Millennials access mobile banking almost three times more than other generations but only 32% feel satisfied with their financial health, compared with 36% of other consumers, according to a Fiserv survey.
The Brookfield. Wis.-based financial services company in its Expectations & Experiences quarterly consumer trends survey confirmed that consumers use a blend of digital and traditional channels to manage finances but also revealed many consumers struggling to manage finances.
While many are satisfied with their financial institution there is an opportunity for credit unions to improve the customer experience and help consumers better manage their financial lives.
“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,” Mark Ernst, COO, Fiserv said. “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.”
Here’s a breakdown of some findings:
Digital Engagement. When it comes to how consumers access financial services, the shift towards self-service in online and mobile channels continues to mature. Online banking websites via a computer remain the most frequent way consumers access their primary financial organization, six times on average in a month. Over a 30-day period, millennials accessed their financial organization via mobile app or browser 8.5 times on average versus 3.1 times for non-millennials.
Overall, while millennials reported lower satisfaction than older counterparts both with their financial health (32% vs. 38%, respectively) and primary financial organization (69% vs. 79%, respectively), they are the most engaged segment overall in terms of channel access.
Traditional methods of managing household finances and payment remain in the mix, even when many people don’t prefer them. For instance, while just 6% of consumers cited checks as their most preferred method of payment, 58% of consumers said they cashed a check within the last three months. Forty-four percent identified needing immediate access to funds from a check within the last year. Common needs cited for immediate check funds include daily expenses (26%), covering bills (20%) or to avoid late fees on payments due (10%), among those who have ever cashed a check.
Signals of Financial Anxiety. The survey found consumers are less content with their financial health compared to other areas of life. Just 36% of consumers rated satisfaction with their financial health as an eight or higher on a scale of zero to 10, lowest among other rated aspects of life such as emotional and physical health and social life and physical health.
If asked to pay back a $500 loan immediately, 39% of consumers would have trouble or would not be able to pay the loan back. If they were to receive a $1,000 in funds unexpectedly, almost half of consumers (47%) said they would repay a debt.
Security remains top of mind. When presented with various financial tools from either a financial organization or other company, the tools receiving the most interest were security-related: 65% indicate interest in security programs to safeguard mobile activity, while 58% showed interest in biometric identification methods. People also showed interest in services that enabled them to secure their physical debit and credit cards via mobile devices. Among smartphone users with debit and/or credit cards, 60% indicated interest in using their smartphone to respond to credit or debit card fraud alerts, and an almost equal number indicated interest in receiving card transaction alerts for credit cards (61%) or debit cards (62%) to quickly identify fraudulent transactions.
Harris Poll, on behalf of Fiserv, conducted the survey of more than 3,000 U.S. banking in August 2016.
