Abstract
This report provides retail banking professionals with the data and analysis necessary to target individual customers across a number of demographic categories, helping you grow sales to both existing and new customers. For instance, Mintel' s proprietary survey for this report uncovered information that contradicts the “common wisdom” regarding such things as word of mouth marketing, Hispanic consumers, and how age and household income influence retail banking needs.
Data and analysis in this report includes:
- Consumer category trends and how they help shape attitudes toward financial institutions
- Attitudes of consumers toward banking products and services with information on corresponding products
- Loyalty of banking customers and reasons they switch banks
- Actionable analysis of competitive strategies, including marketing tactics and product differentiation
- New marketing opportunities centered on consumer preferences
- A thorough economic overview of factors driving the market and how banks must capitalize on or react to these changes
This analysis includes specific information about consumers who bank at one of the 16 largest retail banks versus those who bank at smaller institutions and credit unions.
For the purposes of this report, retail banks are those that primarily service individual consumers, as well as small- and medium-size businesses. It is usually conducted by larger commercial banks, as well as smaller community banks. Unlike wholesale banking, retail banking focuses strictly on consumer markets. Services provided include savings and checking accounts, bill paying services, and debit and credit cards. Much of the business is conducted electronically via automated teller machines (ATMs), or online banking.
Table of Contents
- Scope and Themes
- What you need to know
- Scope of this report
- Consumer research methodology
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Top industry trends
- Economic and financial overview
- Service channels
- Are Wal-Mart and other retailers a threat?
- Mintel' s consumer survey -- what do consumers think of their banks?
- Dispelling common notions regarding Hispanic consumers
- Do I like my bank?
- The bundled-service myth
- Should I switch banks?
- What would make me change my bank?
- The Wal-Mart threat
- Big-bank customers vs. those of other financial institutions
- The Retail Banking Environment
- Economic influences
- Introduction
- Figure 1: Higher bank loss provisions contribute to earnings decline, Q2 2006-Q2 2007
- Uncertain housing market
- Figure 2: Private housing starts, 1993-2006
- Are businesses righting the economic ship?
- Figure 3: Capital spending, 2000-07
- Consumers in debt
- Credit card debt
- Mortgages
- Figure 4: Noncurrent mortgages and HELOCs, 2004-07
- Foreclosures
- Trends and Factors Driving Retail Banking
- Banking industry developments
- Trends in number of banks and banking assets
- Figure 5: Number of banks, and share of assets at the largest banks, 1990-2006
- Figure 6: Change in number of banks, 2001-06
- Figure 7: Asset size distribution among banks, 2001-06
- Investigation of banking fees
- Figure 8: Estimated fee-based overdraft loan fees paid by consumers, 2004 and 2006
- Demographic factors
- Population changes
- Figure 9: Projected population of the United States, by race and hispanic origin: 2000-50
- Hispanic buying power
- Figure 10: Hispanic disposable income in the ten states with the largest Hispanic markets, 2006
- The bank/customer relationship
- Does "customer delight" exist?
- Branches
- A web of opportunity (and threats)
- Identity theft, security, and fraud
- Technological innovations
- Young consumers and technology
- "Wal-Martization" of banking
- Using data to sell new products and services
- Market Size and Trends
- Total assets
- Figure 11: Assets of FDIC-insured banking organizations, 12/91-06/07
- Figure 12: Total assets of FDIC-insured banking organizations, and number of institutions, 1990 -- Q2 2007
- Assets by organization
- Figure 13: Top 20 U.S. banking institutions, by total assets, 06/30/2007
- Figure 14: Top ten bank and thrift holding companies by deposits, June 30, 2007
- Figure 15: Number of banks with total assets over $20 billion, 2003-07
- Advertising and Promotion
- Online
- Direct mail
- Top ten overall banking mailers, April 2006-June 2007
- Top ten checking mailers, April 2006-June 2007
- Notable checking account mailers, 2007
- Figure 16: Wachovia Bank, 2007
- Figure 17: ING Direct mail creative, media ID 20070702-11072
- Top ten debit card mailers, April 2006-June 2007
- Notable debit card mailers, 2007
- Figure 18: Wamu debit mastercard direct mail creative, 2007
- Figure 19: Citibank direct mail creative, 2007
- Top ten online banking services mailers, April 2006-June 2007
- Notable online banking services mailers, 2007
- Figure 20: Bank of America direct mail creative, 2007
- Figure 21: Fifth Third Bank direct mail creative, 2007
- Building loyalty through savings advertising
- Figure 22: Keycorp print creative, 2007
- Targeting Hispanic consumers
- Television
- Citi
- Bank of America
- National City
- Chase
- The Banking Consumer
- Banked and unbanked
- Figure 23: Retail banking account use, by gender and age, August 2007
- Figure 24: Retail banking account use, by race/ethnicity, August 2007
- Figure 25: Retail banking account use, by education, August 2007
- Figure 26: Retail banking account use, by marital status, August 2007
- Where do consumers bank?
