Fall 2010 Research Issues

New Research Highlights
Key Financial Trends & Competitive Update
The Future of Checking
Market Segmentation
Delivery Channels & Online Banking
Deposit, Investment & Insurance Products
Lending & Equity Products

• How have consumers responded when asked to opt-in for ATM and debit card overdraft coverage? How can your institution improve any future opt-in communications?

• Which factors are considered most important when seeking a new financial provider: branches, ATMs, pricing, service or technology?

• What are the “sticky attributes” and “defection drivers” that impact net growth?

• In the absence of free checking, which requirements would consumers find most acceptable to avoid checking fees?
  How do consumers want to interact with financial institutions on social media sites?

• What are the customer profiles of the five largest banks and what opportunities exist to attract these customers to your institution?

• What is the profile of the mobile banker, what type of mobile delivery method do they prefer, and what factor has the greatest influence on future growth in this area?

• How has the economic downturn affected consumers and their current and future financial attitudes and behaviors? How much longer do consumers feel the recession will last?

• What is the likelihood your customers would use a remote deposit service if you offered one?

SPSG sets the stage by reviewing key economic statistics affecting the marketing of financial services. Competitive information from a variety of sources concerning the most recent marketing strategies and tactics being employed nationally will be examined. Following this introduction, consumer responses to questions in the following areas will be explored. 

• When making a decision on a new checking account provider, what weight would consumers give each of the following five factors in the decision process: branches, ATMs, price, service and technology? How do the factor weightings differ across consumer segments, generations, current type of PFI, etc.?

• If financial institutions were to eliminate “totally free checking” in favor of certain requirements (direct deposit, minimum balances, or fees), which requirements would consumers find acceptable and which would cause them to seek another institution?

• Do consumers have a bias regarding the size of an institution as it relates to convenience, service quality, pricing and technology? If such a bias exists, can this be viewed as an opportunity for the large or the small institution? Can the bias be compensated for by other factors?

• What factors keep consumers with their current PFI and what factors cause them to switch PFIs?

• Are national banks, community banks or credit unions more likely to sustain a future customer defection?

• What rate did rate-chasers get when they closed their CD at one institution and moved to another? When did the move occur and into what type of account did they put their funds?

• How are consumer attitudes toward the volatile stock market changing?

• How are Internet only savings accounts faring in today’s rate environment?

• How many consumers transfer funds regularly from their checking to their savings account? What is the interest level in “special purpose” savings accounts where funds are earmarked to help the consumer reach near- and long-term goals?

• Where do consumers keep their non-retirement investments?  How many have used, or would consider using, their PFI for investment purposes? What reasons do they give for not using the investment services of a bank, savings institution or a credit union? What sources of information do consumers use in deciding how to invest?

• How many consumers have been affected by credit actions taken by their financial institution or Credit Card Company? What type of actions were involved and how recently were these actions taken?

• What features would prompt consumers to open a new credit card? Would they consider a credit card from their PFI if it had the features they wanted? Do consumers prefer a national or local credit card issuer?

• How does the length of time left on a mortgage influence likelihood to refinance? What is the level of interest in a 10-year, fixed-rate mortgage loan and what is the profile of those who are interested?

• What is the level of consumer interest in a reverse mortgage product? What are the sources of retirement income on which consumers are currently, or planning to rely on? How comfortable are consumers with their current or planned retirement income level?