New research reveals alarming dissatisfaction levels among Canada’s 31- to 45-year olds toward their current banks.
Acumen Research Group’s ConsumerEyes survey on the financial services industry, found that these young, mature consumers with a household income over $90,000 are the least likely to recommend their bank to others.
The group is also the least likely to consider their current provider first for additional products and services, and the most likely to seek alternative banking services outside of their primary financial institution.
They are also the least satisfied with the majority of issues tested in the study, and the most concerned about price-related issues.
“This financially savvy consumer group stands to inherit a wealth of assets and should be at the top of the banks’ totem poles right now,” said Rod Skinkle, president of Acumen Research Group. “But, in its hot pursuit of their boomer parents’ dollars, the financial services industry isn’t forging any loyalty with this critical market. Something has to give, and it could very well be this group’s dollars and future business in the direction of the new alternative and boutique banks!”
In contrast, the research showed that their high-income counterparts in the 18- to 30-year-old demographic were much more loyal in rating their current banks. Findings revealed that this group: is most likely to consider their primary provider first for additional financial products/services; is more likely to recommend their bank to friends; and, has the lowest expectations on price-related issues such as interest rates, service charges and reward programs.
Joan Pajunen, co-author of the report, says: “Banks need to satisfy these expectations and cement a long-term relationship with this group now before they shapeshift into the more discerning, demanding, dissatisfied shoppers of the older demographic.”
Young, high-income earners most likely to desert banks
Lucrative group shows high levels of dissatisfaction, survey finds
- By: IE Staff
- September 25, 2002 September 25, 2002
- 10:20