FICO Survey Finds U.S. Banking Consumers Changing Their Savings Behavior

SAN JOSE, Calif.–(BUSINESS WIRE)–Leading applied analytics firm FICO (NYSE: FICO) today released new research on consumer deposits and banking habits. The new FICO study found that only 42% of Americans are contributing their savings via direct deposit or direct deposit, up from 47% in 2021. In the face of current economic uncertainty, consumers are demanding more from their banks to help them make in the face of difficult circumstances. Nearly half of consumers are interested in small dollar loans for expenses when their balance is low, especially when cash is tight.

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Respondents

Interested

A bank now offers the possibility of obtaining small dollar loans to help you cover your expenses when you run out of funds or have insufficient funds.

48%

A bank now offers you the ability to choose from a range of available dollar amount limits that you can overdraw your account and the number of days to return to a positive balance via a monthly subscription fee.

37%

A bank now gives you a way to get more personalized offers and advice through its mobile app and website if you share your savings goal.

67%

60% of consumers also expect a promotional offer when opening a new account and cash offers are a more popular promotion than special interest rates when choosing an offer, although both are attractive . Consumers are looking beyond their primary bank to other banks for promotional offers, as 46% of consumers have some or all of their savings at a bank other than their primary bank, with 28% choosing a bank in line. 30% of consumers have opened a new account with a bank outside of their primary bank in the past year, a trend that continues to grow.

“We are seeing fintechs and digital banks incentivize customers to open additional accounts using a variety of promotions and product features. While traditional banks may maintain a primary account for consumers, they lose a significant portion of their deposits and mindshare,” said Glenn Grossman, principal consultant at FICO. “Now is a good time for banks to consider what steps they can take to continue growing, including better incentives to support financial well-being. It’s ultimately about finding new ways to meet the needs of their customers and better help them directly on their financial journey.

One of the main areas that can contribute to customers’ financial well-being is resolving overdraft charges, as 32% of consumers have incurred at least one overdraft charge in the past year. The survey revealed that 50% of these consumers would like banks to offer small loans as a solution. Additionally, 37% of consumers would be interested in a subscription fee that allows them to choose a dollar amount to be overdrawn and a fixed number of days to pay it back.

Another key area to improve retention and improve financial resilience is the support offered by banks to help customers meet their personal savings goals. While only 37% of consumers currently save with a specific goal in mind, of those savers, 49% are interested in being able to track a goal and its progress directly through their bank. In addition, 51% would also be interested in a reward when reaching their goal, and 32% prefer messages of encouragement and advice to reach this goal.

“Banks have a great opportunity to maintain their status as the leading provider of financial services by better partnering with their customers to help them achieve their financial goals. Banks must also provide them with additional solutions in case of delays, which can help slow the migration to online banks and fintechs,” added Disgusting man.

For more details and information on the survey results:

About FICO

FICO (NYSE: FICO) powers the decisions that help people and businesses around the world thrive. Founded in 1956, the company pioneers the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and business growth in financial services, telecommunications, healthcare, retail, transportation and supply chain. procurement, and many other sectors. With FICO solutions, businesses in more than 120 countries are doing everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of planes and rental cars are in the right place at the right time.

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