble or would not be able to pay back a $500 loan
- If they received $1,000 unexpectedly, 47% would use it to repay a debt
- 44% have needed immediate access to funds from a check in the last year
Satisfaction with Financial Institutions High
The satisfaction with primary financial providers remains high, with a 76% satisfaction level. This helps to explain the stability of use of traditional financial providers over the past several years (85% use a large national bank, credit union or community bank as their primary institution).
The research did find the use of virtual or online-only banks increased to 8% among late Millennials, with 15% of high net worth households using digital providers. These demographic segments tend to provide a leading indicator…[read the full article at thefinancialbrand.com]