Consumers Choosing Preferred Products & Services Before FIs
"... it is crucial that community financial institutions understand what consumers look for when shopping for a bank or credit union.”
For more than 7 out of 10 consumers the credit card they want in their wallet helped dictate the financial institution where they bank overall, according to a Kasasa-commissioned consumer study.
The Austin, Texas based Kasasa’s December 2018 study, conducted online by The Harris Poll gathered responses from 2,018 U.S. adults age 18 and older, highlighted the importance of offering consumers the right products and services.
The study revealed 84% of respondents determined the products and services they want from a financial institution first, and then looked for credit union or bank that offered them; and 87% said it is important for their financial institution to serve more than just one of their financial needs.
Among the other factors consumers found important: ATM fee refunds/no ATM fees when choosing an financial institution for everyday banking (87%); a physical branch presence (86%); digital banking capabilities (79%); and person-to -person payment options (63%).
“As the fight for deposits rises, it is crucial that community financial institutions understand what consumers look for when shopping for a bank or credit union,” Gabe Krajicek, CEO of Kasasa, said. “Financial institutions must evaluate their existing offerings and ensure they are meeting consumer demand. Otherwise, they will lose out to megabanks.”
Kasasa, a financial technology and marketing provider, aims to help credit unions and community banks compete with and take back market share from megabanks by meeting consumer needs through innovative products that provide true value. Its free, rewards-based checking and savings accounts require no minimum balance and enables consumer financial institutions to increase noninterest income, reduce overall expenses and compete with megabanks.
Compared to standard free checking, Kasasa said its accounts delivered 50% more accounts in the first year, up to two times annual profit per account and 45% more non-interest income. In addition to providing ATM fee refunds, Kasasa accounts also issue rewards by way of interest, cash back, and Amazon, iTunes and Google Play credits, with total rewards to date reaching over $505 million.
Kasasa announced earlier this year they are now the fourth largest banking branch network in the nation, with 907 community financial institutions partners. This represents 3,408 Kasasa-carrying community credit unions and bank branches across all 50 states and 1,749,065 accounts. Combining all CFIs and branches, Kasasa would be the fourth largest branch network with only three having broader retail distribution.