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Fast Facts: Child Identity Theft

February 11, 2013 By Banking.com Staff Leave a Comment

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast Facts on child identity theft as children may be an easy target for identity theft and often don’t discover it until years later when they apply for a job or attempt to take out a loan.

FACT: One in 40 households in the US with children under the age of ages 18 is affected by identity fraud.

FACT: 56% of child identity theft cases reported misuse of the child’s Social Security Number (SSN).

  • Thieves will often create a ‘synthetic identity’ using the child’s SSN and a different name, date of birth, and address, to obtain new bank or credit accounts for financial gain, or services such as utilities, phone, cellular, and Internet.
  • Children’s information is also used to commit non-financial identity theft, including obtaining fraudulent tax returns or government benefits, housing rental, employment, medical treatment, or evading criminal charges.

FACT: Lower income families are disproportionately affected by child identity fraud, with 50% of victims living in households with incomes under $35,000.

  • Of victims who were able to identify the perpetrators of these crimes, 36% found them to be family members, and an additional 35% were family friends.

FACT: Child identity fraud can be avoided. Check early and often.

  • Keep personal information like birth certificates and social security cards locked away and sensitive computer documents password protected. Use a cross-cut paper shredder before disposing of paper documents of this nature.
  • Teach children how to be safe online, particularly while visiting unsecured websites and using social media.

FACT: Federal law under the U.S. Fair Credit Reporting Act allows for the request of one free credit report per year.

  • If your child’s identity has been stolen, contact the three credit reporting agencies to place a fraud alert, and then file the theft claim with the Federal Trade Commission.
  • Because a child’s SSN is often used as part of a synthetic identity, ask each of the three major credit reporting agencies, Equifax (1-800-525-6285), Experian (1-888-397-3742) and TransUnion (childidtheft@transunion.com), for a manual search for your child’s credit report, based only on the child’s SSN.
  • Ask each agency for its mailing address, because you will need to provide a cover letter with proof that you are the child’s parent or legal guardian.
  • You may consider placing a credit freeze to prevent thieves from opening additional accounts under your child’s name.

For more information on how to combat child identity theft and learn preventative measures, visit the Identity Theft Assistance Center website.

 

Copyright © 2013 The Financial Services Roundtable, All rights reserved.

Filed Under Data & Research, Industry News Tagged With Children, fast facts, fraud, identity, loans, statistics, The Financial Services Roundtable, youth

The Mobile Revolution: Remote Deposit Capture

February 6, 2013 By Jason Weinick 3 Comments

The tablet revolution. The post-PC era. The smartphone explosion. No matter what label resonates the most with you personally, the idea is the same: personal computing is changing. People are spending more time with smaller devices, such as tablets and smartphones, and less time on desktops and laptops.

Recent data from Forrester Research, Intuit and Bain & Company point to this mobile revolution:

  • Approximately 90 percent of adults own a mobile device, of which smartphones are rapidly approaching half of all mobile devices in the marketplace.
  • Approximately 96 percent of U.S. households have at least one wireless subscription.
  • Roughly over 1/3 of online bankers are actively using their mobile device to engage with their financial institution, and mobile bankers are accessing their financial information 59 percent more often than non-mobile online bankers.
  • Roughly three-quarters of branch interactions are routine (deposits, withdrawals and account balance inquiries), driving up costs and diverting resources from more important interactions.

The new online and mobile lifestyle requires digital banking as a new way of delivering a connected lifestyle.  Customers would like to bank anytime, anywhere and on any device. Giving your customers the ability to deposit checks anytime and anywhere using a mobile banking app is the next revolution in that connected state.

I recently had the opportunity to analyze the behavior of customers who utilized mobile remote deposit, which was offered by a financial institution who uses Intuit Financial Services for their online and mobile banking platforms. The analysis solely focused on customers who had an open checking account and made at least one deposit into the financial institution in each month of the analyzed time period.

