Posted by MeridianLink | September 16, 2022

Behind the Ratings: Why Consumer Sentiment Toward Banking Needs Work [Content Roundup]

In a recent Gallup poll, US consumers gave 25 industries—including banking—their lowest ratings since 2008. Among those surveyed, only 36% reported a very or somewhat positive overall view of banking in 2022 compared to 40% in 2021. 

The same percentage (36%) reported a positive view of banking in 2008, marking a steep decline from 50% in 2007. So why has consumer sentiment toward banking dropped to Great Recession levels? 

For all industries with lower ratings, Gallup points to high inflation combined with Americans’ flagging confidence in U.S. institutions and the economy. Looking specifically at the banking sector, excerpts from the following articles and reports put these ratings in context and offer insights to help financial institutions understand and meet consumer expectations. 

1. Forbes – How Financial Institutions Can Turn Data Insights Into Consumer Confidence

“In an increasingly digital world, people look toward the experience they receive in other business sectors and wonder why their bank … doesn’t serve them in the same way.” 

2. Bain & Company – Voting With Their Feet: Banking Consumers Want a Seamless Digital Experience 

“Many consumers now look to buy banking products through a website or app, but their primary bank often loses their business. Roughly half of customers who tried to buy digitally defected to a competitor.” 

3. Deloitte – 2022 Banking and Capital Markets Outlook

“Our US digital banking consumer survey revealed millennial and Generation Z respondents were much more likely to switch their primary bank compared to older consumers.” 

4. PwC – Digital Banking Consumer Survey

“The pandemic altered the way in which US consumers tend to interact with their financial institutions, with an overall shift toward digital. While this is the continuation of a trend we’ve been following for years, this shift was dramatic.” 

5. The Financial Brand – Banks’ Digital Transformation Pace Is Too Slow for Consumers

“The pandemic certainly did lead to big advances in usage of digital banking, as well as many new customer-facing innovations. Yet two factors have slowed the momentum: the need to change processes and technology end-to-end within banks and credit unions, and the fact that consumer expectations don’t stand still, but keep moving upward.” 

6. Cornerstone Advisors – What’s Going On In Banking 2022

“Credit unions got a head start on banks with 16% launching a digital transformation strategy in 2018 or earlier, versus 9% of banks that had launched a strategy by then. By the end of 2022, just 11% of banks and 4% of credit unions will not have launched a digital transformation strategy. Overall, 5% of financial institution executives say that they’ve completed, or are almost done, with their digital transformation strategy.” 

7. J.D. Power – 2022 U.S. Retail Banking Satisfaction Study

“Most banks are missing the mark when it comes to making their customers feel supported as increasing numbers of US consumers indicate an increase in their financial stress. Moreover, banks have struggled to deliver on customer expectations for personalization as nearly half of customers have now moved to primarily digital-centric banking relationships.” 

8. Insider Intelligence – The Future of Retail, Mobile, Online, and Digital-Only Banking Technology in 2022

“The popularity of mobile banking has surpassed that of online banking, and the overall number of online customers has slowed worldwide. According to Insider Intelligence, mobile banking is growing at five times the rate of online banking, and half of all online customers are also mobile banking users.”

9. FinTech Futures – How Legacy Banking Systems Can Be Modernized to Meet the Needs of Today’s Consumer

“Banks need to create more for the customer. The trends that we are seeing right now is that banks are looking at more enhanced levels of customer engagement, bringing in capabilities, improving enterprise and service provision, and developing an overall holistic offering. Customer-facing solutions are the future of banking, but for banks to appeal more to their customers, they must streamline their internal processes to become more efficient and better at doing what they need to be doing in the middle and back office.” 

10. Forrester – In 2022, Banks Are Refocusing Their Efforts on Innovation, Sustainability, and IT Improvements

“Twenty-five percent of services decision-makers at banks say that their company’s technology strategy is among the biggest challenges to executing digital transformation. Twenty-five percent also say that employee availability of time devoted to digital transformation execution around their other job responsibilities is also a challenge.” 

Delivering the Digital Experiences Consumers Expect 

More than 1,900 diverse financial institutions and CRAs trust MeridianLink to help them meet consumer expectations for digital experiences and build lifelong financial relationships. 

Learn how the MeridianLink® One platform can help streamline digital transformation for your institution so you can support every consumer’s financial journey—from account opening to credit reporting, loan origination, and more. 

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