- Figure 27: Primary financial services provider, by gender, August 2007
- Figure 28: Primary financial services provider, by age, August 2007
- Figure 29: Primary financial services provider, by household income, August 2007
- Figure 30: Primary financial services provider, by race/ethnicity, August 2007
- Figure 31: Primary financial services provider, by region, August 2007
- Figure 32: Primary financial services provider, by education level, August 2007
- Primary method used to pay household bills
- Figure 33: Method of paying household bills, by gender, August 2007
- Figure 34: Method of paying household bills, by age, August 2007
- Figure 35: Method of paying household bills, by household income, August 2007
- Figure 36: Method of paying household bills, by race/ethnicity, August 2007
- Figure 37: Method of paying household bills, by education level, August 2007
- Consumer banking and the Internet
- Length of online billpay use
- Figure 38: Use of online billpay, by gender, August 2007
- Figure 39: Use of online billpay, by age group, August 2007
- Figure 40: Use of online billpay, by household income, August 2007
- Figure 41: Use of online billpay, by education, August 2007
- Services conducted primarily online
- Figure 42: Services conducted primarily online, by gender, August 2007
- Figure 43: Services conducted primarily online, by age group, August 2007
- Figure 44: Services conducted primarily online, by household income, August 2007
- Figure 45: Services conducted primarily online, by race/ethnicity, August 2007
- Figure 46: Services conducted primarily online, by education, August 2007
- Noteworthy attributes of large bank customers
- Figure 47: Attributes of large bank customers, August 2007
- Figure 48: Attributes of large bank customers, use of online billpay, August 2007
- Figure 49: Attributes of large bank customers, August 2007
- Figure 50: Attributes of large bank customers, communications preference, August 2007
- Figure 51: Attributes of large bank customers, August 2007
- Figure 52: Have switched banks in the last 12 months, August 2007
- Figure 53: Preferences of large bank customers -- switching behavior, August 2007
- Figure 54: Number of banking relationships, August 2007
- Consumer Communication and the Banking Relationship
- Figure 55: Communications preference, by gender, August 2007
- Figure 56: Communications preference, by age group, August 2007
- Figure 57: Communications preference, by household income, August 2007
- Figure 58: Communications preference, by race/ethnicity, August 2007
- Figure 59: Communications preference, by education level, August 2007
- Preference for ways of communicating with a bank for selected services
- Getting a mortgage
- Figure 60: Preferred ways of communicating with a bank for: Getting a mortgage, by gender, August 2007
- Figure 61: Preferred ways of communicating with a bank for: Getting a mortgage, by age, August 2007
- Figure 62: Preferred ways of communicating with a bank for: Getting a mortgage, by household income, August 2007
- Figure 63: Preferred ways of communicating with a bank for: Getting a mortgage, by race/ethnicity, August 2007
- Figure 64: Preferred ways of communicating with a bank for: Getting a mortgage, by education, August 2007
- Financial planning
- Figure 65: Preferred ways of communicating with a bank for: Financial planning, by gender, August 2007
- Figure 66: Preferred ways of communicating with a bank for: Financial planning, by age, August 2007
- Figure 67: Preferred ways of communicating with a bank for: Financial planning, by household income, August 2007
- Figure 68: Preferred ways of communicating with a bank for: Financial planning, by race/ethnicity, August 2007
- Figure 69: Preferred ways of communicating with a bank for: Financial planning, by education, August 2007
- Setting up an IRA
- Figure 70: Preferred ways of communicating with a bank for: Setting up an IRA, by gender, August 2007
- Figure 71: Preferred ways of communicating with a bank for: Setting up an IRA, by age, August 2007
- Figure 72: Preferred ways of communicating with a bank for: Setting up an IRA, by household income, August 2007
- Figure 73: Preferred ways of communicating with a bank for: Setting up an IRA, by race/ethnicity, August 2007
- Figure 74: Preferred ways of communicating with a bank for: Setting up an IRA, by education, August 2007
- Setting up an educational savings account
- Figure 75: Preferred ways of communicating with a bank for: Setting up an educational savings account, by gender, August 2007
- Figure 76: Preferred ways of communicating with a bank for: Setting up an educational savings account, by age, August 2007
- Figure 77: Preferred ways of communicating with a bank for: Setting up an educational savings account, by income, August 2007
- Figure 78: Preferred ways of communicating with a bank for: Setting up an educational savings account, by race/ethnicity, August 2007
