How the Economy is Affecting Bank Choice reveals key findings about how the economic downturn has changed the way people view their banks. The data shows radical changes over the last few years in the way people think about and choose banks. More importantly, it provides critical information that can help smaller institutions take advantage of rapidly changing perceptions.
This installment of The Stackpole Report on Banking will have a significant and immediate impact on your approach to bank marketing. The 48 page report is based on an online survey of 455 Massachusetts residents between the ages of 25 and 60 years old. The study achieved a confidence level of 95% and a margin of error of +/- 5%.
Research for How the Economy is Affecting Bank Choice was conducted in January 2009. The goal was to uncover details about how the economy changed perceptions about banks of all sizes, and how turmoil in the financial and housing markets affected bank choice.
Key findings indicate radical changes in banking habits. One in seven respondents have changed their primary bank, or how they use that bank, as a result of economic conditions. A sizable number have also moved money out of the stock market.
Large banks seem to have lost standing in the eyes of many respondents, even among their own customers. Only 18% view large banks as more stable than small and mid-sized banks and credit unions, and only 16% see them as more responsible with their customers’ money. Smaller institutions are generally seen as more stable and responsible mainly due to the stronger community connection associated with these institutions. Large banks do have some advantages: they are seen as better insured and more likely to get a bailout, if needed. Still, fewer than a quarter of respondents would choose a large bank today.
Economic conditions appear to have had a significant impact on the mortgage market as well. Two thirds of respondents did not use their primary financial institution for their mortgage—most went to a mortgage broker or large bank. However, if they were to do it again, nearly 60% say they would use their primary bank or credit union. Only a minority would use a broker or large bank again.
In terms of other products and services, interest-bearing deposit accounts generated the most amount of interest from respondents, while loan products generated the least. Half of all mortgage holders are considering refinancing as interest rates decrease.
The survey was conducted online among 455 respondents between the ages of 25 and 60 years old. All respondents were Massachusetts residents. The study achieved a confidence level of 95% and a margin of error of +/- 5%.