Although the financial institution was less than six months into the product lifecycle, the results were extremely encouraging:

  • Does mobile remote deposit cause customers to frequent the branch/ATM less for their deposit needs?

Intuit research indicates the answer is YES. Mobile remote deposit is changing consumer behavior and transferring more of those routine, costly “human” touch points to a less costly channel. Customers which ultimately used mobile remote deposit were using the branch for 29 percent of their deposits prior to using mobile remote deposit. Once the consumer starting using the service, their deposit behavior at the branch decreased to 19 percent – mobile remote deposit diverted 10 percent of all deposits away from the branch. Customers who never used mobile remote deposit did not experience a shift in their branch behavior. Usage of the ATM for deposits also declined for mobile remote deposit customers – 9.2 percent in the “before” period vs. 6.5 percent in the “after” period.

With the cost of gasoline over $3.50/gallon in most places, from the consumer perspective, think how much it costs (including time inefficiency) to drive to your local branch and make a deposit. Mobile remote deposit saves consumers money and is a more efficient alternative that savvy customers will demand.

What will this shift in behavior – from in-branch to mobile remote deposit – mean for the brick and mortar business model? In the short-term, it doesn’t appear financial institutions are in a hurry to reduce customer service headcount or slow the pace of new branch openings. The digital banking channel has created a more efficient operation; however, should not be viewed as an alternative channel. Rather, digital banking is moving towards more of an extension of the branch and with the reduction of “routine” transactions, in-branch representatives can invest more of their time cross-selling products rather than depositing a check.

  • Does mobile remote deposit cause customers to increase their deposit activity?

Study results from Intuit indicate the answer is YES. Customers who used mobile remote deposit increased their monthly number of deposits by two percent, while those customers who didn’t use the service actually experienced a decline in their number of monthly deposits by three percent. Did the customer using mobile remote deposit magically begin receiving more checks once they started using the service? Likely not, but rather, instead of depositing a check into another financial institution, (perhaps for a savings or retirement account) they now deposited these funds into the financial institution which offered mobile remote deposit, which means the financial institution has further positioned themselves as the customers’ preferred financial institution.

  • Does mobile remote deposit lead to higher consumer acquisition and/or lower consumer attrition?

To be determined. When I measured the results of mobile remote deposit, the financial institution was less than six months into the product offering with its customers The hypothesis is that mobile remote deposit will strengthen the consumer relationship and thus extend the consumer lifecycle. Additionally, now that the financial institution is offering this value-added service, the belief is that this product will attract new customers to the financial institution and win business from the competition. This could be especially true for the Gen Y and Gen X segments. The comment “attracting a younger demographic” is posed as a strategic initiative in my conversations with financial institutions. Over 75 percent of mobile bankers are Gen X and Gen Y, so these demographics will be the most likely to utilize mobile remote deposit.

The customers most likely to adopt the mobile remote deposit feature are cost‐effective bankers. They monitor their finances through the Web or their mobile phone at a higher propensity than all other customers, which lowers operational costs for the financial institution. In short, customers who desire mobile remote deposit utilize technology that is beneficial for the financial institution and the consumer.

About Jason Weinick: Jason is a Senior Analyst with Intuit Financial Services and leads the initiative on client profitability analyses, providing banks and credit unions a valuable in-depth look into the value of the online channel. Jason’s background includes 15 years experience within the financial services sector, focusing on consumer behavior, risk modeling, reporting, and financial analysis. Jason holds a Bachelor of Science degree in Finance from Clemson University.

Sources: Forrester Research, May 2011; Intuit Financial Services Profitability Study, April 2012; Bain & Company Customer Loyalty in Retail Banking Americas, 2011

 

Filed Under Data & Research Tagged With data, financial data, Intuit, mobile, mobile banking, remote deposit capture

Small Business: Perception vs. Reality

November 21, 2012 By Banking.com Staff 1 Comment

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every candidate—the very backbone of the nation’s economic infrastructure, the greatest source of employment and innovation, the foundation of America’ greatness.

