MADISON, Wis.–A new study by the Filene Research Institute has found what consumers value in a financial relationship changes as they get older.
Filene’s “National Banking Preference” study of 985 respondents found consumer banking preferences are shaped by a variety of personal factors. Among the findings:
- Young consumers, age 18-24 rank fees as their greatest concern but don’t put as much weight into fees as those 45 and older.
- When looking at the average age and income levels of respondents who bank with credit unions, Filene found that almost 30% of credit union respondents have an annual household income of $50,000-$74,999.
- Rates, digital services, and product choice become less important as one ages. “When looking at banking preferences based on income, we find that the majority of respondents, regardless of income level, prefer banks to credit unions, lower fees and wide choice of generic loan and deposit products to limited choice of customized loan and deposit products,” Filene said.
- When consumers were asked “How important is the type of institution with which you bank,” all age groups and income levels chose bank. “Despite strong loyalty among existing members, credit unions do not capture the preference of the general population,” Filene said.
- Service location was ranked by consumers as the third most important financial service variable. On average, Filene said service location becomes more important in the 65+ age group; respondents age 18-24 place greater importance on service locations than the national average.
For the full study, visit www.filene.org.