1 in 5 Americans changed their banks amid pandemic: research

The company surveyed over 1,000 Americans about their banking and financial habits over the past year since the pandemic began

Americans banks

1 in 5 Americans changed their banks amid pandemic: research. Source: shutterctock.com

According to FIS, 1 in 5 people started using a new banking provider in the past 12 months. In fact, 33% of those who joined a new bank were looking for better benefits like higher savings yields and rewards. Meanwhile, 7% of the respondents revealed they did so to access COVID-19 relief.

The research has also found that 33% of those surveyed opted for a large national or global bank when starting a new banking relationship in the past year. Credit unions were the 2-most popular choice for consumers with 18% opening accounts at these institutions.

Besides, direct banks turned out to be a fast-emerging competitor in the banking space with 17% of respondents saying they opted for this kind of institution to do their banking.

COVID-19 has been a huge catalyst in driving new consumer behaviors, from how they shop to how they bank. All of this change spells opportunity for banks and credit unions to advance their digital offerings and loyalty programs to meet these changing needs and capture new customers. To meet rising consumer demand for new banking experiences, FIS has been heavily invested in digital-first solutions that bring these new services and functionality to banks while also making integration easier than ever
Rob Lee, Head of Digital and Banking at FIS

In fact, nearly half of Gen Zers responded that they sought new banking relationships over the past year for better benefits and rewards.
At the same time, over half of Senior Millennials said they opened new banking accounts because of financial needs due to entering a new chapter in life, such as starting a new job, getting married, or moving to a new house.

According to data, 10% of both Senior Millennials and Gen Xers started using a new banking provider to participate in COVID-19 financial assistance programs.

We’ve reported that the Royal Bank of Canada introduced a new initiative for Black entrepreneurs.

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