One in Five Americans Started Using a New Bank Amid Pandemic, FIS PACE Study Finds
March 23 2021 - 8:00AM
Business Wire
Key findings
- Large national/global banks have been the top choice for
consumers searching for a new bank, followed by credit unions and
direct banks.
- Seven percent of consumers started using a new banking provider
in the last 12 months so that they could participate in COVID-19
financial assistance programs.
- Nearly half of Gen Zers who started using a new bank did so to
benefit from higher savings yields, better rates, lower fees or
higher rewards.
The COVID-19 pandemic has made consumers in the U.S. more
adventurous in trying out new banks, according to a new study from
financial technology leader FIS® (NYSE: FIS).
FIS surveyed more than 1,000 Americans about their banking and
financial habits in the past 12 months since the pandemic began.
The results showed that 1 in 5 people started using a new banking
provider in the past 12 months. Thirty-three percent of those who
joined a new bank were looking for better benefits such as higher
savings yields and rewards. while seven percent of consumers said
they did so to access COVID-19 relief according to the survey.
Big Banks, Credit Unions and Direct Banks Are Winning
Consumers
- Thirty-seven percent of those surveyed opted for a large
national or global bank when starting a new banking relationship in
the past year.
- Credit unions were the second-most popular choice for consumers
with 18 percent opening accounts at these institutions
- Direct banks are a fast-emerging competitor in the banking
space with 17 percent of respondents saying they opted for this
kind of institution to do their banking.
Demographic Disparities amid COVID-19
- Nearly half of Gen Zers responded that they sought new banking
relationships over the past year for better benefits and
rewards.
- More than half of Senior Millennials said they opened new
banking accounts because of financial needs due to entering a new
chapter in life, such as starting a new job, getting married, or
moving to a new house.
- Ten percent of both Senior Millennials and Gen Xers started
using a new banking provider to participate in COVID-19 financial
assistance programs
“COVID-19 has been a huge catalyst in driving new consumer
behaviors, from how they shop to how they bank,” said Rob Lee, Head
of Digital and Banking at FIS. “All of this change spells
opportunity for banks and credit unions to advance their digital
offerings and loyalty programs to meet these changing needs and
capture new customers. To meet rising consumer demand for new
banking experiences, FIS has been heavily invested in digital-first
solutions that bring these new services and functionality to banks
while also making integration easier than ever.”
About the Data
Figures quoted are from the survey results of 1,015 consumers
across the United States between the dates February 5-8, 2021
through the Ipsos KnowledgePanel Omnibus study.
About FIS
FIS is a leading provider of technology solutions for merchants,
banks and capital markets firms globally. Our employees are
dedicated to advancing the way the world pays, banks and invests by
applying our scale, deep expertise and data-driven insights. We
help our clients use technology in innovative ways to solve
business-critical challenges and deliver superior experiences for
their customers. Headquartered in Jacksonville, Florida, FIS is a
Fortune 500® company and is a member of Standard & Poor’s 500®
Index. To learn more, visit www.fisglobal.com. Follow FIS on
Facebook, LinkedIn and Twitter (@FISGlobal).
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version on businesswire.com: https://www.businesswire.com/news/home/20210323005076/en/
Kim Snider, +1 904.438.6278 Senior Vice President FIS Global
Marketing and Communications kim.snider@fisglobal.com
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