SIOUX FALLS, S.D., Feb. 2, 2021 /PRNewswire/ -- Today's consumer is
very loyal to their bank, and holds onto their account for an
average of 14 yearsi. At the same time, more than
40 million U.S. consumers have gone digital with their banking and
a large percentage now have multiple accounts, presenting an
opportunity for neobanks and digital banks to grow, simply by
focusing their acquisition efforts on increasing share of banking
(versus switchers).
New research provides insights into how digital banks can adapt
their marketing and acquisition strategies for growth.
These are among the actionable insights identified in new
research from Meta Payments, a division of MetaBank®, N.A., and
Visa®, The Digital Migration: Growing Share of Banking.
MetaBank, N.A. ("Meta") is a national bank, a subsidiary
of Meta Financial Group, Inc.® (Nasdaq: CASH) and a leader in
providing innovative financial solutions to consumers and
businesses throughout the country.
"When it comes to digital banking, our research showed many
adopters view their digital accounts as an addition to their
existing accounts, not a replacement. Digital banks would be well
served to focus marketing and acquisition strategies on capturing
the many consumers who are open to having multiple accounts," said
Sheree Thornsberry, Meta EVP and
Head of Payments. "Further, our research showed consumer awareness
of digital banks is being driven primarily by digital channels,
indicating online and social media marketing efforts could bring a
return on investment."
The Digital Migration: Growing Share of Banking examined
how consumers are navigating digital banking, and is based on the
responses of 1,800 U.S. adults. Key trends from this research are
included below. An ebook summarizing this research is available
here.
- The "Hybrid" consumer could be key to unlocking digital
banking growth. Hybrids are those consumers who maintain both
digital-only and traditional bank accounts. This group makes up 27%
of the banking population, and these individuals are six times more
likely than their peers to have three or more bank accounts.
Notably, members of this group are also highly unlikely to give up
their traditional accounts — 77% say they'd never do so. Hybrids
are simply open to trying new accounts that meet their
needs.
- Why do so many consumers hold multiple bank accounts?
Nearly half of the U.S. population owns multiple accounts. For
many, budgeting is a key factor, with 46% opting to leverage their
accounts to separate funds for everyday spending.
- Once digital banks have homed in on their target consumer,
the research showed there are a few key ways to reach them.
Consumers are largely becoming aware of digital banks via digital
channels, including online (40%) and via social (34%). Though
digital banks are still employing traditional advertising channels
like billboards and magazines, these channels have been found to be
among the least effective.
Click here to download the complete The Digital
Migration: Growing Share of Banking ebook, and to learn about
features that drive digital account acquisition, key segment
profiles, satisfaction and tenure rates and more.
As a leading provider of innovative financial solutions to
consumers and businesses throughout the country, Meta is powering
some of the nation's leading digital banking and payment
concepts.
About MetaBank, N.A.
MetaBank®, N.A., a national bank ("Meta"), is a
subsidiary of Meta Financial Group, Inc.® (Nasdaq: CASH), a
South Dakota-based financial
holding company. Meta is a leader in providing innovative financial
solutions to consumers and businesses in under-served niche markets
and believes in financial inclusion for all. Meta's commercial
lending division works with high-value niche industries,
rapid-growth companies and technology adopters to grow their
businesses and build more profitable customer relationships
nationwide. Meta is one of the largest issuers of prepaid cards in
the U.S., having issued more than a billion cards in partnership
with banks, program managers, payments providers and other
businesses, and offers a total payments services solution that
includes ACH origination, wire transfers, and more. For more
information, visit the MetaBank website.
Investor Relations:
Brittany Kelley Elsasser
Director of Investor Relations
605-362-2423
bkelley@metabank.com
Media Relations:
mediarelations@metabank.com
i Bankrate, "Survey: While Checking Fees Vary Wildly
by Race and Age, Americans Stay Loyal to Their Banks."
https://www.bankrate.com/banking/best-banks-consumer-survey-2020/
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SOURCE Meta Financial Group, Inc.