The new J.D. Power and Associates 2012 US Small Business Banking Satisfaction Study paints quite a different picture. It uncovers an environment where optimism co-exists with uncertainty, and where tapping capital resources remains an unnecessarily onerous task. Far from being lauded, this is a market  that is looking for support, deserves it, but too often doesn’t get it.

There’s no question that as the economy continues to recover, however slowly, small businesses will play a critical role. Those already in the market are on track to keep growing, and this will turn help fuel the creation of others. Indeed, the study highlights a degree of optimism in this sector.  There’s a clearly perceptible spike in the percentage of small business banking customers who report being better off now than they were a year ago. It’s still far from a majority at 33 percent, but that’s still a 10 percent jump over last year’s corresponding number, and even better news compared to the 15 percent who now say they’re worse off.

“There is a long road ahead to economic recovery, but it’s positive to see that small business banking customers report they are better off this year over 2011,” said Jim Miller, senior director of banking at J.D. Power and Associates.  “Since 2009, we have seen the percentage of those who reported to be ‘better off’ jump from 16 percent in 2009 to 33 percent in 2012.”

For banks in particular, there’s even more good news.  The JD Power study reports that, on average, small businesses hold deposits four times greater and loan balances 15 times greater than retail banking customers. The people running the businesses are doing well too: these customers carry higher levels of personal banking business than the average consumer.

And finally, there’s the profit factor. Perhaps contrary to conventional wisdom, profit margins associated with small business customers are typically higher than those associated with larger corporate banking customers.

However, the gulf between perception and reality extends into other areas as well, with less happy results.  As the JD power study makes clear, this market doesn’t get the respect it clearly merits. For the record, there is a higher level of overall satisfaction in the most recent report, but that’s still cold comfort. In fact, it still ranks near the bottom among the financial services businesses that the study covers (only mortgage servicing ranks lower). Even the credit card business, which long languished at the bottom, has now moved past small business banking in satisfaction to levels enjoyed in the retail banking sector.

The elephant in the room, of course, is credit, or rather the lack of it. Oddly, the hard numbers don’t necessarily show a decline here: 82 percent of small business loan applicants say got approved for their most recent loan, the same as the year before.  However, a recent research effort conducted by the Small Business Administration that went a level deeper revealed that lending  this sector has been falling steadily since 2008, the year of the banking meltdown. This is likely  one factor behind the declining Availability of credit rating, which is down from 6.71 (on a 10-point scale) last year to 6.65 in this year. That’s actually  one of the lowest-rated attributes in the 2012 study.

Again, all the clichés ascribed to the small business sector—hardy, entrepreneurial, innovative—are real. This is a risky proposition, and we all know just how many new ventures don’t survive. At the same time, as every good candidate will point out in every stump speech, small business is exactly what will fuel overall economic recovery.

In the next piece, we’ll look more closely at the pain points in this market. But for now, the unmistakable takeaway is that small businesses are healthier than they’ve been for a while, they’re vital for economic growth, and there are significant profit margins involved. The market is good for companies, good for individuals, and good for the economy. Given those considerations, the banking satisfaction levels identified by the new report are lamentably low, and it should be the industry’s goal to do better.

* Now in its seventh year, the U.S. Small Business Banking Satisfaction Study measures small business customer satisfaction with the overall banking experience by examining eight factors: product offerings; account manager; facility; account information; problem resolution; credit services; fees; and account activities. The 2012 study includes responses from nearly 7,246 small business owners or financial decision-makers who use business banking services. The study was fielded from August 10, 2012, through September 10, 2012.

