Direct-to-Consumer Banks Overtake Traditional Banks in Customer Satisfaction, New FIS Study Shows

Key facts

  • 2019 FIS PACE study finds direct banks overtaking traditional banks
    and credit unions as the leader in customer satisfaction.
  • Direct banks also have lowest rate of customer defections.
  • Among millennials, customer satisfaction with community banks drops as
    satisfaction with credit unions stay steady.
  • Trust, safety and a frictionless experience ranked as most important
    attributes when selecting a new bank.

JACKSONVILLE, Fla.–(BUSINESS WIRE)–New research released today from FIS
(NYSE: FIS), a global leader in financial services technology, found
that digital-only banks have overtaken traditional banks in consumer
satisfaction in the United States.

The 2019 FIS Performance Against Customer Expectations (PACE) study,
which surveyed 1,749 consumers in the United States, found that
direct-to-consumer banks – typically digital-only banks – had the
highest consumer satisfaction of any category, overtaking credit unions,
the leader from the 2018 study. Digital banks also had the lowest rate
of respondents leaving their bank.

Other key U.S. findings from this year’s FIS PACE report:

  • Nearly three-quarters (73 percent) of consumer banking interactions
    are digital in nature (mobile or online).
  • Mobile remains the most used channel for banking, increasing to 42
    percent of surveyed consumers – higher than online channels (31
    percent), ATMs (12 percent), branches (10 percent), and telephone (6
    percent).
  • Nearly two-thirds (65 percent) of younger millennials (between ages of
    18 and 26) reported that they have not used any branches at all in the
    prior month.
  • Referrals are particularly important to younger millennials.
    Seventy-five percent of these consumers said they were referred to
    their current primary banking institution.
  • Millennials’ satisfaction with community banks dropped by nearly half
    from 2018 levels, indicating that these institutions are not meeting
    the digital needs of younger generations.

The battleground for winning and keeping today’s banking consumers is
in the front lines of customer experience,” said Bruce Lowthers,
co-chief operating officer, FIS. “While security and trustworthiness
continue to be critical attributes, more consumers are choosing their
banking providers on the basis of a convenient, frictionless digital
experience. For banks and credit unions of all sizes, these survey
results reinforce the importance of modernizing every touch point of
their customer journeys.”

More details and other country-specific findings of the 2019 PACE study
can be found and downloaded at www.fisglobal.com/pace.

About
FIS

FIS is a global leader in financial services technology, with a focus on
retail and institutional banking, payments, asset and wealth management,
risk and compliance, and outsourcing solutions. Through the depth and
breadth of our solutions portfolio, global capabilities and domain
expertise, FIS serves more than 20,000 clients in over 130 countries.
Headquartered in Jacksonville, Fla., FIS employs more than 47,000 people
worldwide and holds leadership positions in payment processing,
financial software and banking solutions. Providing software, services
and outsourcing of the technology that empowers the financial world, FIS
is a Fortune 500 company and is a member of Standard & Poor’s 500®
Index. For more information about FIS, visit https://www.fisglobal.com/.

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LinkedIn (linkedin.com/company/fis)
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Contacts

Kim Snider, 904.438.6278
Senior Vice President
FIS Global
Marketing and Communications
kim.snider@fisglobal.com