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BizReport : Loyalty Marketing : March 07, 2019

Study: Loyalty high in banking but could be higher

While the banking industry, as a whole, enjoys high customer loyalty, that loyalty could be grown even higher. That's a key takeaway from new data that indicates only about one-third of US customers have closed accounts after a banking problem. Researchers with the study believe that improving the overall banking experience could improve bankers' already high loyalty numbers.

by Kristina Knight

The new report, out from Clarabridge, found that mobile banking options could be key to growing even higher customer loyalty numbers. The problem is that more consumers are using other digital payment solutions - like PayPal or Venmo - rather than their banks mobile payment options. Only about one-third (30%) of Americans are currently using mobile wallets to pay for items despite the fact that most (87%) have mobile payment apps downloaded on their phones.
This, say the researchers, is key. If banks can find ways to improve the mobile experience, more consumers could begin using mobile payment options.
"Banks must uncover the ways in which the customer experience behind using their digital wallets is a stumbling block for consumer trust," write the report authors. "Considering most Americans (78%) have a positive experience with their bank's mobile app there is an opportunity for banks to enhance the money transfer experience so that consumers do not feel the need to go to a third party app to perform this service."
Especially since more than half of consumers have already downloaded their bank's mobile app (64%). Despite having their banking app downloaded, consumers continue to turn to other payment options, though. Just over half (53%) say they prefer PayPal for mobile/digital payments and 18% say they prefer the Zelle app.
So, what are they doing on their actual banking app? Most are checking balances (40%) or using the automatic bill-pay feature (21%).
More data from the Clarabridge study can be accessed here.

Tags: bank loyalty, bank marketing, banking, Clarabridge, loyalty marketing, mobile banking, mobile payments, online banking

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