For more information about the J.D. Power and Associates 2012 US Small Business Banking Satisfaction Study, please contact: Holly Zagresky at (248) 680-6319 or via email at Holly_Zagresky@jdpa.com

Filed Under For Financial Institutions, Surveys Tagged With banks, customer satisfaction, J.D. Power and Associates, small business, small business banking, Small Business Banking Satisfaction Study

The Impact of Baby Boomers & Seniors on Online Banking

October 11, 2012 By Jason Weinick 1 Comment

There is a presumption which exists in the world of online banking that baby boomers and seniors do not use their computer and/or mobile device to interact with their financial institution. We’ve all heard the reasons why – security, lack of internet access, or they prefer to bank the way they’ve always banked. However, as a Gen Xer and someone who works in the banking industry, I’ve seen that boomers and seniors do use online banking, and they could fuel the next growth wave within digital banking.

Over the last three years, I have performed portfolio analytics across dozens of Intuit Financial Services’ clients encompassing 2.8 million checking account holders.* These deep dive studies have provided me with insights into the banking behavior of consumers. While baby boomers and seniors have not quite reached the level of adoption rates of online banking as Gen Y/X, it’s hard to ignore their adoption growth over the last several years. Additionally, once baby boomers and seniors become active users of online banking, their engagement within the channel rivals Gen Y/X. Baby boomers and seniors, ages 49-68 and over 68 respectively, account for 46 percent of all open checking account holders.

* See chart below for breakdown by generation and comparison of bank vs credit union.

Across the 2.8 million checking account holder segment I have analyzed, 55 percent of Gen Y (0-28 in age) consumers actively use online banking. This rate is 57 percent for Gen X (29-48); 46% for baby boomers; 27% for Seniors. Those stats probably don’t surprise anyone, but what if I were to say that both baby boomers and seniors demonstrate a higher active use rate for bill payment than GenX and GenY? Granted, Gen Y includes a portion of consumers who (enjoy it while you can) haven’t reached the point in their financial lifecycle to have payment obligations, but it’s probably safe to say that most Gen Xers have monthly obligations. 35 percent of online banking boomers utilize bill payment, compared to 33 percent for seniors and 32 percent for Gen X. Granted, the variance here is very tight across these 3 generations, but the point I’m making here is that boomers and seniors utilize the services within the online channel once they feel comfortable with using online banking. And it’s not just bill payment – Personal Financial Management tools, internal funds transfer, eStatements – boomers and seniors have shown an appetite for these services, and as we know, the more engaged a consumer is within a channel, the less likely they are to leave the financial institution.

According to a study by Market Insights Professionals, “Boomers…are not far behind in embracing the Internet for their shopping needs–two out of three Boomers have researched a product or service online in the past three months, and more than seven out of 10 have made an online purchase during the same time frame. Boomers are the generations with the highest online spending levels.”[i]

What is also interesting within the data I’ve analyzed is the trend over time related to the active use curve of online banking. The traditional product curve for online banking reveals early adopters are younger demographics who embrace technology, have grown up with a computer and internet access, and value anywhere/anytime convenience. Pew Research found that “While the youngest generations are still significantly more likely to use social network sites, the fastest growth has come from internet users 74 and older: social network site usage for this oldest cohort has quadrupled since 2008, from 4% to 16%”[ii]. Technology services such as email, Skype, eBay have become increasingly popular with boomers and seniors, and as their comfort level with technology grows, so too does their adoption rates of online banking. The table below illustrates the online banking behavior of the same checking account holders over a two year period. The annual growth rate of seniors actively using online banking is outperforming all other generations, followed by Gen Y, Boomers, and Gen X. The additional growth in Gen Y is believed to have been fueled by mobile banking.

I know what you’re thinking – because seniors started at such a low adoption rate there was more room for them to grow. That is true, but their rate of growth still exceeded other generations, in part because technology is becoming more commonplace in their household and financial institutions have vastly publicized the security and convenience of online banking. “Older generations become more active as their experience with a new channel increases. Our research shows that as tenure with a digital channel increases, so, too, does a user’s willingness to conduct more complex interactions through that channel — such as selling a security through a mobile phone.”[iii]

While the saturation point of online banking for Gen Y and X might be near, boomers and seniors not only represent the majority of the US population, but their acceptance of online banking continues to grow at a rapid rate. Financial institutions and providers of online banking services must be aware of consumer demographics and perhaps go so far as to customize online banking for those demographics. Whether it’s the font size on the computer screen, products/services presented to the consumer, or changes to secure login credentials, demographics should not be ignored when considering growth in the online banking channel. Do not grow complacent in pursuing this older market. As you can see, there is much opportunity and benefit to attract the older generation. It is observed, that once the baby boomers and seniors gain confidence in the online channel, they will begin to cultivate additional online services, which presents another chance to cross-sell this generation.