- Figure 79: Preferred ways of communicating with a bank for: Setting up an educational savings account, by education, August 2007
- Retirement planning
- Figure 80: Preferred ways of communicating with a bank for: Retirement planning, by gender, August 2007
- Figure 81: Preferred ways of communicating with a bank for: Retirement planning, by age, August 2007
- Figure 82: Preferred ways of communicating with a bank for: Retirement planning, by household income, August 2007
- Figure 83: Preferred ways of communicating with a bank for: Retirement planning, by race/ethnicity, August 2007
- Figure 84: Preferred ways of communicating with a bank for: Retirement planning, by education, August 2007
- To refinance my mortgage
- Figure 85: Preferred ways of communicating with a bank: To refinance my mortgage, by gender, August 2007
- Figure 86: Preferred ways of communicating with a bank: To refinance my mortgage, by age, August 2007
- Figure 87: Preferred ways of communicating with a bank: To refinance my mortgage, by income, August 2007
- Figure 88: Preferred ways of communicating with a bank: To refinance my mortgage, by race/ethnicity, August 2007
- Figure 89: Preferred ways of communicating with a bank for: Refinancing my mortgage, by education, August 2007
- To apply for a HELOC
- Figure 90: Preferred ways of communicating with a bank for: Obtaining a home equity line of credit, by gender, August 2007
- Figure 91: Preferred ways of communicating with a bank: To get a home equity line of credit, by age, August 2007
- Figure 92: Preferred ways of communicating with a bank: To get a home equity line of credit, by income, August 2007
- Figure 93: To get a home equity line of credit, by race/ethnicity, August 2007
- Figure 94: Preferred ways of communicating with a bank: To get a home equity line of credit, by education, August 2007
- Consumer thoughts about their banking relationship
- Figure 95: Consumer thoughts about their banking relationship, by gender, August 2007
- Figure 96: Consumer thoughts about their banking relationship, by age, August 2007
- Figure 97: Consumer thoughts about their banking relationship, by income, August 2007
- Figure 98: Consumer thoughts about their banking relationship, by race/ethnicity, August 2007
- Figure 99: Consumer thoughts about their banking relationship, by education, August 2007
- Consumer Loyalty and Factors Driving Loyalty
- Changing primary banks in the last 12 months
- Figure 100: Change in primary bank, by gender, August 2007
- Figure 101: Change in primary bank, by age, August 2007
- Figure 102: Change in primary bank, by income, August 2007
- Figure 103: Change in primary bank, by race/ethnicity, August 2007
- Figure 104: Change in primary bank, by education, August 2007
- Potential causes for changing primary banks in the future
- Figure 105: Potential reasons for switching banks, by gender, August 2007
- Figure 106: Potential reasons for switching banks, by age, August 2007
- Figure 107: Potential reasons for switching banks, by income, August 2007
- Figure 108: Potential reasons for switching banks, by race/ethnicity, August 2007
- Figure 109: Potential reasons for switching banks, by education, August 2007
- Number of banking relationships
- Figure 110: Number of banking relationships, by gender, August 2007
- Figure 111: Number of banking relationships, by age, August 2007
- Figure 112: Number of banking relationships, by income, August 2007
- Figure 113: Number of banking relationships, by race/ethnicity, August 2007
- Figure 114: Number of banking relationships, by education, August 2007
- Banking with Wal-Mart
- Figure 115: Demographic characteristics of Wal-Mart customers vs. the U.S. population overall, Spring 2007
- Conducted banking services at Wal-Mart in the last year
- Figure 116: Banking services at Wal-Mart, by gender, August 2007
- Figure 117: Banking services at Wal-Mart, by age, August 2007
- Figure 118: Banking services at Wal-Mart, by income, August 2007
- Figure 119: Banking services at Wal-Mart, by education, August 2007
- Would you leave your current bank for Wal-Mart?
- Figure 120: Leave current bank for Wal-Mart, by gender, August 2007
- Figure 121: Leave current bank for Wal-Mart, by age, August 2007
- Figure 122: Leave current bank for Wal-Mart, by income, August 2007
- Figure 123: Leave current bank for Wal-Mart, by race/ethnicity, August 2007
- Figure 124: Leave current bank for Wal-Mart, by education, August 2007
- Future and Forecast
- Future trends
- Market readjustment
- Real estate woes
- Fees as income
- Technology
- Redefining customer service
- Market forecast
- Assets at FDIC-insured banking organizations
- Figure 125: Forecast of total assets at FDIC-insured banking organizations, at current and constant prices, 2006-11
- Figure 126: Graph: Forecast of total assets at FDIC-insured banking organizations, at current and constant prices, 2006-11
- Appendix: Trade Associations