About Jason Weinick: Jason is a Senior Analyst with Intuit Financial Services and leads the initiative on client profitability analyses, providing banks and credit unions a valuable in-depth look into the value of the online channel. Jason’s background includes 15 years experience within the financial services sector, focusing on consumer behavior, risk modeling, reporting, and financial analysis. Jason holds a Bachelor of Science degree in Finance from Clemson University.

[i] November 2, 2011: The State Of Consumers And Technology: Benchmark 2011, US, by Gina Sverdlov, for Market Insights Professionals

[iii] June 8, 2011: Mobile And Social Technologies Come Late To Wealth Management: Younger Generations Are Just The First Wave Of Mobile and Social Adopters- by Bill Doyle with Benjamin Ensor, Amelia Martland, and Beth Hoffman

Filed Under Data & Research Tagged With Baby Boomers, gen x, gen y, Intuit Financial Services, online banking

We Want Your Feedback: What Are You Interested in Reading on Banking.com?

July 30, 2012 By Banking.com Staff 1 Comment

Banking.com readers, we want to hear from you. Take the poll below to let us know what you are interested in reading on Banking.com, or leave us a comment.

Filed Under Surveys Tagged With Banking.com, FI Spotlight, survey

Market Outlook: Good Times Ahead, But. . .

July 30, 2012 By Banking.com Staff 2 Comments

Another day, another ray of hope in an otherwise dour environment: A new report based on a poll of 137 banking executives from over 100 financial institutions reveals an optimistic outlook for the SMB market. How strong? Try this: 95 percent of bankers describe the untapped potential of this market as equal to or greater than any other current opportunity, while more than half, 57 percent, say it’s huge.

That’s the word from the North American Insights conference held by Fundtech, a provider of financial technology solutions to banks and other corporations. And the good news doesn’t end there: 60 percent say demand for new services from this market sector is higher than usual, while nearly 20 percent call it “unprecedented.” Of course, mobile is a big issue: 38 percent report that building the mobile banking channel is a top priority. Perhaps strangely, almost as many, 34 percent, also note that cutting costs in this area is a top priority. And to top it off, a strong 67 percent of the respondents believe that social networking will play a major role in their growth, but add—and this is critical—they don’t quite know how.

That isn’t the only dark note in an otherwise bright scenario. While no one denies the viability of competition, almost 60 percent of the respondents, banking professionals all, say they see signs of inroads into their business coming from non-banking companies. That would be a tip of the hat to organizations associated with the technology sector—think Facebook, eBay and PayPal. This is by no means an isolated concern. In fact, numerous other analyses have stressed that many successful entries into this market will be made not only by innovative startups but also by companies that have achieved success in the technology arena and apply those techniques to the banking sector.

That’s just one reason why another subject covered in the report is so intriguing: regulation. Bankers confirm that they’re already not clear exactly how to comply with new mandates such as the Dodd-Frank Act—to be fair, almost half say they “mostly” understand—and yet they expect more such mandates to come down the pike.

What’s completely unrelated yet very relevant in this regard are the statements made this week by former Citigroup head Sanford Weill. He startled everyone by essentially calling for the resurrection of the Glass-Steagall Act, the Depression-era legislation that separated commercial banking from investment banking, and was abandoned more than a decade ago. This is one reason why banks got to be ‘too big to fail,’ and as has been widely reported, Mr. Weill himself was a prime mover behind the change. Now he seems to have changed his mind.

Taken together, these are some strange winds blowing for the financial services industry. There are good times for banks working with the SMB sector, but one potential concern is that non-banking institutions might steal some of that thunder. Meanwhile, one of the people most responsible for shredding the legislation that separated commercial and investment banking would like to see it return, a major reason for their existing strength, recommends reducing that power.

This should be very interesting to watch. Stay tuned.

Filed Under Surveys Tagged With Dodd-Frank legislature, small business, survey

What are your plans for Financial Literacy Month?

April 11, 2012 By Banking.com Staff 1 Comment

As you may already know, April is National Financial Literacy Month and financial institutions everywhere are looking for innovative ways to educate their customers and members. The Banking.com staff took notice of some particularly creative campaigns in the month of April looking to help consumers and financial institutions take advantage of this month’s theme:

We want to know what you’re planning to do this month to help your customers and members? Let us know by answering our poll below.

Have an idea that you’d like to share? Tweet at @Bankingdotcom or let us know in the comments below.

Think your FI deserves special recognition beyond 140 characters? We’re always looking to feature more institutions as one of our FI Spotlights, so send information to info@banking2020.com.

Filed Under For Financial Institutions, Surveys Tagged With #FLM12, Financial Literacy Month

Behavioral Change: Is There An App for That?

March 29, 2012 By Banking.com Staff 1 Comment

To some of us, it might seem that people who don’t know about mobile banking must be living in a cave somewhere. But here’s the reality: Only 10 percent of mobile banking users were prompted to use their bank’s mobile channel by their actual bank.

This is not some revelation from years ago, when mobile features and capabilities were still mostly a novelty, and understandably accompanied by some trepidation. It’s actually a key finding from a survey of 1,527 mobile banking users, encompassing more than 240 banks and credit unions. It was commissioned by ath Power Consulting, a provider of customer experience solutions for the financial services industry.

That’s not the only bad news in the report. It turns out that only one in five users were offered any option to customize their user interface, and fully 40 percent failed to find links for technical support.

It’s relatively easy for those of us essentially embedded in these disciplines and practices to look down on these findings—after all, companies have spent millions developing these technologies, and millions more promoting them. Besides, many of those consumers are surely using their mobile devices for many other functions that would have seemed futuristic just a couple of years ago. So what’s the problem?

Just this past week, acerbic comedian Bill Maher got big laughs on his HBO show by expressing bewilderment at the construction of new retail banks. He noted that he hasn’t walked into a bank for many years, since there’s so much available at the click of a button.

But we should get real too. When it comes to banking, just saying “There’s an app for that” isn’t enough.

It’s impossible to bottle the science behind behavioral change. If we could, everybody would launch something like Facebook out of a dorm room, or create viral videos on a regular basis. What we do know is that some behavioral shifts (such as social networking) occur at an incredible pace, while others (such as specific aspects of e-commerce) are adopted in fits and starts. For the most part, we don’t know why, except that the availability of a new technological capability alone doesn’t guarantee a change in habit.

Money complicates the issue even more. The relationship we have with our banks is fundamentally different than with our favorite retailer or clothing brand; it requires a level of trust, comfort and familiarity that extends far beyond other B2C interactions. It takes a leap of faith to go from using the cell phone to Tweet something personal (which we know others can see) to conducting a sensitive financial transaction.

For the record, the ath Power study does show some promise. While security will always be a prime concern, the mobile channel can play a major role in fraud prevention as mobile adoption improves and consumers become more familiar with alerts. On another front, mobile customers are more loyal: about one in eight say they’ll change banks within two years, compared with one in five in the general customer base. Finally, despite the relative lack of awareness of this category, the quality of a mobile offering is a major factor in choice of bank among the mass affluent and small business owner segments.

That’s all for the good, but this is a behavioral change that needs broader consumer adoption. And for that to happen, maybe the word needs to get out a lot more than it has so far.

Filed Under For Financial Institutions, Surveys Tagged With mobile banking, survey

Small Business, Big Lending

March 8, 2012 By Banking.com Staff Leave a Comment

After such a prolonged period of doom and gloom in the global economy, any uptick in lending from financial organizations is cause for celebration. Now maybe, just maybe, we’re headed that way.

First, the good news: Flush with deposits, banks around the world have money in their coffers. Next, the better news: They’re more inclined to make loans in 2012 than they have been for a while (as in, the recession). Finally, the best news: Small businesses, often seen as the true engine of growth, are likely to benefit the most.

That’s the word in a new report from Omega Performance Corp., based on a survey of 409 respondents around the world, and it offers an interesting snapshot of how bankers see the near future. And by all accounts, what they see is good. In fact, 69 percent of global bankers reported a positive outlook for the global economy over the course of the year. For the record, no one’s looking through rose-colored glasses just yet: Only 12 percent predict “drastic” improvement on a global scale, while 57.2 percent see it improving “slowly.”

It’s in the area of lending practices that we see the greatest changes. Well over half the banks surveyed forecast greater lending on the consumer front, and the numbers are even higher for EMEA. It’s an even better story on the commercial side, but this time, the outlook is rosier in the North America, particularly the U.S., with a whopping 72.5 percent.

Going one level deeper, there’s an even brighter spot. Nearly three-quarters of the respondents said that their financial institutions will increase small business lending. Of those, 61.1 percent will do it slowly, while 12.7 percent see a drastic jump. The corresponding numbers for the U.S. are even higher, collectively clocking in at 77 percent. In fact, this sector dominates the target markets for banks—76 percent globally, and 78 percent in the U.S. On a related note, more than two-thirds of respondents in the U.S. plan to actively pursue leading to mid-sized and larger business as well.

It’s not all good news: For example, construction and multi-family homes (considered bellwethers of the industry) still rate below credit cards and auto loans around the globe. As for individual housing, the number for Canada is significantly higher than the U.S.: 57.8 percent over 42 percent.

Again, like all surveys, this is just a snapshot in time. But considering the cascade of gloomy reports and dire forecasts that we’ve almost become accustomed to, any positive signs are welcome. Here’s hoping there are many more, and soon.

Filed Under For Financial Institutions, Surveys Tagged With small business, Small Business Lending

Gen Y: Leading the Technology Revolution

November 30, 2011 By Banking.com Staff Leave a Comment

Gen Y consumers are quick adopters of new technologies, so it came as no surprise that Intuit Financial Services’ Fourth Annual Financial Management Survey found nearly half (48 percent) of Gen Y consumers currently use their mobile device to conduct banking activities, compared to only 15 percent of Gen X, Baby Boomers and Seniors.

While disparate in actual usage, all consumers share the same viewpoint toward the main barrier to adoption – 41 percent do not own a Smartphone. The survey also found:

  • Nearly one-third (30 percent) of Gen Y would switch financial institutions if theirs stopped offering mobile banking. Only 15 percent of Gen X, Baby Boomers and Seniors would switch.
  • Gen Y uses mobile banking the same way they use online banking – viewing account balances and transferring funds is ranked as most important (70 percent utilization), followed by bill pay.
  • Gen Y is three times as likely to use remote deposit capture for checks compared to Gen X, Baby Boomers and Seniors (12 percent versus 4 percent )They are also three times as likely to use a tablet to access and conduct banking (18 percent versus 6 percent).

Furthermore, Gen Y is more likely to voice their opinion and dissatisfaction with their financial institution – in fact, 42 percent have already or plan to switch where they bank due to increased fees.  As referenced in our recent post, How to Attract Gen Y Customers and Members, it is now more important than ever for financial institutions to provide solutions to satisfy all demographics.

How is your FI adopting to the ever changing needs of Gen Y? Do you have specific marketing campaigns targeting the Gen Y audience? Let us know by tweeting @Bankingdotcom or leaving a comment in the section below.

 

Filed Under Surveys Tagged With #IFSsurvey, gen y, Intuit Financial Services
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